Fanfiction is the medium of choice for fans to express themselves, as well as their love for the books they read and the movies and television shows they watch. While it is been around for a while, so much so that even some classics are in a way fanfiction. The cyber space though has truly unleashed fan fiction, making it a hundred times more diverse and so much more accessible to all. This paper will deal with the various cultural effects of fanfiction as well as its effects on the social sphere. It shall look into the legal aspects of fanfiction, the rules of copyright that must be adhered to and those that are often flouted by fans, whether knowingly or unknowingly. It shall look into the issues that arise out of the ease of availability and how this affects children and young teens. Finally, it shall shed some light upon the various aspects of financing fan fiction, the difficulties as well as the possibilities.