A+ business
He's done reasonably well these past few years. He does rely primarily on ad revenue though.
But he also implemented several features for members whereby they can earn points through being active in the community and spend them on little things, like little bonus decorative features, and a personal e-mail address and whatnot. And if you don't wish to earn the points through achievements (which are things like uploading, sharing or tagging images on particular bots) you can purchase points too. This is also used as the unofficial donation system.
ANd he's run several competitions in the past which have given away lolbot materials, like mugs and shirts. (I don't think there's a store for these however).
And he's run a fairly successful Minecraft Server which I believe has had a donation system too.
As things go, while he's not raking in the money, he's certainly managed to create a lasting community and advertise himself in decent ways, albeit on a small scale.
