Traffic,traffic and traffic ..watch your conversion...tweak it...and watch again.. back to first step
Actually, when you think about it, it's terible. altough you don't have to phisically publish content you still need to create the blogs, and the backlinks for them, at least a few so the $5k he must be getting is pretty low for 1k blogs. it's so much hassle then you think and yea eventually for few months it might work but without proper blog dev, duplicate content and 0bl the rankings will drop for sure. so he will eventually have infiniate number of blogs to develop and always looking backwards to manage/drop the old ones, and that's because he focuses on quantity ∞)