Royalty Based Financing (aka Revenue based financing) is not new... our application of it is new.
The oil and mining industries have been using it for decades, and the music industry thoroughly abused it and earned themselves a bad name by doing so!
The plan is for him to earn a royalty off the subscribers to his Silver service on the site. (Alliteration FTW!)
It isn't royalty based financing, but it is another interesting payment model. I wonder how many other sites will start to put their highest-read authors behind pay walls?
And what about incentives? Is this putting the incentives in the right place?
Whatever happens, it will be interesting to see how this relationship plays out...