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Reddit has a ton of revenue - $500 million per year. Considering the work of actually running the site is done by volunteers, what is baffling is that they cann
by epups 3y ago
Reddit has a ton of revenue - $500 million per year. Considering the work of actually running the site is done by volunteers, what is baffling is that they cannot be profitable with this amount of money.
- joshstrange 3y agoThere is profitability and then there is VC-profitability. One of them normal people can understand and the other is absurd IMHO. VC forces you to staff up, spend like there is no tomorrow, and have a huge return or GTFO. $500M a year should absolutely support a company like Reddit (even giving the API away for free) but that’s not a 10-100-1000x return so it’s essentially $0 to VCs. When Reddit says they aren’t profitable they really mean they aren’t profitable /enough/ coupled with their high headcount. Working at a small startup (or a side project) will show you what can be accomplished with 1-10 or <50 people who are all committed.