warez is illegal dude , dont do illegal things , it will never be profitable , only put you in troubles.
from my experience warez sites aren't profitable. no one will click on the ads because they don't attract good traffic. they also require alot of work and are expensive to run because you have to get offshore hosting. also there are already millions of warez sites.
I used to own a site called www.tha-vault.net had lots of goodies back in the day, mostly warez. The forum was one of the most active forums in warez block. I didnt stick any google ads but had over 500 active members which contributed every day!
You could do a torrent directory/indexing site. Get your own spiders to crawl for torrents and list them on your site in some new style - (easier than other sites, it must always truly be easier than the previous they use, you want returning visits, you want impressions for this) - of navigation and category indexing. It's totally legal for you to scrape the net for links to, and data about, torrents. You can even cross-monetize it by selling what your site learns about either your users or the sites whose torrents it indexes (dont be like that - sell the site stuff, not the users - there are plenty of legal torrent users, and it is a GREAT traffic driver even though you don't make money with it - unless you PPI ). It is highly lucrative if you do it right. I would do it if I didn't already have other plans and projects. Doing it right would amount to: An optional member feature that only disallows nonmembers to view the comments. If they want comments, join. Eventually, you go invite-only after you have a decent membership base and give them all 50 or 100 invites, personal only, no driver links, then eventually close that to be able to send out invites to users who are signed up to be notified of openings since they couldn't join. You don't even have to do any download tracking, supplying, or hosting. You just host your site that houses a look at what everyone else has. You then create a want for your service. You can get rich as hell doing nothing but gathering information.
If you really wanted to, you could set up a warez site, get it very popular, then ad ads, telling user's it's mandatory to stay alive (warez-bb does this) and I"m sure they make decent money, also donations. Warez user's are pretty generous since they aren't spending it on the products
Some of the pay per install programs will convert that warez traffic into cash. But you might get into troubles once you get famous.
It'll be profitable if you have a premium package for people to subscribe to. People flock to warez sites since they get shut down every day. Make yours known and the people will come! But I'd advise you to look into something less illegal, theres many other good site niches.