The problem with POD is that it's a lot harder to come across the really good books. The advantage of POD is that promising writers can get their work published a lot easier, but unfortunately the same is true for bad writers as well. Writers some times don't like the process that the traditional publishing houses have set up, but the process filters out a lot of amateur junk. The editors are their for a reason, they aren't married to the ideas in the book so they're more likely to see things that should be changed. The process tends to churn out more enjoyable novels that keep readers entertained.
As far as how to make money as a fiction writer? Well the easiest way is to use Amazon. You don't actually even need to have it printed. You can just list it as an ebook which is getting a lot more popular because of kindle, ipod, and the like. Getting listed is cheap and you'll get paid every time someone downloads the book.
If you really want to make money with it then after you have the book listed on Amazon start promoting it. Set up an authors website and SEO it for you as an author as well as the title and subject of your book. Write inside cover type synopsis of the book and submit to article directories. Make a FB page and work at getting fans. Go to sites like Fluther and similar sites that have a lot of avid reader types and make posts about your book. Promote both your author website as well as directly promote the Amazon listing. Just look through the bhw forums to see how people promote any other type of product and use those same methods to promote your book.
One cool thing about Amazon is that you just need to send the visitors via your referral link. It doesn't matter if they buy your book or buy something else. You'll make money from selling your book as well as from people buying other books as well.
If your writing is good, you've come up with a good concept and plot, and you've done a good job self editing the book then it could possibly even become popular. On the other hand you need to have a thick skin. Books are very likely to get unsolicited reviews. Readers expect quality, if they don't like a book they don't mind really tearing you and your book apart in a review. If it's a book with a lot of heart and soul into put into it then bad reviews can really shake up a writer.
