[raydev]

> it would charge devs over 20x what a user actually cost/were worth

This is Selig's estimate based on not much info. Numbers like "20x" are completely made up.

[KptMarchewa]

Do you really think reddit spends 2.50 monthly per user on their 430 million MAU?

That would mean 13 billion dollars in expenses yearly.

[tornato7]

Reddit should realistically charge for lost revenue rather than lost expenses. Instagram makes $50B annual revenue on 2 billion users, or around $25/user/year. I'm certain that Reddit is making nowhere near that per user, but they're probably pricing their API along their most optimistic projections.

[shbooms]

I can't find the source but in some of the communication Selig released between him and Reddit a few days ago, Reddit themselves confirmed that their pricing is based on lost oppurtunity cost per user, not just expenses

[raydev]

I don’t really think of any number, because that would be silly. None of us know the answer nor can we confidently estimate what it is. Therefore any attempt to justify or argue costs by us is useless.

[deaddodo]

We can confidently assume it's not 26x their annual revenue. That would be silly.

[dsr_]

Based on the info that Reddit had disclosed earlier, it might be inaccurate today but it's not fair to say "completely made up" -- unless Reddit made it up.

[raydev]

No. It’s made up, because whether you claim it’s 20x or 100x or -5x, you can’t defend any of those numbers because of incomplete info.