(Hope I did the name of the thread right.)
So, as I was looking at the comments to the Hachette CEO's answer letter to Amazon I came across this comment. The name given for the person writing it leads to the site: Qpeka.
Their about page is pretty interesting reading. According to their "author payout table" they are still in beta, but they plan to have authors payed by "Part of ad-revenue".
In the comment I started at, "Abhishek" says they already know that authors can get revenue equal to sales proceeds...
This looks like complete amateur hour to me. As a reader I do not want to read ads in my books. And I have trouble seeing how the author can get paid the same as by royalties unless we are talking a lot of ads. Would be interested to know what everyone else thinks.