Social bookmarking giant Reddit needs financial help from users even though its owned by Conde Nast. The main story for people is that Conde Nast has money, and that Reddit programmers shouldn’t be asking for donations. However, the DailySkew founders have a different take. For the record, I use Reddit, and encourage you to submit this article to Reddit because Reddit users are very critical and thoughtful. I appreciate that the Reddit founders keep the site easy, simple, and fast. I admire that they have no sold out. However, it’s poor business sense in 2010. Anyway, here is a slightly edited version (to protect the guilty) of The DailySkew’s opinion of this Reddit donations story:
Damian: 280 million monthly page views and no ad revenue…nice business plan- to keep everything free (communist) and with no ads, no e-mail marketing, etc…too bad we’re not in a utopia yet, where that would work.
Tony: And to top that all off, they’re owned by Conde Nast, a publisher that I’m sure is struggling with the transition from print to digital. The users on Reddit who point out that CN is the big corporate owner should realize that Conde Nast might be asking for donations soon! The “four Reddit engineers”: they’re probably the equivalent of the old Tashman IT department.
We probably make more money than Reddit.
What’s funny is most users of Reddit are probably just promoting their website or brand. They’re just using Reddit to get web traffic. They don’t hang out at Reddit, bonding with fellow aliens or whatever! LOL!
Man, I feel like our content-driven efforts are far more fruitful.
I’ve been waiting for more social media companies to go out of business. Their model doesn’t make any sense!
Damian: It’s a great symbol of the point we have with similar sites. I still don’t think Twitter can be making the money it’s capable of, either. It’s very crazy to found a company and ingrain the “no ad” philosophy, and yet allow spammers and IM’ers to use it with no rules…lol…I still don’t think Facebook ever will reach its potential since it doesn’t sell anything. MySpace and Facebook wised up and at least make money with their internal ad networks and selling of e-mail addresses/newsletters with affiliate links. YouTube is loaded with ads now.
Look at sites like StumbleUpon, Mixx, Digg, Reddit, etc: would we give them money or buy something from them as regular surfers? If they are not making money on traffic, since those sites are SO necessary for internet marketing, perhaps they should charge a monthly fee to use them, however the bulk of the subscribers would be IM’ers, so the links would be spammy. Then someone else would come around and have a free site, and the cycle would continue.
The article sites make EASY money, though: it’s all adsense driven with FREE content from writers, with full rights to republish /sell anywhere. That’s why there are 900 fly-by-night article sites- anyone can set one up- it’s just takes a while, need a good server, and they usually get hacked by Russians.
And then the Firefox mentality…it’s so Ianare-like. The don’t even collect and steal info like Google does…lol
It’s the whole post-9/11 it’s evil to blatantly charge for products/services or run ads thang, in which Google is the master illusionist.
I’d like to conclude that I realize this is a minority opinion that will piss someone off. Then again, our majority opinions piss someone off. Guess ya can’t please everyone, so why even try?