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> Is this going to turn out like Twitter with a huge purge of Reddit staff too Let's be serious, Reddit making a profit will decrease the likelihood of massive

> Is this going to turn out like Twitter with a huge purge of Reddit staff too Let's be serious, Reddit making a profit will decrease the likelihood of massive layoffs. I suspect if Reddit backs down in this protest drama they will be forced to do layoffs to become profitable instead of becoming profitable from making more revenue instead of reducing costs. > As an employee do you support the blackout secretly? Well considering the internal memo got leaked, I think there must be someone who supports it.

starttoaster 3y ago
> Let's be serious, Reddit making a profit will decrease the likelihood of massive layoffs. I feel like this implies a couple of things: 1) A business is ever satisfied with their current profit margin. I'm not sure that's the reality. 2) Company profits going one way or the other affect a company's decision to perform layoff rounds. While maybe partially true, I think all the major tech companies performing layoff rounds has proven this to be mostly untrue.
- that_guy_iain 3y ago
  I would say neither of those are really implied. If you're going to IPO you need to show growth. It's the most important thing. Realistically, making a profit isn't such a big deal if you have a solid plan and are growing. If they can't show that they are able to reign in Reddit users, who are by far the biggest problem for monetization of the platform, then they need to show they're able to get growth other ways. That would be growth in profits.
  - starttoaster 3y ago
    > If you're going to IPO you need to show growth. It's the most important thing. I think you're in a chicken and egg situation here. The reason you want to see growth is because as an investor you suppose growth is a good indicator for future profits. So the most important thing is actually still... profits.
    - that_guy_iain 3y ago
      No. Growth is important because it means the value in the future will be bigger.
      - starttoaster 3y ago
        Did we say the same thing? What’s valuable? Income. Nothing besides money really matters to a for-profit business.
        that_guy_iain 3y ago
        Yet some how for-profit companies become more valuable when they just grow their user base. You seem to be applying basic logic to company valuations while at the same time you probably also understand the finical market is completely fucked up. Amazon lost money for god only knows how long and was extremely valuable and sought after investment for nearly the entire time. Why? Because growth. They don't care what kind of growth they just want growth. While a sane person would say the growth should be in money so they could eventually be profitable, that's not how the markets work. So they can either show growth in the fact they're growing their customer base to include API customers and revenue streams. Or they can show growth in profits.
        starttoaster 3y ago
        Right, and what’s the end goal of growth? Why do companies and shareholders want to see growth? What does growth of API consumers potentially lead to? Let me make it simpler: why did Reddit start charging money for their API?
hackersword 3y ago
To date I've seen no logic that shows how any of reddit/spezs actions will actually increase profit. Making a wild claim about how much 3rd party apps "cost them", is not the same as actually seeing revenue once those 3rd party apps are closed. As most people have been saying, the majority of 3rd party app users are the more advanced technical savvy ones. There may be SOME percentage of the 3rd party app users who transition, but if the 3rd party traffic is as trivially small as Reddit has claimed, not sure how that will overnight magically transform them into being profitable. I've never seen an Ad on reddit with use of old.reddit.com , RES, and adblockers. I was a primary user of Apollo, and I certainly won't be using the reddit mobile app. I deleted the app off my phone once the writing is on the wall (rip the bandaid off now and detox vs in 9 days), my phone reported my usage is down 19% this week, so that is a plus. Absent any business plan on how those actions will actually drive profit, everything they've done has had sole effect of alienating their power user, mods, etc. and I don't see how that helps profit.
- mcmcmc 3y ago
  3rd party app users are all cost, no revenue. Just eliminating them would by definition move the bottom line towards the black.
  - gbear605 3y ago
    Reddit doesn’t like to remember it, but it’s fundamentally a site where users provide content, and only a small fraction of users provide the most popular content (and do moderation). Those fraction tend to be the more advanced users that use things like third party apps or RES. So hurting those users is decreasing the amount of free work that the users give to Reddit, which means that either the site decreases in quality (less revenue) or Reddit needs to pay employees to do the same work (higher costs). The cost of the third party apps themselves was trivial, and if they just wanted to recoup those costs they could have proposed a much more reasonable cost per user for third party apps. It’s about control, not about profit.
    - that_guy_iain 3y ago
Havoc 3y ago
> Reddit making a profit Step one to making a profit is don't burn the house down

starttoaster 3y ago

> Let's be serious, Reddit making a profit will decrease the likelihood of massive layoffs. I feel like this implies a couple of things: 1) A business is ever satisfied with their current profit margin. I'm not sure that's the reality. 2) Company profits going one way or the other affect a company's decision to perform layoff rounds. While maybe partially true, I think all the major tech companies performing layoff rounds has proven this to be mostly untrue.

that_guy_iain 3y ago
I would say neither of those are really implied. If you're going to IPO you need to show growth. It's the most important thing. Realistically, making a profit isn't such a big deal if you have a solid plan and are growing. If they can't show that they are able to reign in Reddit users, who are by far the biggest problem for monetization of the platform, then they need to show they're able to get growth other ways. That would be growth in profits.
- starttoaster 3y ago
  > If you're going to IPO you need to show growth. It's the most important thing. I think you're in a chicken and egg situation here. The reason you want to see growth is because as an investor you suppose growth is a good indicator for future profits. So the most important thing is actually still... profits.
  - that_guy_iain 3y ago
    No. Growth is important because it means the value in the future will be bigger.
    - starttoaster 3y ago
      Did we say the same thing? What’s valuable? Income. Nothing besides money really matters to a for-profit business.
      - that_guy_iain 3y ago
        Yet some how for-profit companies become more valuable when they just grow their user base. You seem to be applying basic logic to company valuations while at the same time you probably also understand the finical market is completely fucked up. Amazon lost money for god only knows how long and was extremely valuable and sought after investment for nearly the entire time. Why? Because growth. They don't care what kind of growth they just want growth. While a sane person would say the growth should be in money so they could eventually be profitable, that's not how the markets work. So they can either show growth in the fact they're growing their customer base to include API customers and revenue streams. Or they can show growth in profits.
        starttoaster 3y ago
        Right, and what’s the end goal of growth? Why do companies and shareholders want to see growth? What does growth of API consumers potentially lead to? Let me make it simpler: why did Reddit start charging money for their API?

hackersword 3y ago

To date I've seen no logic that shows how any of reddit/spezs actions will actually increase profit. Making a wild claim about how much 3rd party apps "cost them", is not the same as actually seeing revenue once those 3rd party apps are closed. As most people have been saying, the majority of 3rd party app users are the more advanced technical savvy ones. There may be SOME percentage of the 3rd party app users who transition, but if the 3rd party traffic is as trivially small as Reddit has claimed, not sure how that will overnight magically transform them into being profitable. I've never seen an Ad on reddit with use of old.reddit.com , RES, and adblockers. I was a primary user of Apollo, and I certainly won't be using the reddit mobile app. I deleted the app off my phone once the writing is on the wall (rip the bandaid off now and detox vs in 9 days), my phone reported my usage is down 19% this week, so that is a plus. Absent any business plan on how those actions will actually drive profit, everything they've done has had sole effect of alienating their power user, mods, etc. and I don't see how that helps profit.

mcmcmc 3y ago
3rd party app users are all cost, no revenue. Just eliminating them would by definition move the bottom line towards the black.
- gbear605 3y ago
  Reddit doesn’t like to remember it, but it’s fundamentally a site where users provide content, and only a small fraction of users provide the most popular content (and do moderation). Those fraction tend to be the more advanced users that use things like third party apps or RES. So hurting those users is decreasing the amount of free work that the users give to Reddit, which means that either the site decreases in quality (less revenue) or Reddit needs to pay employees to do the same work (higher costs). The cost of the third party apps themselves was trivial, and if they just wanted to recoup those costs they could have proposed a much more reasonable cost per user for third party apps. It’s about control, not about profit.
  - that_guy_iain 3y ago

Havoc 3y ago

> Reddit making a profit Step one to making a profit is don't burn the house down