benpastecover2008.jpgWhile giant publishers with seemingly limitless budgets were forced to reassess their finances and even shutter publications over the last two years, a small, 8-year-old music magazine has been quietly expanding through innovative solutions to its cost problem.

Paste magazine, run by Tim Regan-Porter, Nick Purdy and Josh Jackson, offered its readers several options to help combat dwindling finances, including several different subscription package combos, fundraising and getting recording artists to release a special song for their magazine that wasn’t available elsewhere. They also started turning out a smaller product to save on costs.

Not only did it work, but Paste is on the road to being out of the red, according to publisher Purdy. And with if the magazine can find more help from an “angel,” it would “put us on sound financial footing and let us invest in things like circulation again,” he told Audience Development.

Now Paste has bulked up its content by entering into a licensing agreement with Featurewell.com, which allows Paste articles, columns, and reviews to be reprinted in other publications. Meanwhile, Paste is able to reprint content from any of Featurewell’s other clients, including TV Guide magazine, New York Observer and Reason magazine. While we’ve seen this sort of content-sharing happen with more and more frequency with Web publications (like Gawker and The Business Insider), it’s been slow to catch on with print journalism. Here’s hoping that 2010 sees other small publishers being as creative with their funding options and content as Paste.

Press release after the jump.

Read More: Back in BlackAudience Development

Previously: Paste Asks Readers, Musicians To Help Save Mag

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