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The Maths...
One or two of you guys have suggested $60k as the advertising budget !!! But I am like WTF... the maths dont add up... and this is where I need some help to clarify it for me...
If I have a site that does 100 sign ups a day at $30 a throw thats $90k a month... now you have to take the processing fee out of that, lets say thats 13%... so about $12000... leaving $78,000...
I then reckon on the affilaites fees... even saying they are really small lets say $10,000... that leaves $68,000... you then have to take out the running costs like content and bandwidth... reckon espcially with the type of site this is will be around $4000... leaving $64k... now by the time you take out your advertising budget of $60,000 then your left with a profit of $4000...
Gambling $60k with a view to winning $4000 profit ??? hmmmm...
Now I actually then though ah but you get your $60k back... but then you are just reinvesting that back into the traffic/promotions !!! So you never really see it... cause again come the end of the month and you have to take it back out again so this is always rolling back into traffic and promo... heaven forbid you have a bad month !!!
So am I missing soemthing here with the maths... ??? Help... I am so confused...
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