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mate,
there might be more to this low payout.
What is your Google PR?
You should put a lot of hard work into raising your page rank. Do this by sorting out link exchanges with high page rank website(s) (not too high - but somewhere you can sort something out).
When your website is linked with high ranked websites, google will value it more. When this happens, SUCCESS!! Your payouts and PPC rate should rise.
Another thing to consider is how long visitors stay on your site. Try to find this out. This is important as Google themselves check if people are staying on it for long. If they are staying for less than 5 seconds, it is obvious it is not that good. This is Googles way of sifting through the masses of sites and getting the cream separated from the crap.
Good luck and finally, experiment, try new sizes of ads, change content, add fresh content and just the general advice from this post.
Once again, good luck, hope you get what you deserve (in a good way).
Put in the hard work and you WILL receive the rewards.
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