In a Flavorpill interview, the editors of a new journal explained how they manage to pay contributors $1,000 for a story in this difficult economy.

Electric Literature co-publisher Scott Lindenbaum and EIC Andy Hunter outlined their innovative model: a literary journal published as a digital text, with a print-on-demand option for readers looking for paper copies of the journal. In addition, the journal can be purchased in e-book, Kindle, or iPhone format.

Here’s more from the fascinating article: “With an initial investment in the ‘low five figures,’ Hunter and Lindenbaum managed to put together their first issue in a matter of months. Since they avoid upfront printing costs–only printing issues when requested and paying the printer in bulk at the end of the month–and work with an independent distributor, they can afford their first priority: fair, even generous, compensation for writers.”