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I love Reddit, but remind me what's their business model? I've never seen an ad using Relay For Reddit. Free content is great but how do they keep the lights on

I love Reddit, but remind me what's their business model? I've never seen an ad using Relay For Reddit. Free content is great but how do they keep the lights on much less justify $1.7 billion? (Also, HN. Servers are cheap but how do they pay dang to tell me I'm being toxic?)

SanPilot 9y ago
The reddit.com website has some ads on it. Relay probably uses their API, which doesn't include any ads.
jacquesm 9y ago
> Servers are cheap but how do they pay dang to tell me I'm being toxic? They don't have to pay dang for that I'll be happy to oblige, this is a toxic comment because of that last bit, essentially you are just stirring the pot and baiting the moderators. As for the value of HN to YC: it's a recruiting and marketing machine the likes of which you'll rarely find for any kind of money, I suspect that no matter what Dan and Scott are paid it is well worth it to YC.
- raldi 9y ago
  Also, HN provides YC with unending nuggets of insight.
crispytx 9y ago
They run sponsored posts on the HTML version of reddit, not sure about their mobile app tho. I've actually paid to run some ads on reddit and would recommend them. Their ads are cheap and they'll definitely send traffic your way if that's what you're looking for.
- meesterdude 9y ago
  i have not had such great experiences with their advertising platform.
denim_chicken 9y ago
They track us and then sell our data.
- cJ0th 9y ago
  ding! Here is what Mr Huffman has to say on this topic: https://youtu.be/6PCnZqrJE24?t=8m13s https://youtu.be/6PCnZqrJE24?t=8m13s
  - SquareWheel 9y ago
    This seems pretty obvious, doesn't it? Your interests are the subreddits that you're subscribed to. They don't need to do any "tracking" because that's just how the site works by default. Steve's tone here is pretty clearly tongue-in-cheek.
MarkMc 9y ago
Relay For Reddit is not normal - most Reddit users see ads occasionally. Apparently 6 percent of internet users in the United States use Reddit in their spare time [1]. It is probably the same in Canada, Australia and the UK. If we assume $0.25 in revenue per month per user and 20 million users, that's revenue of $60 million per year. [1] https://www.statista.com/statistics/443332/reddit-monthly-visitors/ https://www.statista.com/statistics/443332/reddit-monthly-vi...
- hn_throwaway_99 9y ago
  I can believe your statistics are at least somewhere in the ballpark. Thus, I still have no idea how you get to a $1.7 billion valuation on $60 million in revenue, nevermind profit.
  - MarkMc 9y ago
    Actually, I'm not so confident about the ballpark. My link also says there are about 1.3 billion unique visitors per month. So in addition to 20 million Reddit 'addicts' there could be 1.28 billion less-frequent users. If they are worth on average $0.01 per month that would be an additional $150 million per year in revenue.
  - loceng 9y ago
    Value of the data and the potential that exists with it.
kilroy123 9y ago
Reddit gold is one way they make money. But they modify every outgoing link for affiliate money. https://www.reddit.com/r/announcements/comments/4mv578/affiliate_links_on_reddit/ https://www.reddit.com/r/announcements/comments/4mv578/affil...
- bpicolo 9y ago
  I thought they announced that they killed that experiment? Might be wrong, though, can't find that now
  - griffinmichl 9y ago
    We did kill that feature.
    - jacquesm 9y ago
      That wasn't a feature.
MicroBerto 9y ago
Propaganda is the primary business model as of late.

SanPilot 9y ago

The reddit.com website has some ads on it. Relay probably uses their API, which doesn't include any ads.

jacquesm 9y ago

> Servers are cheap but how do they pay dang to tell me I'm being toxic? They don't have to pay dang for that I'll be happy to oblige, this is a toxic comment because of that last bit, essentially you are just stirring the pot and baiting the moderators. As for the value of HN to YC: it's a recruiting and marketing machine the likes of which you'll rarely find for any kind of money, I suspect that no matter what Dan and Scott are paid it is well worth it to YC.

raldi 9y ago
Also, HN provides YC with unending nuggets of insight.

crispytx 9y ago

They run sponsored posts on the HTML version of reddit, not sure about their mobile app tho. I've actually paid to run some ads on reddit and would recommend them. Their ads are cheap and they'll definitely send traffic your way if that's what you're looking for.

meesterdude 9y ago
i have not had such great experiences with their advertising platform.

denim_chicken 9y ago

They track us and then sell our data.

cJ0th 9y ago
ding! Here is what Mr Huffman has to say on this topic: https://youtu.be/6PCnZqrJE24?t=8m13s https://youtu.be/6PCnZqrJE24?t=8m13s
- SquareWheel 9y ago
  This seems pretty obvious, doesn't it? Your interests are the subreddits that you're subscribed to. They don't need to do any "tracking" because that's just how the site works by default. Steve's tone here is pretty clearly tongue-in-cheek.

MarkMc 9y ago

Relay For Reddit is not normal - most Reddit users see ads occasionally. Apparently 6 percent of internet users in the United States use Reddit in their spare time [1]. It is probably the same in Canada, Australia and the UK. If we assume $0.25 in revenue per month per user and 20 million users, that's revenue of $60 million per year. [1] https://www.statista.com/statistics/443332/reddit-monthly-visitors/ https://www.statista.com/statistics/443332/reddit-monthly-vi...

hn_throwaway_99 9y ago
I can believe your statistics are at least somewhere in the ballpark. Thus, I still have no idea how you get to a $1.7 billion valuation on $60 million in revenue, nevermind profit.
- MarkMc 9y ago
  Actually, I'm not so confident about the ballpark. My link also says there are about 1.3 billion unique visitors per month. So in addition to 20 million Reddit 'addicts' there could be 1.28 billion less-frequent users. If they are worth on average $0.01 per month that would be an additional $150 million per year in revenue.
- loceng 9y ago
  Value of the data and the potential that exists with it.

kilroy123 9y ago

Reddit gold is one way they make money. But they modify every outgoing link for affiliate money. https://www.reddit.com/r/announcements/comments/4mv578/affiliate_links_on_reddit/ https://www.reddit.com/r/announcements/comments/4mv578/affil...

bpicolo 9y ago
I thought they announced that they killed that experiment? Might be wrong, though, can't find that now
- griffinmichl 9y ago
  We did kill that feature.
  - jacquesm 9y ago
    That wasn't a feature.

MicroBerto 9y ago

Propaganda is the primary business model as of late.