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You make no points bitch. You also need to learn to fucking read.
Did I say you would launch a pay site on $1500 of content? No.
I said you could use that material to get started. In 30-45 day you should make your money back. You go shoot another $1500 of material. Rinse, wash, repeat for about 6 months.
Now you should have 3 months of material to launch a pay site if you've done it right. Plus a few DVD's to be sold.
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Should You Email Your Members?
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Enough Said. 
"Would you rather live like a king for a year or like a prince forever?"
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