Peter Sunde is better known as co-founder of the infamous Pirate Bay, a Swedish website that indexed BitTorrent files. At this year’s Republica Conference he introduced a very different start up concept, Flattr, the name being a combination of Flattery and Flat rate. This is a new micropayment system with a mission to encourage people to share, content and money.

When you register with flattr you set an amount you’re prepared to pay for content you enjoyed each month. If a website offering content features a flattr button you can show your support or gratitude by clicking it (an online equivalent to a tip jar?). At the end of the month, the predefined amount get’s divided up amongst all things you flattered. With just over 20 000 members and a minimum of 2 Euros a month, the average flattr tips the author a whopping 15 cents. However, all clicks add up and some users are already reporting significant earnings. Germany’s newspaper taz.de reportedly made 988.50 Euros in June and an independent photographer claims to have received 33 Euros from 90 clicks. Flattr itself takes 10 % commission, which it says will fall as usage grows.

For the founder, motivation is as much ideological as commercial: “It’s about removing the barriers between producers and consumers. I want to get rid of that mindset so that people realise in order to create, you have to participate”.

With freedom comes responsibility, and as power gradually shifts from the provider to the consumer, Flattr could be a nice example of the responsibility that may come with this. Yes I as a user can enjoy all this wonderful content for free and instantaneously, but in order for it to be sustainable, I may just have to give something back. Mr Sunde is convinced: “Current micropayments methods are completely inefficient – there has to be a better way. Flattr is pushing the envelope from a cultural, economic and business model perspective”.

From the user’s perspective however, there are still several niggles which might hinder flattr’s long-term success. What If I want to flattr one website more than another? And what if flattery just isn’t the right word? From a branding point of view, the name just isn’t the most flattering, to make a very bad pun, as by definition it implies excessive or insincere praise.

The website is currently in the beta stage and in invite only. If you’re ready to set aside a fixed amount to donate, why not message the Flattr team and get yourself an invite? We’d love to hear your opinions and perhaps we could even exchange flattery someday.