Without cash flow, how far can the site go? Someone needs to pay the bandwidth/server bill. Not to mention it costs time to run a site. If you are working full-time at another job (because you aren't bringing any money in), you won't have any time to work on it.
Reddit succeeded largely because the company that bought them is making money elsewhere.
>> Reddit succeeded largely because the company that bought them is making money elsewhere.
Such a nonsense makes me angry. Surely you've heard about companies called Google, Facebook, Linkedin, that succeeded without being bought and for a long time not making a profit.
The difference is Reddit isn't particularly looking for profit. Unless they completely change their business and way of doing things (unlikely to happen), they probably will never make a profit.
Agreed. If they are re-investing money to grow the product, that might be why they aren't currently profitable. That doesn't indicate a lack of success in my book.
I think that the endless stream of stories about websites shutting down and deleting all user content has made it clear to HN users that clearing a profit is pretty important.
Look back in time. Read up on other things that had a massive userbase, but were unsustainable.
Checkup alladvantage - they paid people to surf. Had millions of users, but ultimately failed because their "business model" was idiotic.
Getting millions of users is pretty easy if you pay them to be a user. Someday though, it's only worthwhile if you can build a sustainable business which at least doesn't lose money hand over fist.
If Reddit hadn't got bought and supported by other profitable businesses, I doubt it would have survived.
AllAdvantage was great for free money as a teenager. It only took a few minutes to slap together a VB application to move the mouse a few pixels every minute. I made a few hundred dollars from them while I slept.
That was more of a general statement than a comment specifically on reddit's position.
I can make millions of dollars selling condom wrappers, but just because I have made millions of dollars does not mean that I have done something important. I may catch quite a bit of hate for this, but a large portion of HN's content is on things that make money, but are not truly important.
I think the mantra from the startup community is often:
1. Make money doing whatever it takes. eg come up with some crappy website, sell it to google, then shut it down.
2. The money problem is solved!
3. Spend money solving world hunger, diseases, philanthropy.
Reddit succeeded largely because the company that bought them is making money elsewhere.