What am I doing wrong?

I?m in the IM business since August 2007 when I took Ed Dale?s 30DC.
After a short time I got to a monthly profit of about 400$ a month with 2 niche sites.

In one site I have an average of 1200 uniques a day, in the other I have average of 200 uniques a day, both sites generates about 2800 page views a day.

Up till not so long ago I had a cpm of 3.5$, in the last few month my cpm dropped to 1.5$.

I must be doing something right as I rank high for many of the keywords I target, I must so something wrong as I don?t make money of it.

I have a third site, MP3 downloads site with average of 6000 uniques a day with 42,000 page views a day, I tried adbrite on it for a while but made around 3$ a day.
I found no affiliate plan to run, I tried AFF for a while but they kicked my ass as my conversion sucked (1 paid account out of 601 free accounts. I didn?t cheat so I guess my audience is after free stuff and not into paying)

I feel stupid having almost 45,000 real page views a day that generates less than 500$ a month!

Can someone PLEASE show me the light? What should I try, what should I avoid?

Thanks

Build a 4th site with some good niche and use your mp3 site to show ads for your 4th site. (in house ads). Example: your 4th site could be a bans for mp3 players, etc...

Hey Danlit, why don't you try adding some email/zip submit banners in there since they're all after free stuff? It'd really fit to their liking and it pays after the first page, though I'm sure you'll get many 2nd page submits so no worries about getting booted by your CPA company. Another good idea would to put toolbar downloads on the site.

If you have anymore questions feel free to PM me with your instant messenger, I'll try my best to help you if I can. Good luck!

Heck, even better, combine the ideas from the two posts above and load your site up with "free mp3 player" offers.

Have you tried asking them to fill out your "sponsor offers" (free cpa zip and email submits) in return for the mp3 downloads that they are getting for free? I'm assuming they are getting free mp3 downloads (music, movies etc)? If so why not market the newer release songs etc as exclusives in which they "must fill out sponsor offers to access".

Sign Up to CJ you will find here a quite a lot affiliate programs for your music site!

Thanks all for your replies.
@khoahalabear - thanks for your kind offer, I'm sure i can learn a lot from you and will pm you
@lotus - if the cpa networks find that i "force" my users to fill the forms, don't i get banned?
@all the rest - you did provide some ideas i didn't tink about, thanks again