Originally Posted by Webmaster Advertising

I think we've just discovered the problem in why you are not understanding what we are saying.

If you have a budget of $5000, and your bills come to $2000 before you have even launched, you are under budget by $3000 not in the hole for $7000. But what it does mean is that you wasted $2000 and only have $3000 left to develop the sites, buy content, etc...

Lets look at it as a real world business...

I have $5000 to invest in a small affiliate program, lets say I want to launch with 10 paysites.

I go out and buy the content to use in these sites, a selection of images and DVD titles, lets say I spend $2000 on this content acquisition, because I don't want to blow my funds immediately as i still need to have the sites designed and also get the affiliate stuff setup.

My next step is to purchase the domain names, I am going to pick 11 of them, one for each website and one to use for the affiliate program, total cost, depending on your registrar of choice, between $8 and $15 per domain, lets go on the higher end of that scale for arguments sake, I have just spend $165 on 11 domain names for 1 year each.

I now have $2835 to spend on designs for 10 paysites and an affiliate program design.

Now it comes to finding a designer to actually put the sites together, I know that tube style tours are making money right now, I go and check out the various designers, see what is in their portfolios and discover i can get a full tube design created for lets say, $800. I ask the designer to lower the price, she cuts $100 off, so i now have my first paysite tour designed for $700.

I still have $2135 left for the remaining 9 paysites and affiliate program design.

I ask the same designer how she feels about creating just some headers, not full tubes (because the first site was complete and all I need to do is change out headers and CSS files to make each one unique) and what the cost would be for 1, she tells me $300, I say 'okay cool, now what if i order 9 of them?', designer tells me she can do each header design for $175, I agree and the header designs are created.

I still have $560 of my initial $5000 investment left to spend.

Oh, I need hosting too, so I shop around for that, most adult hosts are charing anywhere from $50-$100 a month, but I know that some non-adult hosts are actually fine with adult content, so long as it is legal. I find a 12 month non-adult hosting plan, with comparable specifications to Webair (as the example) for $120 a year so I order it.

I still have $440 of my initial $5000 left.

Oh I also still need to get setup for processing, I ask the designer who they would recommend, they tell me CCBill or Epoch so I contact them and ask them what the costs are, I get told to process for Visa its going to cost me $750, but, I dont have that in my budget, I discuss the options about using each processor exclusively for a period of 12-24 months and see if there is anyway they can work with me on the processing fee, Epoch tells me no, CCBill tells me yes, I go with CCBill and get signed up. (this is something that has actually happened for my clients currently.)

I still have $440 left of my initial $5000 investment.

What else do I need to buy? Oh thats right, an affiliate program design, I ask the designer that I have already spend a decent amount of money with if she can work on a program design for me, nothing fancy, just enough to put the basis details of the sites I am offering, some promo tools and a couple of nice looking pics of chicks with their tits out, she agrees and tells me she can do a nice affiliate program template for $250, I haggle on the price a little more based on how much I have already spent and tell her she will be my priority choice for future work, she lowers the price to $200, I agree and pay.

I still have $240 left of my original $5000 investment.

This can ALL be done within a 30 day time-frame, and can all be done for less than $5000.

I launch my sites and 30 days later have made between $1200-$2000 (based on your figures of 1 sale a day).

It will take me about 3 months to break even and, even make a little profit.

I take that last $240 and go and buy beer, weed and hookers to celebrate the launch of my new, profitable business, that I'm going to have for many years to come, not just 1 or 2.

How am *I* in this scenario, losing money, I have no bills to pay, because I have already purchased hosting for a year, already have the domains registered for a year and own the designs and content I am using outright.

Even if i siphon off 25% of the money I make back into the business, I still break even in 3 months and that $500 a month I am putting back to invest in the business means that within a year I can launch another 10 paysites, invest in new content, domains, renew hosting costs (even upgrade hosting if required).

If my math is off any, please let me know, was writing this on the fly... Based on real life examples, no perceived examples or speculation.