PeterD23 said:
I've found something that you might be interested in:http://penny-arcade.com/patv/episode/crowdfunding
These guys offer a fairly concise explanation of the traditional ways to make money for a game (publishers and investors) and they talk about Kickstarter and other crowdsourcing ideas. A word of warning, though: They are talking about it as consumers, NOT developers, and for all the praise they heap on direct consumer funding, it's still a difficult path (look at all the failed game fundraisers on Kickstarter).
As well, there's something I forgot to mention in my first post.
Learn about money. If you are serious about becoming a developer, you need to learn how to handle finances (or get some people to help you, and even then it's best if you know something about it as well). A few tips:
Company Bank Account: Keep your personal finances and the game-making money separate. Open up another account at a bank specifically for the company, and funnel all your money (donations, revenue from games/advertisements, etc.) into it. This serves a bunch of purposes: it helps build your credibility as a company, it allows for easier tracking of the companies finances, it helps with taxes, and it shows your fellow employees where the money is. This last one is critical: if you make money, the people you work with will want their fair share, and they won't like it if you hoard it in your personal account (it also helps determine how much money they are actually owed).
Ink and Paper are Your Shield: The modern world runs on documents, contracts, and files, and the sooner you understand them, the less likely it is you will be screwed over. Read some business and legal textbooks (or better yet, take classes at university if your major allows it) to get an understanding of how to write a legal document, what you should look for to check that's it's all on the up-and-up, etc. Incorporate your company, and keep track of every piece of paper it generates. Also, MAKE SURE that you and the people you are working with sign contracts with the company. If you want to fool around making games, that's fine and good, but if you want to make money, you need to know how that money is being divided and spent, and what to do in situations like "Bill is leaving, and he's demanding $1000 in back pay". Which leads me to my next point...
Suit Up Lawyers have a bad reputation, but they are invaluable to anyone who wants to do things and make money. Once you guys have decided to incorporate, pony up a few hundred dollars and get a law firm (preferably one that specializes in start-ups and tech companies) to file all your paperwork, help draw up contracts, file patents for IP, and everything else. It's an investment that protects the company (and you) from being mangled by another developer, a vengeful ex-employee, investors, etc. As well, hire an accountant to help explain your books, and consider retaining one for tax season. I can tell you from personal experience that they know the system inside and out, and can help you handle your money and dodge fees that you never knew you were paying.
So that is my second bout of advice. Business is complicated, messy and dangerous, and if you aren't willing to learn about it, you WILL fail. Remember Tesla and Edison: Tesla was arguably the better inventor, and has a rock band and resonant transformer circuit named after him; Edison was undoubtedly the better businessman, and has bridges, companies, and moon craters named after him, more than a thousand patents and retired extremely wealthy. You have the choice, so choose Edison (but don't kill any elephants).