Cheezburger Network CEO Ben Huh was the subject of a Q&A with AdAge.com in which he discussed how one site featuring funny pictures of cats with amusing, misspelled captions turned into a thriving blog group, including I Can Has Cheezburger, I Has a Hotdog, FAIL Blog, Engrish Funny, There I Fixed It, Roflrazzi and newest addition That Will Buff Out.
Huh told AdAge.com:

We're just going through the process of creating content that makes people happy for just a few minutes a day. We are not trying to be a TV network; we're not trying to be a big media company. We are growing small things that are gathering loyal audiences. When you show up and you want to laugh or take a break from your daily work, then we have this little blog for you. You go, load the page, you scroll, and you're done.

Everything we do is screened by a moderator. We see 10,000 submissions a day across all the blogs. So they look at everything that comes in to see that it meets our terms of use, that it is editorially appropriate, and then they classify and tag it. So if there is nudity, violence toward animals, racism—the stuff advertisers fear, their worst nightmare—we guarantee that that does not happen. Then the editorial control is turned over to the users, who tell us what is funny. But before something is promoted to the home page, there is one more check to make sure it is advertiser-friendly, and then we put it on the blog.

I love the fact people think I do this out of my garage! I am a business person. Let's put it this way, no LOLcat I have ever created has made the home page.