Daize- you are mixing instructions.
The shorter set are a quick guide to fishless cycling which is written for this but allows for one to be adding the bacteria. The longer set has a section specifically on cycling with the bacteria. I would suggest you follow the second set. Note, these instructions assume you are starting fresh. So if you already have ammonia in your tank, take this into account.
Cycling with bottled bacteria or seed material from another tank is different than an unaided fishless cycle. When you add the bottled bacteria, the ammonia and subsequent nitrite will start to be processed right away. That is, there are enough bacteria to begin reducing ammonia immediately. One reason you are able to add more ammonia the next day is that whatever you started with should be lower. Even if the tank is not fully cycled, it can still process ammonia to some extent.
If you really want to know if your tank is processing- take an initial ammonia reading after you add the drops but before you add the bacteria. I suggest you wait about 30 minutes so the dosed ammonia has time to circulate before you test. That way when you test in 24 hours before adding the next day's 12 drops, you will know if the ammonia level has dropped or not.
Oh yes, do not forget the API kits measure total ions
If you note, the short directions talk about testing on days up to 10 and then there after for a number more. The fishless with bacteria directions indicate you should be fully cycled in 5-7 days. (This could actually run a day or two more at most.)
I would suggest that you set up the tank with new water that has been dechlored at the recommended dose. Dose the ammonium chloride- 24 drops (16 x 1.5) x 2 ppm= 3ppm in 16 gals.). Remove any pre-filters, turn off the tank lights, turn off UV (if you have it). Shake the bacteria bottle well and pour it into the tank. Then have a nice evening and 24 hours later dose 12 drops of the ammonium chloride. You can test before and after you dose if it makes you feel better to know the levels.
Now do nothing but test until you see ammonia and nitrite both at 0. Then dose 16 drops and test in 24 hours. If ammonia and nitrite both test at 0, you are cycled. If not, wait for ammonia and nitrite to 0 out and then dose 16 drops and repeat the test 24 hours later. You should be cycled by then.
Keep your temp 27-30 C, make sure the pH is 7 or above, make sure the KH does not drop below about 2 dg (about 35 ppm) and make sure the water is being oxygenated.
The one caveat in all this is I can not promise you the bacteria has been handled properly from the time it left Dr. Hovanec's facility and it arrived in your hands. If it has been, it should work fine.
Using DrTim’s Aquatics One & Only Live Bacteria: The best and easiest way to fishless cycle is to combine adding the ammonium chloride with our Live Nitrifying bacteria. When used in combination, these will cycle the tank in less than one week. Again, do not add too much ammonia. We make it easy by providing a bottle of reagent grade ammonium chloride that is at a concentration such that adding 1 drop of solution to 1 gallon of aquarium water will result in an ammonia-nitrogen concentration of 2 mg/L (ppm).
The procedure is to add the ammonium chloride solution, shake the bottle of nitrifying bacteria well and add it to the aquarium. Measure ammonia and nitrite the next day and record. Add ½ dose and wait 24 hours and measure again. By day 5 to 7, you should be able to add 1 drop per gallon and the next day, ammonia and nitrite will be 0.
Eagle- I am passing not to far from your neck of the woods next weekend. I am visiting friends in Wilmington.