You have to admit, that is a damn good idea. Like you say, selling memberships in bulk for a buck to make more money sounds like it'd work
The only thing that I'd like to know is how you make all of your money when you pay the webmaster $5 ?? Sure, you could probably count on the member sticking around for a few months with only a $1 monthly fee, but you'd have to keep them for 5 months before you started seeing a profit, even then, that'd have to cover bandwidth and other expenses.
OR do you have exit pops and stuff like that. I didn't see any from the link above.