You will now have to find about 40-50 films. The Black Tie Gala. Thus, a loss. Then your festival becomes known as a sleeper. More filmmakers want in with their first projects.
Audience comes and revenues grow and become larger than expenses.
I've been told from my high-priced drunk of a lawyer that things are changing, though, and that because I've kept the copyright to all of my films, and because of all these turks with their internet sites and digital cinemas and other outlets, I'll be able to reap the financial rewards of my misspent life soon enough. I see guys like Lloyd Kaufman at Troma doing well with their line of trash. Away in SoCal Dear Wasted, Remember there are several types of trash. Good trash and Bad trash. Now if your trash is good or bad you might as well burn it.