"Gay" isn't a niche in itself - just like "straight" isn't a niche in itself.
This is the mistake a lot of webmasters make when dealing with gay stuff - they assume if something has male models instead of female models, it's just gay and everyone gay will be interested in it. But there are as many gay niches as there are straight niches, and you won't make decent money until you're willing to spend time getting the feel for it and understanding how to split up your gay traffic and make it productive.
Why not get an account at
www.cashaddicts.com and then call up our support guy, Charlie, for advice?
Or try
www.photoboyz.com/webmasters.html - that site is converting amazingly well with general gay traffic.