What is the revenue or business model of reddit?

user 21-Aug-2022 Technology


What is the revenue or business model of reddit?

This is kinda flawed question. Reddit is foremost a community hub and they are now struggling for years to turn any profit from it. In that way, they are quite similar to other bad boy of the internet, 4chan. Another similarity between sites is that they both want to stay "pure" and put their communities first, not the ad revenue. The owners/admins of the site are quite aware, that it is users who actually make the site, not the code.

Yet they still service ads (and sell premium memberships with some added perks). This is understood by the community, as they need to cover the operating costs somehow. Yet the good people of the internet are a fickle bunch and if frequency of ads significantly increases, they would leave for some other, less ad-driven site. Interestingly, Facebook was struggling with the same problem and they are looking all the time for methods, how to increase their revenue, even to the point of "promoted posts' and cutting the natural reach of business pages. But Reddit has an advantage, considering targeted ads. The site organization into subreddits can service topic relevant ads without collecting user's data.

So in short, number of users are social sites' best asset to spark venture capital interest, and at the same time a great weakness. Facebook succeeded turning their fame and users into a big IPO, with fresh influx of money, and now Mark buys companies left, right and center, for a possible profit from their products and services. I can imagine Reddit doing some simila thing. The other option is to sell themselves to one fo the Web supergiants (Amazon, Google, Yahoo, Facebook or Microsoft) and let them run it. If it works for startups like Instagram or Oculus VR, why wouldn't it for Reddit?:)(quora)




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