1 . What is Reddit?

Reddit is a network of communities where people can dive into their interests, hobbies & passions. There's a community for whatever you're interested in - breaking news, sports, TV fan theories, science, history, geography, politics or a never-ending stream of the internet's cutest animals.

On the B2B side, Reddit serves as a platform where companies can advertise their products to community members of a specific subreddit, a community on a specific topic of interest.

2 . Who uses Reddit?

Anyone who wants an easy way to keep up with news and trends without needing to follow hundreds of different blogs and newsletters. By following the right subreddits, you can make sure you never miss an important story – and if there is something specific you want to keep up with (eg: r/Android), Reddit's search function makes it easy to track. Reddit has a very vibrant and fast-paced culture and community. The members can upvote or downvote content which they like, each subreddit has moderators chosen by the members themselves.

Reddit is also a good place to ask for advice, and expert opinions as many experts are part of various subreddits. Reddit is a good place to find links to stories that may have been buried by the mainstream media or by your social media feeds, which tend to be filled with more fluff than substance.

3 . What is the Core Value Proposition of Reddit?

Reddit's core value proposition to its users is a sense of community and the wealth of user-generated content. Users can engage in discussions, share content, and explore a vast array of topics.

Its core value proposition revolves around the following key aspects:

1. Customization and Personalization: Users can tailor their Reddit experience by subscribing to specific subreddits aligned with their interests. This customization ensures that individuals see content relevant to their preferences, creating a personalized and enjoyable browsing experience.
2. Global Reach: With a global user base, Reddit facilitates connections and conversations among people from different countries and cultures. This global reach broadens the scope of discussions and exposes users to a diverse range of perspectives and experiences.
3. Rich Variety of Content: From text-based discussions to images, videos, and links, Reddit supports a wide variety of content formats. Users can engage with content in ways that suit their preferences, whether they prefer thoughtful discussions, humorous memes, informative articles, or visual content.
4. Anonymity and Pseudonymity: Reddit provides users with the option to participate under pseudonyms, fostering a level of anonymity. This feature encourages open dialogue and sharing without the constraints of real-world identities, creating a space where users feel more comfortable expressing themselves.
5. Voting System: Reddit's upvoting and downvoting system allows users to collectively curate content. Popular posts rise to the top, while less engaging content is pushed down. This democratic approach ensures that the most relevant and interesting content gets visibility within each community.
6. Open and Free Expression: Reddit promotes open and free expression of ideas. Users can share their thoughts, opinions, and experiences without stringent content restrictions. This emphasis on free expression contributes to a diverse range of discussions and perspectives on the platform.
7. Community-Driven Content: Reddit is built on the foundation of user-generated content. It hosts a multitude of communities, known as subreddits, each dedicated to a specific topic or interest. Users can join, contribute to, and shape these communities, fostering a sense of belonging and shared interests.

4 . Is Reddit ready for monetization?

🧪 Litmus Test

1. Retention
   This module would suggest based on analytics on the users growth/retention if Reddit is ready for monetization. At a general case, if the Growth/Retention demonstrates a flattening line, it would suggest Reddit is at the right user base for monetization.
   
   *As we don't have real time data on the user retention, we will be making a few assumptions based on the information found on Google*
   
   
   Source
   As per the Data, as of 2022 the monthly active users has flattened at 430 Million
   
   When looked at the data of US based user (USA has the highest number of reddit users)
   There's a small smile curve and the line flattens at the end at 164.4 Million users.

2. Deeper Engagement
   This test would help segment the users in to Casual, Core and Power users by defining their usage of Reddit. For monetization to work, the demographics of Core and Power users should be at least 50% of total users. For this we have taken a small sample of 50 Users.
   
   

   Question	🤷‍♂️ Casual	🙅‍♂️ Core	🙋‍♂️ Power
   Type of User	One-time lurker, occasional poster	Regular user, active in niche communities	Power user, moderator, and contributor
   Frequency	1-2 times a week	5-7 times a week	Multiple times a day
   Products Used	Mainly browses posts and comments	Engages in discussions, posts content	Actively participates in discussions, posts content, moderates
   JTDB (Job to be Done)	Stay informed, entertain, occasional participation	Discuss interests, share content, participate actively	Lead discussions, moderate communities, contribute significantly
   Use-case	Passive consumption, occasional interaction	Active participation, content sharing	Proactive contribution, community leadership
   Collaboration	Minimal or none	Limited (e.g., Upvoting, commenting)	Moderates, collaborates extensively
   Number of Editors	N/A	N/A	1+ (moderator role)
   Percentage of Users	30-35%	55-60%	5-10%

   As per the cohort data, more than 50% Users are Core and Power Users
   
3. Willingness to Pay
   

   Question	Casual User Answer	Core User Answer	Power User Answer
   Do you currently spend money on Reddit?	No, I haven't spent money on Reddit so far.	No, I haven't spent money on Reddit so far.	Yes, I occasionally spend on premium features or awards.
   Are you familiar with Reddit Premium or Coins?	Yes, but I haven't explored them much.	Yes, and I might consider Reddit Premium for ad-free experience.	Yes, I actively use Reddit Premium and Coins for awards.
   Do you actively use other social media platforms?	Yes, I use them casually for staying updated.	Yes, I actively use them to follow my interests.	Yes, I extensively use them for content sharing and networking.
   Would you consider paying for a premium Reddit membership?	I might consider it if it offers additional perks.	I would consider it for an enhanced experience.	Yes, I already have a premium membership.
   What is your budget for a premium Reddit membership?	Around Rs.150 per month.	Between 200 to 400 per month.	Around 500 or more per month for advanced features.
   Preference for Pricing Structure:	I prefer a simple and fixed pricing structure.	I'm open to tier-based pricing for more options.	I prefer a straightforward single pricing structure.
   Openness to Paying for Additional Features:	No, I prefer an all-inclusive fixed cost.	I might consider it if it adds significant value.	Yes, I'm open to paying more for exclusive premium features.
   What would make you pay more?	Additional exclusive community access or events.	Advanced analytics or data insights for niche interests.	Exclusive access to premium content and personalized features.

Based on the Above answers, we can monetize Reddit.

5 .Substitute Pricing

A. What core problem does the product solve?

Reddit addresses the need for diverse and community-driven content aggregation, discussion, and sharing platform. Users seek a platform that allows them to engage with a wide array of topics, opinions, and interests, fostering a sense of community and shared knowledge. Traditional social media platforms may not provide the same depth, authenticity, and breadth of content as Reddit. Reddit acts as a centralized hub where users can find, discuss, and contribute to an extensive range of topics and communities, offering a unique and user-driven content experience.

B. What are the other ways to fulfill the same use case?

6 . Design Pricing

A. Who Do We Charge:

B. When to charge?

To strategically introduce subscription plans on Reddit, focusing on key factors—Time, Money, Dopamine, and Efficiency—can help enhance the perceived value during critical user interactions:

C. What to charge for?

Aligning with the core value proposition of Reddit, the ideal features to monetize would revolve around enhancing user interactions, content consumption, and community engagement. Here's a breakdown of what to charge for on Reddit:

1. Access to Premium Communities: Charge users for exclusive access to premium or specialized communities, fostering high-quality discussions and curated content.
2. Enhanced Content Consumption: Offer a subscription plan that provides an ad-free experience, faster loading times, and priority access to trending content, enhancing overall content consumption.
3. Custom User Flairs and Emotes: Monetize personalized user flairs and emotes, allowing subscribers to stand out and express themselves uniquely within the community.
4. Early Access to Features: Introduce a tiered subscription model where higher tiers offer early access to new features, ensuring dedicated users experience platform innovations first.
5. Exclusive Awards and Recognition: Charge for access to premium awards and badges that users can use to recognize and appreciate exceptional content, creating a sense of exclusivity.

D. How much to charge?

Considering the competitive landscape and the unique value proposition of Reddit, the proposed subscription plans aim to offer a range of features at different price points. The pricing plans for Reddit's subscription model are designed to cater to various user preferences and usage patterns:

E. System of Pricing

Reddit's pricing model would follow System 1, providing clear and detailed information about each plan's features. It aims to ensure transparency for both first-time users and repeat subscribers. Each plan will be accompanied by a hyperlink to the Terms of Service (TOS) and Privacy Policy for user reference.

Pricing page design

AND WE’RE DONE!