Hacker News new | ask | show | jobs
by ryanmerket 1095 days ago
It's both. They are monetizing the data with LLMs AND they are still enabling 3P developers to monetize their users by charging a small monthly fee.

Let's say Apollo, Relay, or RIF charged $2/mo per user. Would that be enough to cover their expenses?

Looking at Reddit's now application programming interface pricing, 100 calls per day per average user would cost $0.72 / month.Google/Apple App Stores take a 15% commission on subscriptions so a total per month per customer average cost would be $0.83 cents.

That means the devs would make $0.98 cents per month per user on a $2 subscription fee. (30 cents to Google, 73 cents to reddit, 98 cents left to pocket).

With this user base, even if only like 20,000 people subscribe the devs stand to make $20,000 every month in profit.

Apollo has 1.5 MILLION monthly active users. With a 50% conversion rate (meaning half of the users decide to subscribe) and charging $2.00 a month, he would make $750,000 / PER MONTH. That's with the new Reddit fees.