Step #2: Get covered in blogs and get 100,000 visitors.
Step #3: Get 1% signups(1000 paying customers), get paid your subscription fees. Bam you are making $5K-$10K/yr
It's basically the "there are a billion people in china, if 1% buys our product...we'll be rich!"
But it is an encouraging way to look at it: if you're a one person team, and you can keep your expenses pretty low (storage, bandwidth, credit card processing, etc. + cost of living), ramen profitability can come with just a hundred paying customers. That doesn't seem like such an overwhelming out of reach goal, even in a crowded market.
2) Bad news, as others mentioned you may not even get 1%.
Also, everyone tries to get covered in blogs. That's the standard tactic. Since most companies fail, you need to do something more than standard in order to succeed. Now, that may just be having a fantastic service, but you're unlikely to achieve that before you have customers to help you define "fantastic".