Hilary reports that ID3 Podcast magazine, the folks who took subscription money from people, have now decided not to go to print because they can't afford it.

So it was okay for unsuspecting podcast junkies from around the world to gleefully send cash, but the founders of this magazine weren't willing to take an initial loss on their own venture.

Always begin a business plan with a reality check. For starters, any real entrepreneur would know that you can't expect to make a profit in your first year in the magazine business. If JFK Jr. couldn't make a profit in the magazine business then what made these guys think they would make a profit right off the bat?

Smells like Silly-Con Valley circa 1999. I won't go there in this post.

Unfortunately I think that this situation underscores the hype problem happening in Podcasting.

Here you have people that have no idea what it takes to produce a print magazine, yet somehow they feel like they can promise to deliver and collect subscription money to boot. So the money sent to them for subscriptions basically amounts to an interest free loan to their venture. It's the same thing as floating a check when you know that the money is not in the account to cover it.

They will return the money I'm sure but the black eye to all podcasting related ventures will remain. People will look at podcasting related start ups and think, "It's all just hype."

I'm sorry but anyone who knows a thing about business knows that you don't take a cent from a customer unless you know that you can deliver on your promise. And these people took money without having a completed plan for their business.

Perhaps I'm being a bit hard on the ID3 lads. But people who want to make money off of Podcasting and Podcasters need to be serious about their trade. And that means crafting a common sense business plan prior to hyping what you've got to offer.

I'm definitely picking on the ID3 Mag now but there are other podcasting "start ups" that haven't done squat since they launched a press release and web page. And please let's not count speaking at conferences as accomplishments. But as far as I know they haven't taken money from people and failed to deliver.

So all you prospective Podcast entrepreneurs take some advice to heart. Knowing technology does not mean you know a thing about running a business. Partner up with someone who has a good deal of business experience. And write a thorough business plan that includes realistic financials prior to sending out a press release or launching a website. Make sure that the cash in your pocket can get you through at least six months of business before you take a cent from your customers.

By doing so you won't make a fool of yourselves and the people who put their trust in you.