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Meta: I think it would be very helpful if "rate my startup" posts would include a short description of what the startup does in the title.
Can you suggest an edit that would be useful?

Here are some that I can think of: iter8r - A community operated social news site iter8r - Because transparency is not a just a plastic film :-) iter8r - We are "Open for business"

> A community operated social news site

Aren't all social news site community operated ?

> Because transparency is not a just a plastic film

Reveals nothing about your business.

> We are "Open for business"

Reveals nothing about your business.

I personally think it's important to both emphasize that you're a social news site and that you pay the users for their contributions. Something like "Social news shared both ways", not sure -- I find it easier to criticize bad slogans than to come up with good alternatives.

I was slightly confused about the design of the front page until I realised you had nicely pointed us to the FAQ.

I'm always slightly sceptical of companies that are 'just like X, only with an innovative ownership scheme'. What made you decide to go down that route?

If startups believe that Web 2.0 is all about users, then we must find a way to really engage with them. Web 2.0 users are savvy, have a strong sense of community. Then why treat them as just passive consumers. Debian (spi-inc) allows users to graduate to board members. We would like a Web 2.0 company to do the same.
In what possible world would the "share" assigned to each user ever be amount to something big enough to be visible with the naked eye?

Sorry to be snarky but this idea seems so ridiculously silly that I just can't comprehend how anyone could entertain it for even a second. What am I missing?

I believe the better question to ask is: If a community had to distribute profits what is the most equitable way to do it?
What profits though? The profits of free collaborative news site with adverts are always going to be very low on a per-user basis. How much money can you get for showing ads to 1 person?

Unless you're saying that it should just be the very very top submitters who get paid. But didn't Netscape.com already try paying "top submitters" to come use their site?

How much money can we make showing ads? Good question.

But how much money can be distributed if the objective is to be truly equitable?

Maybe its sustainable, maybe its not. But we had to ask this question. Who else would be this foolish? :-)

Its not just submitters who share the profits. People who read and vote are helping to filter and sort content. They are just as important.

Too much focus on who's gonna get what part of the money, before you're making any money whatsoever.

"Iter8r is a social bookmarking website that enables users to post and discover interesting articles and have discussions around them."

Don't mean to be dismissive, but that doesn't really sound like such a compelling proposition. How is this better than HN? Or Delicious? Or Reddit?

If he makes the data API truly open, as he says he will, it is incredibly enabling for a wide variety of 3rd-party applications to build on top. I'm not saying this will happen necessarily, but iter8r could potentially see a whole ecosystem built on top of its platform. That is, of course, if people use access to all the data.
We will open any aspect of the company- the data, the code, etc as long as it does not affect user privacy or cause us to run afoul of the law.

When we say Open, we really mean it.

That limerick is a disaster.
You can submit your patch :-)

  The founders persuaded the users
  To read web sites, and pick winners from losers.
  As the users increased,
  Founder ownership ceased
  Handing the reigns to a board of directors.
The meter is still off... as well as the rhyme.
(comment deleted)
Duly noted.

    Spend too much time on the 'net?
    Iter8r can help you get
    Money for your time
    Won't that be divine
    When you vote up and then get a check?
I would love an invite, but the invite request link is broken. Could you please email me one? I have an idea I'd like to share with you.
Another suggestion: Take the ads down for the time being.
I think the hardest thing for a site like this is ramping up from nothing, and the invitation-only / revenue split is an interesting way of approaching that problem.
I don't like your FAQ. It reads very hokey. Apologies.
If you have questions or comments, please use feedback at iter8r dot com

Thanks.

This is begging to be gamed -- people game for "karma" at most sites, and if karma is cash on yours, people will get ruthless.
Please take the limerick off there, or write a new one perhaps. Rhyme only counts for so much - meter is rather important.
It doesn't seem like anyone's problems are really being solved. I accomplish all of this with Hacker News, Delicious, Digg, and my own browser bookmarks. If I tried to become involved in every company whose products I use, I would not have time to create my own company/products.

I can appreciate your enthusiasm for community and the web, but I think your passion may be better served elsewhere.

edit Then again, maybe I'm just not your target user/owner.

Work on the UI...and you need to simplify the language in some sort of Elevator style pitch. No one would spend time in looking for what it does...and how it stands I had to spend a bit of time. So, Kaizan
wow. you may just become the next big amway8r!