How Does Discord Make Money?
Discord is a communication platform that has become increasingly popular in recent years, particularly among gamers and streamers. The platform allows users to communicate with one another through voice, video, and text, and to create private or public servers for their communities. While Discord’s services are free to use, many people wonder how the company makes money. In this article, we’ll explore the different ways Discord generates revenue and how they plan to continue doing so in the future.
Discord’s Advertising Revenues
Discord generates a significant portion of its revenue through advertising. The company partners with brands and sponsors to advertise their products or services within Discord’s platform. Advertisers can target specific servers or audiences, allowing them to tailor their message to the right people. Popular servers with large followings tend to be the most attractive to sponsors, as they have a larger reach and engagement.
One example of a successful advertising campaign on Discord was during the 2019 League of Legends World Championship. Discord partnered with Mastercard to create a server dedicated to the tournament. Users who joined the server could participate in a variety of activities and challenges related to the tournament, with the chance to win prizes such as VIP tickets and in-game currency. The server had over 100,000 members and was a great success.
Discord Nitro
Discord Nitro is a subscription service that offers users extra features and perks not available to non-paying users. Some of the benefits include higher quality audio and video, animated emojis, a larger file upload limit, and access to a library of games. Nitro costs $9.99 per month or $99.99 per year.
Nitro generates revenue for Discord by charging users a monthly or yearly fee for access to its premium features. This service has become increasingly popular among Discord users, with thousands of users upgrading to Nitro every day.
Games and Gaming-Related Products
One potential future revenue stream for Discord could be selling games and gaming-related products through their platform. Discord has a large user base of gamers, and many of them use the platform to communicate with one another while playing games.
If Discord were to start selling games or gaming-related products, it could leverage its existing user base and loyal following to market these products effectively. For example, they could offer special discounts or promotions to users who purchase a game through their platform. Alternatively, they could provide exclusive access to certain games or content to users who have Nitro.
Platform Fees
Another potential revenue stream for Discord could be implementing platform fees. Discord could charge fees for certain types of transactions, such as fees for server transfers or for processing payments. While there are potential benefits to implementing fees, such as generating additional revenue and investing in new features, there may also be drawbacks, such as dissuading users from using the platform or damaging the community’s vision of being free and open.
Examples of other platforms that generate revenue through fees include Patreon, which charges a platform fee of 5% plus a payment processing fee for every pledge made on their site, and Etsy, which charges a listing fee and transaction fees for sellers on their site.
Partnerships
Another way that Discord could generate revenue is through partnerships with other companies or organizations. Discord could partner with brands or influencers to advertise their products or services within their platform. Alternatively, they could collaborate with other companies to create new features or services for their users.
One example of a successful partnership for Discord was their collaboration with Spotify. Discord allows users to connect their Spotify accounts to their Discord accounts to share what they are listening to with their friends on Discord. This partnership helps Discord appeal to music lovers and increases user engagement on their platform.
Conclusion
Discord’s revenue streams currently include advertising, Nitro, the potential for game and gaming-related product sales, and partnerships. There is also the potential for implementing platform fees and seeking other revenue sources in the future.
While some may wonder whether Discord can continue to generate revenue with its current business model, the platform’s growing popularity among both gamers and non-gamers makes it an attractive partner and advertising space for companies and influencers alike.
We hope this article has shed some light on Discord’s revenue streams and business model. If you haven’t already, we encourage you to check out Discord’s services and support the platform.