He says that $250k was about how much he would have been paid by HBO or Comedy Central if he let them produce it. So his new model tripled his profit compared to the old model.
Which is probably why he ended up choosing to keep $220k for himself and giving the rest of the profit ($530k) to charity and to his staff.
Louis CK: "That leaves me with 220k for myself. Some of that will pay my rent and will care for my childen. The rest I will do terrible, horrible things with and none of that is any of your business. In any case, to me, 220k is enough out of a million."
It's one of the best comedies on TV right now. I'd even say that it is approaching Arrested Development-levels.