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Originally Posted by DamageX
I honestly don't think sponsors with lots of affiliates would drop them, that would be plain stupid. If you already have an infrastructure for a business model based on affiliates, not using it for further business would be an utterly stupid thing to do.
However, aside from that, say invest $50-100K once, then add some monthly paychecks to that, plus some hosting and feeder traffic, and you'll have enough base to make back that money in a couple of months, afterwards making an increasing monthly profit.
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#1. No sponsor without a need for affiliates can pay $50 - 100K all at once.
#2. What feeder traffic? Without affiliates and their sites, free, tgp, 404'd, etc, traffic would be GOOGLE, YAHOO and MSN only.