Hi mahesh,

As I see it, you already have a potential business with your thousand subscribers. Are they volunteer subscribers? I mean, did they allow you to send them the newsletter? Which percentage of them open and read your newsletter?

I wouldn´t go for a paper magazine, new media trends are turning more and more digital. An e-magazine would be good if you have more material to publish than what you already do with your newsletter. If not, I would just continue with the newsletter and build a customized blog with a file of all the content you have already send through previous newsletters. Apart from that, a blog is ideal to build your community and let your 1000 subscribers go there and leave you their comments, suggestions, etc. Think about integrate the blog with social media, at least Twitter and Facebook Fan page to start.

I would wait to monetize till you can reach even more people, it will take you some hard work but with 1000 in your community you can think about 10, 20, 30 thousand in maybe 1 year if you do thinks right!

Monetizing your newsletter then will not be hard as you can place targeted banners on it and make some good money as you have a clearly identified niche market and audience that follows you on your blog.

Remember: The money is on your list, the more qualified subscribers you have, the easier it would be then to monetize!