The newsletter is an excellent idea, as are the competitions. The prize money can be gained by selling advertising, I mean there are 2500+ authors and a newsletter being distributed to that many means you can sell advertising space at an absolute premium, believe me. 2500 writers, how targeted can you get? Tchibo coffee or Starbucks would pay good money to get in on that little deal. If you need help finding advertisers, do let me know, although I'm sure Chris has his own contacts.
And as for being too competitive, I write because I love it but the love of writing is not what puts food on the table, feeds the family or fills my veins with caffeine. That's the money I get for being competitive and trying to win jobs and sell my own work.
I believe the main point of the site is to encourage writers to write and buyers to buy and if competitions and the such promote this, then how can they possibly be a bad idea? You don't have to join in. You could even dedicate competitions to one particular subject and then offer the more 'community' spirited buyers the opportunity to fund the prize. It doesn't have to be much, in fact, it could be treated as a request for all intents and purposes and the buyer buys the top 5 at a certain price. Exchange advertising for software that all writers use on a regular basis (and no, I don't mean Yahoo Pool or Literati) and use this as a prize. Some of the software and ebooks (with market listings and tips etc...) cost a pretty penny and many authors would cherish the opportunity to 'exchange' their writing for these.
Anyway, that's my stint as devil's advocate finished so I shall bid you farewell.
