What does it make any difference when Seth Godin tried to incentivise lensmasters with referral program?

B.L.Ochman nicely summarizes the debate between Jason Calacanis and Mike Arrington over crowdsourcing.

By the way, where do you think that $1,000 money come from? – business model, I mean. I understand this is one way of paying the producers, but what then was the problem when Seth Godin of Squidoo tried to incentivise the lensmasters with the referral program?  I remember both Jason and Mike responded negatively to the annoucement.  Probably there is a difference between paying for the good bookmarking work and paying for the refferal.  I don’t know.