If you could get the users together that model could work, but you still run into the winner takes all problem with social networks: nobody likes Facebook, but that is where all your friends are.
Of course, for some communities the value is that all your friends aren't there, but in general even if I was willing to pay for that service (and it would probably have to be 5 usd/month, not per year due to scale) most of the people I know wouldn't be willing to pay that and so the idea is DOA.
It is however quite possible that model would work for other types of software -- after all that model was exactly what Danish farmers used to fund the companies that could process their milk.
Of course, for some communities the value is that all your friends aren't there, but in general even if I was willing to pay for that service (and it would probably have to be 5 usd/month, not per year due to scale) most of the people I know wouldn't be willing to pay that and so the idea is DOA.
It is however quite possible that model would work for other types of software -- after all that model was exactly what Danish farmers used to fund the companies that could process their milk.