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comment by Redfugee
Redfugee  ·  3432 days ago  ·  link  ·    ·  parent  ·  post: The social aggregator is a terrible business model.

Ah, the freemium model. Many sites tried it, among them Reddit. It seems to be very hard to finance a social aggregation website that way - it not impossible to earn some money that way, like Reddit does with it's 'gold' buying / giving, but it does not bring in enough money to subsidize an entire server farm.





drsweetscience  ·  3431 days ago  ·  link  ·  

Content is key. If reddit had a zynga, where would they be now?

Magnnus  ·  3432 days ago  ·  link  ·  

From my understanding, Reddit's gold buying is what saved their finances. Before Reddit gold, they were in the red.

violinist  ·  3432 days ago  ·  link  ·  

From a statement by one of the fired reddit employees on an AMA this morning, it sounds like gold is a very small percentage of their earnings.

Source: Dacvak's AMA, can be found on archive.org since it was deleted there.