But thanks for such incredibly insightful and honest posts. This kind of information can only be obtained from the inside, from those who got experience in these huge launches.
For any newbies, it's recommendable to see your business in stages. Build it from the ground up, keep re-investing your earnings and keep scaling things up. There are so many costs, which most people oversee:
-Taxes
-Insurance (if an unhappy customer decides to sue you!)
-Legal advice (professional agreements, terms, contest rules etc)
Luckily, where I live... it's easy to convince the IRA (we got another name for it here though) that I'm selling services and intangible items. That means you get more tax benefits.
Imagine what even such thing as the hosting would cost for someone who received 2.5 million unique visitors, of which most on launch day. You'd need a serious private server to handle that! (Hence the 'melt down' we've seen so often in the IM market)
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