Full disclosure: I'm planning on launching a journal that requires the fees for electronic subs, but I'm also making sure that all the things that make me uncomfortable in other zines are not part of my business model. And I'll pay the authors at semi-pro rates to start. (More if it ends up doing well enough to make it feasible. But if the project crashes and burns, well, I'll close up shop.) Anyway, that's still an uncertain number of months away.
I hope you do a bit more research into what you're actually doing before you start. From your post, it sounds like you need to do a lot more in any case.
I've edited for several publications and am now in the process of getting my own off the ground. Despite connections to my previous vocations, I'm still pretty much alone--but at least I know what goes into it. My literary magazine had been in the planning phase for 18 months prior to launch in January. By planning, I mean networking, having contracts drawn up and approved, applying for not-for-profit status and making an application for arts foundation/council funding as well as finding potential sponsors and a press; applying for an ISSN, purchasing a .com (or other domain) and developing a transparent and clear submissions/acceptance process.
So let's talk reading fees. Are reading fees in the first instance intended to cover costs? No. You are supplying a product, your revenue is generated from sales/circulation/readership <-- that covers your cost! When accepting reading fees, you are in essence receiving payment for a service; generating income before any sales are made. A start-up that does this can no longer apply for not-for-profit status (because your revenue is coming from other sources than actually intended). No such status = no arts foundation or similar interest funding (money intended to help you get yourself launched); it also means that an entire network of parties of interest and support immediately fall away (and several of those are of GREAT interest to a new outlet, PredEd, Duotrope, for example), including sponsors.
You may ask, how am I supposed to pay my contributors? Like I said, funding from those that are intended for it; your own pocket; or offer complimentary copies--how do I create complimentary copies without money? You either do, or you don't. Webzine and blogroll e-zines are perfectly viable outlets in today's shark infested publishing waters. But what costs other than the web provider does such an outlet need to cover? Any unimaginable costs can be recovered from ebook sales at a push, no?
In my experience, the big boys are starting to request reading fees because they have a large enough circulation or have been around long enough to not need to worry about any support network to help them get a foot in the world... others do it to dissuade the nutters (have you ever seen a fee free submissions pool?), especially as every man and his dog has internet access nowadays.
Young outlets do it because they want to make money first before any actual commitment to contributors, do not understand how it works, or are misguided enough to believe that doing so will actually help cover costs... but look at it this way: you charge a $5 reading fee, but pay successful contributors $20, that means you HAVE to reject 4 submission in practice for every acceptance! You are forced to reject a percentage of submissions regardless of literary quality or value. If you have no personal cash flowing into it, that is; how many subs do you think a start-up actually gets in its first year? Worse still, are you still giving away a contributor copy? Or do your contributors have to pay to see their work in print too? How much does a copy cost? Say your journal costs $6, your contributor has a personal profit of $9 out of the whole process. Doesn't that feel somewhat circular to you? If you are giving a copy away, then you're just about breaking even... The beauty of a contributor copy before payment is that it is a product representative of what you are about. You may make a loss on your first issue, but a contributor showing off their copy to friends, family and writing circles, having a chat about its quality on forums etc, is good marketing in prep for your next. The best way to cover costs is to have a reserve ready for your first few years, especially as being noted as a fee free submission market will encourage submissions when paired with semi-pro payment.
Expect to make losses, make sure you can cover it when you do. Have the right attitude and knowledge to negotiate and build your support network.
Think good and hard about your commitment to your project, more so, your commitment to contributors. It's no easy thing to do for either party where a young outlet is concerned. This:
if it ends up doing well enough to make it feasible. But if the project crashes and burns, well, I'll close up shop.
Does not bode well. It's totally the wrong attitude.