Business Model of Reddit and how it generate its revenue.
                     BUSINESS MODEL OF REDDIT 
AND HOW IT GENERATE ITS 
REVENUE
WHAT IS REDDIT?
 Reddit is a website for social conversation, a news sharing site and a prominent content appraisal 
tool. The business was founded in 2005 by Steve Huffman and Alexis Ohanian, who had respectively 
mastered computer science and trade degrees from the University of Virginia. 
Source: www.feedough.com
ADVANCE PUBLICATIONS
 Reddit was founded in September 2011 as a subsidiary of Advance Publications; a US-based 
publishing corporation. One year after, Reddit became an independent corporation with Advance as 
its largest shareholder.
Source: www.futureworktechnologies.com
REDDIT BUSINESS MODEL
 Almost every viral material on the site has its origins, according to most of its users, in Reddit. The forum 
consists of several chat spaces, each with an own website, moderators and users, known as subreddits. 
 Community formation and maintenance is carried out by users who can post contents (texts, links, photos, 
and videos) and comment on and vote on other posts.
Source: www.computerhoy.com
HOW DOES REDDIT MAKE MONEY?
 Like other social networking platforms, Reddit still makes money from advertising. But unlike them, 
Reddit’s business model has far more outlets.
Source: www.wikicat.com
ADVERTISEMENTS
 Reddit is a broad open forum for marketers that are prepared to invest some time. You may have your ad 
featured on the front page, or as a supported link on some sub-edits.
 The rate typically starts at $5 and $0.75 per thousand page views, with up to $220,000 depending on the 
amount of page views threshold. The further pages the more the number is reflected.
Source: www.feedough.com
PREMIUM MEMBERSHIP
 Reddit has a remarkably lucrative premium subscription feature to boost the "Rediting experience" of the 
customer, by adding certain additional functionality such as
 Rediting ad-free experience
 Coins weekly (virtual good you can use to award exemplary posts or comments)
 Premium access is subject to a shift – /r/lounge
 On your profile tab, Premium Badge.
Source: www.feedough.com
REDDIT COINS
 With the Reddit Premium Membership, you earn 700 coins per month, although it is still possible to 
buy awards without being a premium member. 
 These coins, like the earlier Reddit Money, are used to award a Silver Award (worth $0.4) or a Gold 
Award (Worth $0.99) or a Platinum Award (Worth $5.99) to users who have made a positive post or 
message.
Source: www.feedough.com
REDDIT GIFTS
 Started in 2009 as the world's biggest secret santa scheme, Reddit Gifts is an online experience 
where strangers, automatically paired by Reddit, swap gifts with each other on the marked day, with 
Reddit profiles as their only popular element. It is absolutely free to register accounts. Reddit does 
not charge users with anything.
Source: www.feedough.com
SENSE OF BELONGING
 The idea of the site is to upload some sort of content and to give it either an upvote or downvote 
from other users. If not, people will actually share their viewpoints on the content of the comment 
section. 
 The website is simply a forum for conversation organised in a crude style. On the website Reddit has 
more than one million groups.
Source: www.reddit.com
SPEAK YOUR MIND
 Reddit has always wanted to be a platform to thrust users towards a multimedia-capable alternative 
reality. A space where people come with little to no censorship to discover the realms of human mind. 
 The forum is also relaxed when learning about subjects. This free expression advocacy has improved 
the website's consumer appeal. 
Source: www.marketing land.com