Where does the money go?

[http://www.otakunovideo.net/wp-content/uploads/2011/02/4Hero_manga_page_005_by_mazjojo-198x300.jpg|198x300px|4Hero_manga_page_005_by_mazjojo]

I think we all know about scanlation sites -- websites that provide translated manga for free. Most fans turn a blind eye to scanlation sites; yes, they're illegal, but they're also convenient. And they're fan-run, anyway.

So, at what point does a site cross the line from fan-run into a commercial endeavor?

I ask because I've noticed several scanlation sites explode with advertisements lately. How much money are these scanlation sites making off of other people's work, anyway?

Meanwhile, a Japanese 18-year-old was arrested for uploading manga, and making over US $3,000 from it within a few months. These weren't scanlations; the (alleged) perpetrator linked to Japanese files he'd posted to MegaUploadg. However, the basic setup is the same as a scanlators': a website offering free manga with ad support.

The primary reason that I turn a blind eye to scanlations and other free manga sites? I assume they're operated by fans who aren't making significant money off their endeavor. Moreover, if I like a manga enough to read more than a few pages online, I'll buy it (as I did with Dance in the Vampire Bund).

So I assume that these ads are going to pay for server costs. But are they?

I wonder now.