Crunchy T. Numbers Wrote:
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> So Mike starts this podcast for two reasons:
> 1. Get Picked Up by New Stations.
> 2. Make money off the podcast.
>
> Situation 1 – Get up by new stations – That ain’t
> gonna happen. If you can’t pick up even one
> station when you are on a CBS flagship station,
> you sure as hell ain’t gonna pick up a station
> from a 1 hour podcast. Your radio days are gone.
>
> Situation 2 – Make money off the podcast. Welcome
> to the wonderful world of self-employment Mike.
> No Medical, no matching 401k, no unemployment and
> social security. If you are self-employed you
> have to shoulder a huge self-employment tax and
> then if you add in the other perks, you are
> looking at having to make 2 to 2 ½ what you want
> your salary to be.
>
> So let’s say all 4 guys want to make the pit alee
> amount of $50,000 a year per person. They are
> actually going to have to bring in around $100,000
> a year per person to account for a 38%
> self-employment tax that also pays into their
> Social Security. So 4 guys = $400,000 to make
> $50,000 a year per guy.
>
> Now take into consideration operational cost
> (bandwidth, computer, equipment, etc) let’s put
> that at $100k even a year. So the MOM podcast is
> a $500,000 drain a year for the guys to make a
> crappy $50,000 a year (no medical, insurance,
> etc).
>
> Now to attract advertisers, they need to have a
> return on investment of at least 2 to 1. So for
> every $1 dollar spent by an advertiser, at the
> very least, they have to guarantee a $1 dollar
> profit (so $2 for every one dollar in). So if I
> am an advertiser and I put $5000 into the MOM show
> into advertising, I should expect(at the very
> least) $10,000 in return.
>
> So for the MOM show to make $500,000 a year for
> Mike and others to make $50,000 salary(no dental,
> no medical, no 401K) the MOM show has to generate
> over $1,000,000 in advertising revenues for their
> clients.
> Do I think this will happen, No.
> Mike is done. He should have worked harder when
> he had a job. He was handed the world and he blew
> it.
Nice example. How would Robert DeNiro advise Mike?
http://cinema.videosift.com/video/I-offered-you-a-chance-to-be-a-cop-AND-YOU-BLEW-IT