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Discovering Reddit: A Comprehensive Guide to the Platform

What is Reddit? As the world becomes increasingly interconnected, more online platforms that allow for communication, collaboration, and sharing are becoming popular; Reddit is one of them.

For many, Reddit is the embodiment of a social news and entertainment platform. It allows users to share the content that they find interesting and informative, as well as engage in discussions with other users in various niches.

Reddit offers its users a wide range of possibilities, but it can also be overwhelming for newcomers to navigate the platform. This article seeks to shed more light on what Reddit is all about, its features and functionalities, its business model, and how it operates.

Description of Reddit

Reddit is a social news and entertainment platform that allows its users to discover, share, and discuss content online. Users can submit links, photos, and videos that they find interesting, informative, or entertaining.

The content is then sorted into different categories known as subreddits that revolve around various topics, from politics and science to memes and animal videos. Users have the choice to upvote or downvote content posted on the platform, which indicates how the community rates the content submitted.

The platform also uses a karma point system to show how active and engaged users are within the different subreddits. Moreover, users can purchase digital coins using real money to provide support to creators or gift them to other users.

Features and Functionality of Reddit

To access Reddit, users need to create an account on the platform. After creating an account, they can customize their user profile and be able to follow specific subreddits that pique their interest.

A subreddit is a customized forum where users can post, comment, and vote on content specific to the topic. One of the unique features of Reddit is that users can create and moderate their own subreddits.

Users can, therefore, create communities around specific topics, and those who have similar interests can join and engage in discussions and share content. Each subreddit has its own set of rules and moderators who ensure that content posted aligns with the subreddit policies.

Redditors can award content creators with digital coins, called “awards,” to recognize their contribution and excellent work. However, it is important to note that awards cost real money, and the profit generated by the platform is shared between Reddit, the content creator, and the award giver.

The Reddit Business Model Explained

Community at the Centre

Reddit has established itself as an ecosystem built around community and user-generated content. The content submitted to the platform is created by its users and not by a specific team or group of individuals.

Therefore, the community and users have a significant say in the kind of content that is shared and the direction that the platform takes. This engagement among the community members makes it possible for Reddit to moderate and manage the platform at minimal costs.

Supported by Content Moderation

Reddit is free to use and generates its revenue from advertising, selling merchandise, and awards. However, it is crucial to maintain a reasonable level of quality and relevance, and this poses a challenge because there is no central control over the content being posted.

Therefore, the platform relies on volunteer moderators who oversee the various subreddits and ensure that content aligns with the rules. Reddit also employs an automod system to automate moderation based on specific keywords and rules.

In addition, the administrative team at Reddit occasionally checks the moderation logs to ensure that subreddit moderators are following the set guidelines.


With over 330 million monthly active users, Reddit is a unique platform with a vibrant community that shares, discusses, and creates content. It offers endless possibilities for engagement, from sharing content and voting on it to creating and moderating a community.

Reddit’s business model is user-driven, and its success lies in its ability to support content moderation, which ensures that the platform is relevant, engaging, and able to maintain a reasonable level of quality. Reddit remains one of the most popular social news and entertainment platforms, and its value lies in its ability to foster a sense of community among its users.


Partnerships are essential for any online platform to remain relevant and competitive. Reddit understands this and has formed a number of partnerships with leading companies in their respective industries to boost user growth and engagement on the platform.

Partnerships for User Growth and Engagement

Tagboard is one of the companies that Reddit has partnered with to increase user engagement on the platform. Tagboard integrates with Reddit to provide a social media aggregation platform that facilitates the tracking and sharing of content from various social media platforms.

Another partnership that Reddit has entered into is with NewsWhip, a content discovery and analysis platform. Through the partnership, Reddit’s content is displayed on the NewsWhip dashboard for data analysis and reporting, enabling the platform to gain insights that help with content creation and user engagement.

GIPHY, the popular animated GIF platform, has also partnered with Reddit to make its vast library of GIFs available to the Reddit community, making it easy for users to share GIFs in their posts and comments. Dubsmash is a social media platform that allows users to create and share short-form videos.

Reddit recently acquired Dubsmash to enable the platform to incorporate video and audio features into subreddits to enhance the overall user experience. Acquisitions and

Partnerships for Growth

Apart from partnerships with leading tech companies, Reddit has also made strategic acquisitions to enable growth and innovation on the platform.

One example is the Dubsmash acquisition, which expands the platform’s capabilities, provides Reddit with an existing user base, and allows for the integration of video and audio features. The acquisition was also intended to help Reddit appeal to a younger, more diverse audience.

Additionally, Reddit has acquired a number of machine learning startups to improve the platform’s functionality. One example is the 2018 acquisition of AI startup, DeepMind.

The goal with this acquisition is to explore ways of using machine learning algorithms to improve the platform’s features, such as automated moderation and content recommendation systems. How Does Reddit Make Money?

Reddit uses a variety of revenue streams to generate income. These include advertising, subscriptions, and digital goods.

Advertising is one of the most significant revenue sources for Reddit. The platform offers a range of ad formats, including promoted posts and premium takeover units.

Sales capability is another aspect of its advertising model; advertisers can purchase ads directly or via programmatic platforms like Google Ad Manager. Subscriptions are another way Reddit generates revenue.

The platform offers two subscription services: Reddit Gold and Reddit Premium. Reddit Gold provides users with perks like exclusive emoji and ad-free browsing.

Reddit Premium takes things a step further and includes all the features of Reddit Gold, plus access to the premium-only subreddit and monthly coins to spend on awards. Digital goods, such as Reddit Coins and NFTs (non-fungible tokens), have also proven to be a profitable revenue stream for Reddit.

Reddit Coins can be used to gift awards to other users or purchase them for oneself. NFTs, like CryptoSnoos, are unique, digital collectibles that can be bought and sold on the collectible marketplace, making it a new way to monetize Reddit’s vibrant community.

In conclusion, partnerships and acquisitions have played an essential role in Reddit’s growth and innovation. The platform has entered into strategic partnerships with leading companies in different industries to enhance user engagement and growth.

Moreover, its acquisitions, such as Dubsmash and DeepMind, have enabled the platform to expand its capabilities and appeal to a younger, more diverse audience. Finally, Reddit has a diversified revenue model that includes advertising, subscriptions, and digital goods that allow it to monetize its vast user base.

Reddit’s Revenue

Reddit is a privately owned online platform, and as such, its revenue figures are not disclosed to the public. However, this does not mean that the company is not generating significant revenue.

In this article, we will explore Reddit’s revenue in more detail, including its lack of disclosed revenue figures and performance, potential IPO plans, fundraising, layoffs, and valuations.

Lack of Disclosed Revenue Figures

As a privately owned company, Reddit is not required to disclose its revenue figures to the public. Hence, it is challenging to determine the exact figure of revenue generated by the platform.

However, it is known that Reddit is profitable and generates revenue through various sources, including advertising, subscriptions, and digital goods. Reddit was acquired by Cond Nast in 2006, but by 2011 the original creators, Steve Huffman and Alexis Ohanian, had bought back Reddit for a sum between $10 million and $20 million, which means the platform is currently owned by Advanced Publications, the parent company of Cond Nast.

However, the exact amount Advanced Publications paid for Reddit has not been disclosed, and the company continues to operate privately and generates income through its monetization model. Reddit’s Performance and Potential IPO

Reddit has experienced significant growth in recent years, especially during the COVID-19 pandemic, which has resulted in an increase in user engagement and growth.

In fact, the company reported a significant surge in traffic at the beginning of 2021, attributed primarily to the GameStop stock frenzy. Nevertheless, despite the pandemic growth, the platform has faced challenges such as an advertising slump that impacted revenue.

According to recent reports, Reddit is planning to go public in the near future, which means the company will be required to provide more information to the public, including its revenue figures. The potential IPO would provide the company with additional funds and resources to expand and explore new avenues of monetization, such as partnerships, acquisitions, and new ad formats.

Fundraising and Layoffs

Since the acquisition by Cond Nast, Reddit has raised more than $550 million from investors, including Andreessen Horowitz, Sequoia Capital, and Tencent. The company has also expanded its workforce to over 1,000 employees, with plans to extend further.

However, in the wake of the COVID-19 pandemic, Reddit has had to take tough measures, such as layoffs aimed at cost-cutting. While some of the layoffs had been planned before the pandemic, others were attributed to the pandemic’s economic impact, which impacted the advertising market significantly.


Reddit was last valued at $6.0 billion in February 2019, following the closure of a funding round that raised $300 million. However, it is worth noting that valuation figures are often subject to change based on a variety of factors, including economic conditions, market trends, and investor sentiment.

Furthermore, with rumors of a potential IPO, Reddit’s valuation is likely to be impacted significantly, as investors reevaluate their interest in the platform. If the company achieves a successful IPO, its valuation could increase significantly, especially if the public market is favorable towards internet-based companies.


In conclusion, Reddit is a profitable and private online platform, and as such, its revenue figures are not publicly disclosed. Despite this, the company generates significant income through advertising, subscriptions, and digital goods, among other sources.

Reddit has been experiencing rapid growth in recent years, with plans to go public in the near future, which will provide additional funding and resources for expansion. However, the company has faced challenges such as layoffs attributed to economic impacts, and its valuation is subject to change depending on market conditions and trends.

In summary, Reddit is a social news and entertainment platform that allows users to share and discuss content. While its revenue figures are not publicly disclosed, Reddit generates income through various sources, including advertising, subscriptions, and digital goods.

The platform has experienced significant growth but also faced challenges, such as an advertising slump and layoffs during the pandemic. With plans for a potential IPO, Reddit’s valuation could increase, providing additional resources for expansion.

The importance of partnerships, acquisitions, and strategic planning is evident in Reddit’s approach to user growth and revenue generation. Overall, Reddit’s position as a leading online platform highlights the importance of community engagement and diverse revenue streams in sustaining success in the digital world.

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