Hi Passad,
I would like to give some of opinions for your questions.
On the question whether to use blogs or normal websites, I feel blogs are better.They have many advantages.
Blogs are easier to be created and managed. It doesn't require much technical knowledge on our part. Futhermore, blogs are search engine friendly.They are indexed faster than normal websites.When they are search engine friendly, getting free targeted traffic is much easier.
Which format works well?Hmm..... I guess everything will work well if you are able to create pre-selling contents. Read Ken Envoy's "Make Your Content PRE-sell".its free. It'll help you understand the art of pre-selling
Choosing a niche is the very first and the most vital process. I would say, instead of looking for a niche which can be easily started, try to find a niche in which you have interest in and has a long term potential. You wouldn't want to end up in a niche which can be immediately started but couldn't be continued because you have lost interest in it or it is a niche which cannot be developed further.
Hosting your site separately is always better because you will have full control over your contents. However, if you can't afford premium hosting, use "**********.com".They offer free hosting with MySql and php features which allows the installation of blogs.Plus there will be no advertisements placed by them on your sites. But make sure you get your own domain name at least. It wouldn't cost you much. This will facilitate you when you are moving on to premium hosting plans after making some money. Most blog platforms such as Wordpress are free, so you wouldn't need to worry about them.
Hopefully my opinions will give you some idea on how to begin your online venture. All the best!
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