dirt cheap development will get developers broke?

I am currently paying one guy $400 for a single addon, one which I know a fair few people will want also.

It will be with a lite version for free and a premium version for a small cost, the money raised from the premium will then go to

a) pay off my own costs b) then be used to pay for the next addon, and the cycle will continue.

I have no intentions of hiring "cheap" coders just because its cheap, I would rather use someone I know and trust, that has proven time and time again to provide quality work.
One of the paid addons that we have custom made for our site will be made available free after we test it. The number of site using it will be small but will grow in the future but by then, we surely will make it back in the form of our other revenue sources.
 
I look at the free addons kind of like a job interview. If they are really good, intricate and original addons, I hire them on the side for custom work for my site.
 
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