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I looked into this long and hard and even built a website and minimal implementation, as I'd had some experience running and contributing to bounties on Open Source projects, but the more I thought about it, the less like a solid business it seemed.

The biggest problem is that the amounts involved are small, and the number of projects involved is also small (this is a $400 project, and it was considered interesting enough to get front page on HN; this indicates a tiny market). At the time, SourceForge, and several other Open Source sites, were beginning to add bounty and "hire this developer" features, and I couldn't see how a third party could more effectively reach those users or those developers (because you need both sides to buy into your product in order for it to be useful). The amount a third party could charge for the intermediary service is bound to be low or developers would go elsewhere; a couple points, maybe. So, 2% of $400 is 8 bucks. It'll take 10,000 projects of that size per year to pay yourself a decent salary and cover expenses. There probably haven't been 10,000 Open Source bounties in the past decade, much less the past year.

One of the problems a product like this would solve would be the trust issue: Can the bounty contributors trust the developer to deliver quality code if paid at the start, and can the developer trust all of the bounty contributors to pay up in a timely fashion if the code is delivered first. But, there are already ways to solve that problem. ChipIn solves the latter one, and many Open Source developers are sufficiently well-known in their community that no one would doubt they would finish the job. The other problem is connecting developers with money; but SourceForge and elance and many other sites already provides mechanisms for users to give developers money, as do traditional contractor agreements.

Of course, you've specified "digital content", and I was just looking at software, which opens up the market quite a bit. There were discussions amongst the browncoats (Firefly fans) of building a system to directly fund new Firefly episodes through viewer contributions. But, I think in the end, everyone agreed that the math just didn't add up. It might for lower budget content.

Back to software, I think github and SourceForge could make a few extra bucks from this kind of idea, but I don't think there's much room for any third party to fit into that relationship, if they aren't already in the loop for some reason.



Can't I accomplish the same thing using Kickstarter?


Yes, but it didn't exist when I was working on the problem. But, it is one of many competitors you would face trying to make money in the space today.




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