How Does Reddit Make Money? Reddit Business Model

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The founder of Reddit Steve Huffman claims that his platform Reddit is the face of the internet.

In the year 2017, the organization had a staggering count of the monthly visitor which was reported to be 539.9 million active users out of which 249 million users were fresh visitors. And had an average of 500,100 communities.

Positioned as the 4th most frequently visited website throughout the United States and 9th visited website throughout the world. In its most recent crowdfunding, the company was successful in raising USD 2 billion.

Business Model of Reddit

What do you mean by Reddit and how does it function? What’s the business model of Reddit and how does Reddit make money?

Go on to read the article further to understand and answer all the questions just like the ones mentioned above.

What Do You Mean by Reddit?

It can be simply put up as a community-based conversation, a news facilitation website, and a platform for rating the online content which became live in the year 2008.

The firm was started by Alexis Ohanian & Steve Huffman in the year 2005. These two knew each other as being roommates at Virginia University with commerce and Computer Science as elective subjects.

Later the company became a sub-brand of Advance publications which was a media-based company originating from the United States of America back in September of 2011.

After one year, the company became independent after turning Advance Publications into its greatest shareowner.

The concept behind naming this media giant was a blend of two words “Read” & “It” was picked to indicate the sentence “I already read it on Reddit” which is the true logic behind Redditt’s functioning as the throughway to get to the most sensational & latest things on the web.

The Functioning of Reddit

Before knowing how does Reddit makes money, we should know about its functioning. In accordance with the majority of the users, close to each & every content being seen or deemed as a viral one on the web is somehow connected to Reddit.

The smart juncture does comprise of numerous subreddits, individual discussion, moderators, subscribers, each having their window for discussion and the option to make it exposed to the world.

The subgroups are generated and administered by those users who have access to posting any kind of content such as (links, texts, videos, and images i.e. media files).

Also, a user can not just view it but also has all the rights to comment on such posts as well.

Creating Account @Reddit

Creating a user account of Reddit is very easy and becoming a Redditor is even easier as it does not take much of your time.

It is a remarkable platform created by the founder to discuss generally anything and almost everything. Redditt being such a great platform does have an abundance of diverse and loyal customer base.

The masses usually spend day after day endlessly surfing the web with seamless stuff and engaging comments and posts.

It’s a community that keeps growing stronger and larger day after day.

There are over hundreds and thousands of images, text posts, and links that are posted and are being posted every single day which makes any reader of this post go and check it out once.

As already mentioned above it is a gathering of like-minded people by similar kinds of people.

The voting role here becomes a dominant factor as for an upvote it gives better ranking and enhanced authority and the platform usually ranks the ones with more upper votes than the ones with downvotes.

Although the Redditt’s smart algorithm is far better than any other. On the other hand, prioritizes the latest ranks of comments in comparison with the content which is newer and higher than the older ones.

Smart Tactics Used by Reddit

Yet another strategy is taken into consideration by the Reddit platform due to its smart and self-learning algorithm which keeps the users engaged and moved toward posting more and more while not forgetting to comment in huge numbers as there are digital points known as karma.

Another concept of ranking on Reddit scores and ranks the people’s activity as they move around the platform.

A user is subjected to points creditor to comment and share posts on another individual’s post.

There are higher chances of you getting a great karma score when the links you just shared get a good enough number of upvotes and also you can lose it when they are unvoted.

It is more of a digital pat on the back of a person who is being more useful for the site.

Coming Back From the World of “Karma”

While coming back to the real world from the virtual one it is a Python built on advanced technology as the language offers the flexibility of functionality.

Back in the year, Redditt was featuring as an open-source, and all the source code it does have was offered openly on GitHub.

At present Reddit runs on Amazon cloud service which is AWS (Amazon Web Service) in common among the masses.

With an understanding of the business view, Reddit is more of a plethora of comments and entries posted by authorized users.

How Does Reddit Generate its Income?

Now let’s talk about how does Reddit makes money. Similar to any social media platform Reddit top makes the major chunk of its income from promotions and advertisements.

But dissimilar to all of the other social media platforms combined there are a lot more chances and opportunities for the platform to grow and earn while also offering its users to have a fair share in the overall profit or money made.

1. Promotions & Advertisements

Reddit makes money from usual sources as it is an open juncture for all promoters and advertisers who wish to invest their time doing a little research work.

They can have their advertisement placed on either the front page for the users or can have the ads or promos on a specific target or subreddits as a backed & sponsored link from Reddit.

The price per Reddit can mainly vary from USD 1 to 5 per one thousand views or impressions and can go up to USD 20K depending on the total value which is dependent on the total views of the page.

The greater the page views in numbers, the higher will be the amount payable to the platform.

2. Reddit Gold (Premium Membership)

What is Reddit gold? the platform usually has an astonishing profit-making tactic while sticking to a Gold/Premium membership.

Which is believed to enhance the customer’s experience by offering several additional just like turning the advertisement window off, the greater number of comments per page, and sorting the comments as per a user wish.

Also, the premium Reddit window offers a user have access to personalized themes, personalized avatar creation, and an alternative to pinpoint the latest comments which is useful for the user to directly jump on where they left from.

This is the answer to what is Reddit gold.

3. Reddit Gifts

The Reddit money-making could be explained as the cluster of stranger group spread across the globe coming from a community which is being bound together by Reddit.

Who never saw each other even once being rewarded and awarding someone to being faithful and loyal to the community for the generous contributions by being a part of it.

4. Reddit Coins

Although you are credited with over 690+ Reddit coins at the month-end just like salary creditor, one can still make good use of that money to go premium instead of paying up from a card.

This is how Reddit makes money.


Even you can know how to make money Reddit using Reddit as is completely free of cost it does not ask you for money just the time you spend on the smart and engaging platform is more than enough.

According to the founder’s words which were “We don’t want anything, just your presence is good enough for us to keep going and improving Reddit for an enhanced experience”.

Going for a premium option is entirely up to a user as even you don’t subscribe for the premium the platform will still be the same for a user.

This was the complete article on how to make money on Reddit in which we talked about Reddit money-making and some topics like what is Reddit gold.

I hope this article was helpful to you and you can mention any questions below.

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