That's more complicated. They gain money even for advertising and for good reputation. If you start get bad reputation less ppl play game, surf your website, click your ad banner, etc...
KSP lives because mods and mainly with CKAN and KerbalStuff. When Squad start loses $$$ they will up again.
Bad move Squad, bein nice with ppls that help you gain money is the 1st rule to gain more and more...