I'm not exactly making a killing in the kindle store, but I know plenty of authors who are. The trick seems to be offering a book with general appeal and then getting enough momentum to get it featured in Amazon's "customers who bought X also bought Y" links. Once a book ranks in the top 1000 or so, Amazon's marketing engine creates a positive feedback loop, and there's potential for sales to take off.
All of this presupposes that the book is intriguing enough and priced reasonably enough that casual shoppers will be willing to make an impulse buy.
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