Little Green Footballs

Wednesday, November 30, 2005

Pajamas Burn Rate

Let's see now...

70 blogs being paid (guess) average $300/month each = $21,000
Office Rent/Utilities @ 3000/month = $3000
Bandwith charges for Pajamas Media. Can't be more than $20/month = $20
Web design = 0
Office Manager (say) $2000 = $2,000
"Staff" in Barcelona, Sydney & LA - (say) $2000/mo each $6,000
Sales/Research Staff (say) $10,000/mo total = $10,000
Inflated Salary for Charles Johnson & Roger Simon (say) $10,000 each per month = $20,000
GRAND TOTAL: $62,000 Per Month
Say $70,000 with "expenses". $70,000 per month for ???


Winston Smith said...

Don't forget the cost of that lavish do at the Rainbow Room! That place ain't cheap. Not to mention airfares for those who were "comped" to attend. That li'l shindig probably didn't leave Pajamas Media much change from $10,000.

If you figure $100,000 in "start-up costs," and running costs of $70,000 a month, this means PJM can continue running for 3 more years even if they don't get a penny in ad revenue.

Or until the VC's start asking pointed questions. Like many startups, they probably have a business plan that cautiously projects minimal profit in year 1, followed by big bucks in year 2. So this time next year is probably when the fecal matter will impact the ventilation device.

Steve said...

Unless profit is not a motive and those particular VCs are just a conduit for Bush Crime Family PR money (stolen from the taxpayer). PJ Media is an ideal way to subsidize the Spin Machine.