The article doesn't say you can't make money. Nor does it say you can't scale. It simply points out that there's no such thing as a free lunch, and that once you start hiring employees you're going to have to charge more, which in turn is going to make sales harder, which in turn means you will need to work more, not less, than you did before you had the employees.

For an absolutely terrible service/product. This will catch up with them eventually. My company is in talks with someone who is experiencing this pain right now actually.