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You just have to study more.
Most of the people here started out making mistakes. My first site made so little money I never cashed the check.
You've made a few basic mistakes on this first site - but there are ways to repair them, and start making more income.
Will you make a ton of money? Well, thats WAY harder than it used to be. Wether or not you make enough money to be happy depends a lot on your life situation.
Erotic story sites are a challenging niche - but it's also a slightly rare niche, and picking a rare niche and really becoming an expert in it is one of the ways of making a living in this biz.
Just keep studying, keep asking questions, try some experiments, develop your pool of knowledge and experience.
Probably the easiest way to get "free" legal content would be to sign up for a sponsor that provides free content that fits your niche - then use that content to illustrate your stories - and have the content linked with the sales code to your sponsor.
The blog idea is probably a good one.
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