• Biggest Problem EXPENSES
• Biggest Problem INCOME
• Taxes – Draft

My creds: I'm a Comptroller for a $32M annual revenue business with 20 operating units in Northern Virginia with 500+ hourly employees. Not that you need to be an expert to do this, but it takes a certain kind of autismo to parse financial statements for fun.

Part I: Discrepancies

I focused on the 2015 Taxes - Draft since this is the source of contention for Dick's alleged withholding of W-9's due to alleged discrepancies as well as Dick's outstanding $6,172.23 shown in the Tax Draft as "still unpaid" by Maddox to Dick.

The major issue I have with the 2015 Taxes Draft is discrepancies with the Expenses. We have three different numbers across Dick's documents:

1. $5,086.56 : From Taxes Draft, summing up the expenses column but excluding CDBaby fees and Fiverr (cool sean, etc). Also missing the redacted "Transcription" amount.
2. $5,433.01 : The actual sum of ALL expenses shown on the tax draft, less the redacted Transcription amount.
3. $5,467.56 : From the Expenses spreadsheet for 2015. This appears to be the correct total amount of expenses for 2015. Variance of $34.55 from the Taxes - Draft corrected amount (#2 on this list). If the transcribers were paid only $34.55, then this is reconciled and complete. [update: Transcriber has commented that this is not the correct amount paid, but some other discrepancy, and that Dick was not responsible for reporting their payments as expenses]

Due to the shown Expenses amount missing $346.45 in expenses for 2015, plus the $34.55 in Transcription fees discrepancy, the profit split and outstanding amounts are also wrong.

Including the Youtube revenue and expenses, the correct show looks as follows:

• Revenue: $65,987.42
• Expenses: $8,696.91
• Profit: $57,290.51

50% Profit Split: $28,645.26 each

since King Cuck is carrying a $34,122.66 balance in the Season Pass Paypal account, the outstanding amount owed to Dick is $5,477.41 (Still Unpaid!).

2015 BPITU Items	Amount
youtube show revenue	$5,000.00
Season Pass revenue	$34,122.66
Single Episodes revenue	$11,448.07
Ad Revenue	$15,416.69
Total Revenue	$65,987.42
youtube expenses	$3,229.35
Art/Bits	$1,217.56
Sean	$3,500.00
Transcription	$34.55
Server	$120.00
cert	$9.00
libsyn	$240.00
CDBaby fees	$199.45
Fiverr (cool sean, etc)	$147.00
Total Expenses	$8,696.91
Total Profit	$57,290.51
50% Split	$28,645.26
Owed to Dick	$5,477.41

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Part II: Analysis & Projection

Normally, a business would pay the hosts an appropriate salary for their labor in order to derive an actual profit number, this would give a more-realistic depiction of how profitable the business is when considering the host's labor spent on producing the show, as well as providing for a fund for reinvestment and improving the show over time. Instead, they aren't paying themselves anything as an expense, while pocketing 100% of the leftover revenues as "profit." This isn't good bookkeeping or standard business practice.

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Assumptions - BPITU 2015

• 1 show per week: 52 shows
• 1 bonus ep. per month: 12 shows
• "Profit" per episode, per host: $447.58
• Recording Time: 90 min. (pre editing)
• Preparation Time :60 min. per ep. (research on stats/problems, voicemail, as well as physical setup for recording)
• Admin/Overhead time: 60 min. per ep. (scheduling guests, website admin, paying ppl, marketing and promotion)
• Total labor hours per host per ep.: 3.5hrs

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• Per hour pay rate per host: $127.88

Projection - The Dick Show 2016

Assuming a similar "profit" margin for The Dick Show (86.8% of Revenue), less Sean's raise (He was paid $3.5k in 2015, let's assume Dick gives him $5k now), we assume a profit margin of 84.5% for TDS.

• Patreoni Revenue: $135,588/year ($11,299/month) [assumes 0% Growth, despite 70.67% growth from last month]
• 5% Patreoni Fees: $6,779.40/year [this is already taken out of the public-facing number]
• 15.5% Expenses: $21,016.10/year
• TDS Annual Profit Projection: $107,792 $114,572

Now, BPITU took 2 hrs per host for research, preparation, and administrative tasks. Let's assume Dick absorbs 100% of this labor. This means it takes a single host 5.5 hours of labor per episode instead of 3.5 hours split 2-ways. This is probably over-estimated since there's no longer structure to the show or research done in preparation.

• Dick's hourly pay rate on BPITU 2015: $127.88/hour
• Dick's hourly pay rate on TDS 2016: $306.23 $325.49/hour

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Part III: An Empire From Ashes

Dick started from scratch, having had the last two years-worth of subscribers stolen from him, and started off with ZERO revenue (no sponsors).

Despite this, he has now far surpassed his income from BPITU and nearly matched the downloads per episode of the Purse and Beauty Product Shopping Network.

Swindle & Hide

Meanwhile, King Cuck Maddox has alienated most of his hard core, while retaining only the latent subscribers that he stole from a collaborative project.

I wonder what his sponsors will think about his false subscriber and download stats, given that his entire listenership rests on former subscribers to a very different show.

Looking at the ghost town that is the Madcast subreddit and facebook pages, it is clear that Madforcox's listenership is comprised of the following:

• Casual subscribers who didn't notice or care that the show changed formats. The show auto-downloads to their phone each week regardless of if they listen or not. These listeners will not buy sponsored products
• Massive numbers of former fans who reluctantly listen to the Purse Network when there's nothing else good on. Based on TDS social network activity, this is at least 2,000 active fans. These listeners will not buy sponsored products
• A handful of die-hards who are loyal to King Cuck no matter what he does or says, and no matter how much he changes from the original Maddox character. Based on social network activity, this number is between 80 and 500 active fans.

Has the Indiana Jones Purse Network sustained high numbers of downloads despite changing? Perhaps. But the listener demographic and level of engagement has dramatically changed. The fans who actually seek to support the show have voted with their wallets - and Madcocks' sponsors are being taken for a ride.

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[update] My Projection is a bit off, TDS is actually even more profitable

Was rereading this today and it occurred to me, that I scaled all of the expenses with the massive bump in revenue, however, many of the expenses are static and would not scale with the revenue amount.

For example, the $120 server fee is probably the same and shouldn't be expressed as a % of revenue (scaled). Same with libsyn. The Art/Bits expenses would only scale if Dick pays the people more, but even then, it's doubtful the raise will scale 1:1 with the increased revenue (otherwise he would be paying everyone nearly double!).

Finally, By including the Youtube project in with the BPITU 2015 numbers and then deriving a profit margin, my TDS profit margin was distorted (since TDS won't have a shitty youtube series). The Youtube show had a profit margin of only 65%, versus the main show's margin of 90%. TDS profit margin should be even higher than the assumed 84.5% profit margin, likely 90% or better, driving Dick's hourly pay and total annual take-home even higher than my original projection.