How best can we market template sites? (sites that sell templates) Are there any template directories? Are niche markets/forums etc where we can market them? Any suggestion would be greatly appreciated.

I came across this template directory: http://www.websitetemplate.org/
Not a huge one or anything but looks promising.

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Jerlene
DNLodge.com
manual Directory Submission Service

Seems, somewhat useful. Thanks for the link Jerlene.

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Look for a niche not overly saturated as there are just too many free templates out there to the general audience. For example, you might specialize in templates for band websites, or model portfolios, or small business sites, or photography / design / art portfolios, etc.

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Thank Jerlene for the link that you posted. You are right Carlen, there are plenty of websites with free templates I will think about your advice.