A Closer Look at How Does Reddit Make Money?

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Reddit is a favorite social platform which allows users to talk about a multitude of content. The website has public forums for almost every topic imaginable, from news to sports to entertainment. Reddit’s platform and user-friendliness have evolved over time. Their user base is continuing to grow over the years, and Reddit has adjusted its content to better meet its users’ needs. Reddit is wildly popular, but many people wonder about the social network’s financial stability. So, so how exactly does Reddit earn a living? Let’s dig into this company’s business to learn.

Who Owns Reddit?

Steve Huffman and Alexis Ohanian founded Reddit in 2005. They sold the business to Conde Nast in October 2006. Huffman and Ohanian chose to remain at Reddit until 2009, according to the terms of this contract with Conde Nast. By the end of the contract, the co-founders opted to leave the business. Advance Publications appointed Reddit an unbiased subsidiary in 2011. Advance Publications is Conde Nast’s parent company. Due to internal complications, the initial founders returned to Reddit in 2015. Steve Huffman was appointed CEO while Alexis Ohanian was reinstated as Reddit’s executive chairman. In June 2020, Ohanian resigned from the company’s board. He requested that Reddit fill his position with a suitable Black candidate. Visit this website to get more insight, how does reddit make money

Reddit’s current business design generates profit two various ways – a premium membership plan and selling advertising space.

Membership Plans

Reddit’s membership plan, Reddit Premium, is available for $5.99 monthly. Users get an ad-free experience. In addition they access perks like exclusive subreddits, the capability to highlight comments, and a customized ‘snoovatar’. Premium members hold the opportunity to try new Reddit features before regular members. Premium membership includes a monthly supply of 700 coins. Members award high-quality posts or quite happy with these coins. Regular Redditors have to acquire these coins.


Reddit has two kinds of advertising earnings – managed ad campaigns and auctions. Managed-ad campaigns start at $50,000. They give advertisers full usage of Reddit’s sales force. The auction advertising use a bid-based system. Advertisers bid on a CPM (click per thousand) basis. This is a measurement per 1,000 advertisement impressions or page views a specific webpage receives. On Reddit, there’s a minimum bid of $3.50 per CPM. This figure can rise during an auction.

Reddit is a successful advertising platform for most businesses, irrespective of which avenue they choose. Reddit users are usually suspicious of advertising and protective with their privacy. These are, however, very attentive to advertisings that encourage thought, learning, or conversation.

Which means advertisers own an chance to reach Reddit’s an incredible number of users if indeed they use creative advertising. The platform also is effective for individuals who need to use affiliate links. New movies and product produces have been very successful advertising on Reddit, as have political campaigns.

Is Reddit Profitable?

It’s unclear whether or not Reddit is a profitable company. Its recent growth and success with investors indicates that the business does well. Reddit’s current expenditures are unclear as well.

Since Reddit is operating independently of its parent company, it’s likely they are financially successful.


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