The Theory of Webcomics: How Webcomics Make Money
The question is how webcomics make money. The answer is: Most of them don’t, but the ones that do usually rely on numerous sources. These typically include advertisements on the site, donations from readers, merchandise sales, and paid online content.
The webcomic itself can play several fundamental roles, all of which rest on the same idea: You come to the site to read the comic.
When the revenue source is advertising, the comic consists of a draw that makes the presence of advertising acceptable, in the same model as a TV show. Depending on the hosting site (and the author’s preferences) these can be Google text ads, banner ads put together by Project Wonderful and similar ad brokers, or customized ads solicited and designed by the artist himself. The former two are the easier choice, and typically the available ones to smaller comics with less traffic. More popular comics can often solicit advertisements from online retailers or other comics. The biggest comics, such as Penny Arcade [link: http://www.penny-arcade.com/], have been known to attract advertisements from companies looking to tap into their audience, such as Sega.
When discussing donations, the comic plays the role of a bridge or connection between the author and the audience. The author is typically closer and more responsive to audience feedback than a novelist or print comic author could be, often maintaining comic forums or a Livejournal to communicate with them. Over time, the audience thinks of the author not as a faceless comic-making entity, but as a friend who gives them free stuff and deserves to be rewarded for that. Randy Milholland is the undisputed master of this, having dared his readership that he would quit his day job if they’d donate a year’s salary. Which, in a matter of days, they did. (more…)

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