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The best way to make a small fortune in the space business is to start with a large one.
This is a quote often attributed to Elon Musk. Given that Musk has indeed accumulated a large personal fortune from various entrepreneurial activities before
undertaking his SpaceX business venture, we need to take that quote seriously. It also suggests Musk has not (fully?) imbibed the Kool Aid
so often ridiculed at the Space Cynics blog. It is also said that Musk
openly acknowledges that he cannot currently present a plausible
business case to justify accepting money from investors.
SpaceX is said to be cash flow positive for the current year however that obviously involves deposits taken for future flights. While positive cash flow certainly is a good thing, it is also not the same as being profitable. In addition, SpaceX has yet to make any financial return on the substantial commitment of time and money and personal energy contributed by Elon Musk himself.
Surely Musk could figure out how to make his large fortune even larger rather than smaller if he so desired. So, what motivates Elon Musk in his quest to lower the costs of reaching LEO?
Perhaps Robert Zubrin (of all people) has the answer to this question.
If it is true that humanity cannot really become spacefaring so long as taxpayer revenue is required to pay for spaceflight, then NewSpace needs to locate non-taxpayer sources of revenue to support humans in space. I see four categories for that (and would be thrilled if anyone can offer a category I have overlooked):
(1) Space Tourism
The Space Cynics just love this category, don't they? ;-)
(2) On orbit materials processing and Pharma research
(Paul Dietz has demolished the perfect ball bearing myth and the Cynics confirm that Big Pharma has essentially zippo interest for spending money on zero-gee drug or medical research. However, the category is included for purposes of completeness.)
(3) Space resources and energy
He3 & PGM & space solar power. Opinions vary. ;-)
(4) Media, marketing, sponsorships, brand enhancement
Anyone attempting (1) or (2) or (3) certainly can combine those efforts with product placement deals such as "Intel Inside" spots for computers doing on orbit bio-tech reserch or a requirement that space tourists wear Nike logo flightsuits or appear in videos drinking Gatorade while on orbit. Or this category can be pursued on its own.