3:00 PM -- Some interesting news in the online video sharing space that doesn't involve YouTube Inc. or Google (Nasdaq: GOOG): Tech Coast Angels has provided the video sharing site eefoof.com with a $225,000 funding round, according the site's founder Kevin Flynn.

Flynn, Mr. Peanut Butter Jelly Time, says eefoof.com will work on recoding the site, redesigning it to make it more efficient, and the company will embark on a viral marketing campaign to promote its business model. That business model, by the way, is unique in that it pays users based on how many Web hits their content generates for the eefoof site.

Eefoof.com pays about $3 to $4 per 1,000 hits right now, but those numbers will go up as more people use the site and more original content makers go online to share photos, movies, etc. In recent months, the company had one user earn a payout of $350 for some photos that drew lots of traffic.

Flynn says as the site raises its profile and adds more advertisers, the payouts will become larger and larger to those folks who submit truly creative stuff.

My take: With online ad rates going up and bandwidth costs going down, the eefoof.com model is definitely intriguing and has a lot of promise, even in a world where YouTube is about to make a pile for having very little original content and LOTS of pirated video.

— Phil Harvey, News Editor, Light Reading