I totally am on board with back-of-the-envelope math, evaluating ROI, market size, etc. But come on. This was month #1, a good chunk of which was doing one-time tasks (figuring out what the hell the site would actually be, setting up the template, etc.)
If you want to fault him for something, fault him for the lack of market analysis to see if this idea really has some legs, besides citing someone else "making millions of a similar idea". E.g., a red flag was one decent sized advertiser telling him their ROI on podcast ads are not worth it.
Bill Gates also lived with his parents and worked out from their garage. If this article was targeted at rich kids that want to make money on the side and don't have to worry about paying rent and buying food then sure don't worry that you are going to end up losing money in Month #1. and Month #2 and Month #6.
Just type Viperchill into google and watch the suggestions.
It's a sad day to see him polluting HN with his "work".
As the audience here is way smarter than his average followers I hope people with see through his schemes and do not promote him.
Disclaimer: I've outed him in the past.
I don't know what he has done in the past but I think you are being harsh.
In all seriousness, this fellow is a fancy bottom feeder. It's not that there's no value in his products (and ad copy, which is what that "blog post" actually was..) its that he is not SCORE! (https://www.score.org/ https://en.wikipedia.org/wiki/SCORE_Association)
He's not "bad" compared to a Ponzi scheme, but he's obviously venal compared to the Service Corps of Retired Executives.
"Now unless you get more visibility"
What online business doesn't aim to grow going forward? I certainly wouldn't rely on the first month results for the rest of my life.
I have too weird an accent to get incredible podcast downloads, but the $1,000 goes to a reader of my site, not me.
Appreciate the feedback :)
But you see there lies the big dilemma. Great ideas are dime a dozen. The question is how big is the market for the idea and how do you reach that market and finally how do you monetize that market that results in a decent ROI. It doesn't have to be mind blowing ROI but something that generates passive income is good too.
$99.75 in expenses (not counting time spent getting sales or building website)
5 total sales resulting in $450 of sales
108 hours of work done by you. We don't know how much time it took your brother to create the podcasts. Let's assume he didn't do the 6 podcasts perfectly in the first go.
30 days of total case study.
$350 in "profit"
Divide your profit by the hours you worked on it. $350/108 = $3.24 per hour.
Now let's consider setting up the website was a one time cost so moving forward your operating expense is $30/month to host the website and the podcasts[edit]
Let's take the hours your took to get the sales and divide those by the number of sales you got. 90/5 that comes to 18 hours per sale. Your average sale value was $450/5 = $90. Let's say your put a bare minimum hourly rate for your time of $10/hour that's $180 spent getting a $90 sale.
Now unless you get more visibility and are super savvy in promoting your podcast your ROI just doesn't pan out.
Let's see what your $1000 budget gets you in 3 months. Might be a good post to regenerate interest in your podcast. :)