[btipling]

Nope, because:

(engineer * number of engineers) - (average monthly payment * number of customers) < 0

An engineer's salary at a small startup is at the very least $50,000, let's just round that down to $5,000 a month, so how long do you think it would take you to reach $15,000 a month in recurring revenue at what are probably $5 a month plans (this does not include any other costs such as office, servers etc). That's about 3,000 users. And that's just to pay a very poor salary with no other kind of expenses.

[nate_martin]

That's what VC is for.

[Mz]

Not to disagree with your overall point, but $5k/month x 12 months = $60,000/year, not $50,000/year.

(Perhaps you were rounding up rather than down?)

[btipling]

Yeah I completely messed that post up. :P