On its face, the notion that "you've got to spend money to make money," is not a very realistic philosophy. Take my wife (please), if all it took to make money was to spend money, we'd be millionaires.
(Just kidding. My wife is AWESOME, and very financially responsible, disciplined, and patient with her husband who works in book publishing. I just couldn't resist the old Henny Youngman bit. It really makes the point.)
I had an author contact me in response to the Story Problem post to make a really good point about the philosophy of spending money to make money--a position I often advocate when other factors for success are in place. Our own Rose Keefe used that same phrase in a recent comment about spending her own money to promote her books.
In fact, that may be a good test as to whether something is a good idea for your publisher. Would you spend your own money to do it? Would you take out a loan in your own name to pay for the idea? Do you really believe you will earn it back in royalties? If so, can I interest you in an American Express Platinum card?