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by vixsomnis 4018 days ago
Micropayments are not an option right now due to the friction: no one is going to give you their payment information. It requires a large amount of trust.

One particular advertising model I like is internal advertising. I've been brainstorming a business model to compete with a webcomics ranking service that removes the need to rely on external advertising services (Project Wonderful, Google AdSense, etc.). In my opinion, this is the least intrusive monetization strategy.

Since your ideal users would be generating content, with the intention of having as many people as possible view and interact with their content, you should use this to your advantage. Instead of advertisements, you have "curated content". Since you have a wealth of internal data (from, say running Piwik analytics) and can categorize the content on your service, content creators can pay to have their stories presented to users, beyond whatever free presentation they get.

Meanwhile, you can return some of that overall money to reward content creators based on the number of users they've generated, or perhaps users returning on a normal basis. This should incentivize better content.

The downside to this model is that you already need a sizeable viewership for any creators to pay for sponsorship. You'd have to invest heavily in your service before you get any returns at all, especially since you have to attract quality content creators.

In the first 6 months or so, I'd imagine any "rewards" would have to be given out of your personal finances, since you won't have people throwing money at you until the rewards for purchasing sponsorship are tangible.

Advertising isn't much better in terms of income, however. You make almost no money when your userbase is small, and the adverts tend to make users think less of your site (and not come back).

(Disclaimer: I have never tried this before, although I intend to. I also doubt I'm the first to think of this model.)