Discord and Twitch have a funding model that would probably work great for Reddit. Allow users to pay a small fee to upgrade their subscription to a subreddit - maybe $1.50/mo per sub or $15/mo for all subs. The upgrade includes access to special emojis for the sub, a special flair or re-colored username, and no ads on the upgraded sub. A portion of the money would go towards funding moderation for the sub, and Reddit could pocket the rest.
Decent perks for an eye-watering price, and you don’t even get encrypted messages to boot.
That creates bad incentives, though. A streamer I mod for once suggested something similar, I told them I’d quit modding in that case. If it’s a job, it stops being a hobby.
There is a name for this effect (it's no cognitive dissonance) I think - I recall reading about it in Freakonomics, wherein they discuss it in the scope of parents being "fined" for picking up their children late. The fine actually validated the tardiness as part of a business transaction - instead of being a social imposition - and actually led to more delays, not fewer
Are you referring to incentives? Specifically turning a social incentive to a market incentive?
> The fine actually validated the tardiness as part of a business transaction
It should also be noted the parent’s monthly bill was around $380, and the fine was only around $3. So even being late every workday in a month was only an additional $60. And I’m sure some of those parents would happily spend that to be rid of their children for a little bit longer.
I do wish it was recorded whether the length of tardiness increased as well, and what the mean and mode were. Whether parents started to abuse the time or not, in effect milking the daycare for care, is an important data point as well.
Admittedly without quoting it does look out of place. I just edited it to fix that. Thank you!
The most (in)famous example in the US is the American Red Cross following the US forces in Europe during WW2 beginning to charge a few cents for donuts that they had been giving away for free. While they were still inexpensive compared to their usual price at US donut shops, it was a huge change in the relationship that ended up souring a lot of soldiers towards the Red Cross.
The economists have their own name for many phenomena that come down to the same thing that the psychologists would predict. Hence the rise of "behavioral economics" to converge the fields.
If I pay you just a little bit for something you were doing, it may not really register much because it isn't enough money to really do anything with besides buy a meal or a new toy here and there or something.
If I pay you enough for it to be considered a job, that brings in a whole bunch of new expectations on both sides. You may expect to be paid a fair wage compared to what you previously did, to have a good career path, to do something that looks good on a resume, to have a good work-life balance, etc. And they may expect a certain stable and reliable productivity level, advanced notice for any time off, etc.
Then they killed it.
Twitch's model works great for creators but not for Twitch and as a result Twitch has been working hard to force their creators to run more ads.
https://www.reddit.com/premium
They don't revenue share with moderators though, because as far as Reddit is concerned, fuck moderators.
I’m unsure why Twitch would keep squeezing every dollar in insane ways unless their funding model isn’t working either.
therefore they don't exist after IPO.
[1] https://techcrunch.com/2023/06/01/fidelity-reddit-valuation/
If by "growth" and "metrics" you mean they have to figure out how to make money to sell themselves to investors in an almost-hostile financial environment, then yes, I agree.
Beginning of the end and all that. You can't sell "community". IPO means ads, ads, ads and dodgy strategies like you describe above.