Also, what's the deal with him not wanting to start a competitor? That's like his only bargaining chip in this situation, and he's just throwing it away because he feels overwhelmed and wants to make iOS widgets. I totally sympathize with him and how this situation is probably incredibly stressful, but when you have 50k+ subscribers per year + millions of happy loyal users, you gotta start bringing in outside people to help with these things. He's just letting a lot of people down.
I don't mean to trash the guy, but I hope that the other third-party apps see this example and change their response to find a better outcome for their users.
If they wanted him to pay $20 million, they'd certainly have given him much better than a brief phone call.
But that's the point. They're revealing with their actions that they don't actually want him to pay the money. What they want is to shut it down. Charging a sum of money that they know he won't pay is just an easy way to do that.
I pay Apple more than a million a month and I don’t even have a contact email.
Just saying, a Christmas card would be nice.
He's made it abundantly clear why he doesn't want to do that, who are you (or anyone else but him) to say "No you're not allowed to have opinions, you MUST create your own alternative"?
> I've received so many messages of kind people offering to work with me to build a competitor to Reddit, and while I'm very flattered, that's not something I'm interested in doing. I'm a product guy, I like building fun apps for people to use, and I'm just not personally interested in something more managerial.
> These last several months have also been incredibly exhausting and mentally draining, I don't have it in me to engage in something so enormous.
Also bad from a business perspective. It likely would cost way less than 10m to build a competitor, functionality wise.
Reddit from 2017 or so is open source!
It’s pretty clear that there’s no negotiating left, so I’m not sure what relevance this has anymore. A few days ago? Yeah maybe.
If the CEO is maliciously accusing you of threatening them, then there’s nothing left to negotiate. The relationship is beyond broken.
> Also bad from a business perspective. It likely would cost way less than 10m to build a competitor, functionality wise.
He has already made it clear he’s not interested in building a competitor (the quote is literally right there in the comment you replied to), so, once again, what’s your point?
It’s plainly evident that Christian is done, and I don’t blame him.
The RIF and Sync devs are too, and I’m sure all the other apps will soon announce shutdowns at the end of the month too.
Because some people don’t want to! And that’s okay.
Would you want to moderate Reddit? I get that Apollo is in a good position to take their users with them, but it's not like it's going to be easy to build a Reddit when what you've made so far has been a frontend for Reddit and some mobile widget spin-offs.
Many of us can make a frontpage for hacker news in a few hours, some might even be able to grow a userbase on it but that doesn't mean we can do what dang does.
But I would enjoy HN more with a soupcon of joking (currently considered zero-value). I benefit from my bread being leavened, I like programming tutorials with humour. So it's understandable why people might want to change the policy.
> ... I've finally come to the conclusion that I don't think this situation is recoverable. If Reddit is willing to stoop to such deep lows as to slander individuals with blatant lies to try to get community favor back, I no longer have any faith they want this to work, or ever did.
If a bargaining chip is only useful in making a deal you've decided cannot be made, why bother holding onto it? Better to tell your fans outright that you're worn out and not interested.
I suspect that both reddit and apollo know that most of the content generation happens on Reddit controlled properties.
Apollo users probably do not generate enough content to sustain a reddit-like website.
In addition to what everyone else has said, he really has 1 month if he has any chance of siphoning off reddit users.
Yeah, what's the deal with this iOS developer not wanting to start a competitor to checks notes one of the largest websites in the world? Surely you just up and did that last week, it's no big deal.
I guess I should start getting used to saying "Jesus christ, HN" now that I won't be saying "Jesus christ, Reddit" anymore.
That is not at all the same as building an iOS client using an API as a one man show (or 1-3) and directly selling that.
Yeah, the conversation is so cringe. Why is he beating around the bush so much ? He wants to sell, shut down, or whatever for a $10M payout. It sounds easy to make that proposition. Instead, he uses terrible verbiage like, "go quiet, I'm joking, opportunity cost, Bob's your uncle, yada yada". Why is he so terrible at talking ? Nothing in the call resembles a sales pitch if he is actually trying to sell a product for $10M.
He's a 20-something year old developer. This isn't his comfort zone and did not expect himself to be in this position.
I know I would be terrible if I was in his shoes.
The response seems to be a resounding no.
This call was awful to hear as an entrepreneur. He is not at all clear about what he wants, and I think he's honest when he says it's "mostly a joke" - I'm getting the sense he threw out a strangely-worded scenario hoping that he could perhaps get some money. If he was serious about getting money, and he's primarily a software developer and not a negotiator, it would've been lovely if he had gotten proper counsel for this negotiation.
He is asking for clarification, something you do when you have a good business relationship with someone.
> He wants to sell, shut down, or whatever for a $10M payout.
He doesn't. He is saying that 20$M is clearly overpriced and that if it was true then reddit would come up with a ludricous number like 10M to make that API be turned off. He just uses quiet because reddit described the API use as Loud.
It's not an offer, it's calling someone's bluff out.
Think in poker someone says "my hand is worth 20 million" and you got pretty good cards you would tell them "go all in because I am gonna keep covering whatever you raise" and then they do not go All In, you got a pretty good case to think their initial comment was not true.
From the post:
> I bring this [audio recording] up for two reasons: ... It shows why I've finally come to the conclusion that I don't think this situation is recoverable. If Reddit is willing to stoop to such deep lows as to slander individuals with blatant lies to try to get community favor back, I no longer have any faith they want this to work, or ever did.
He mentions that it was spez AKA Steve Huffman the CEO of reddit. The call really does sound amateurish and the joke/negotiation tactic/money request/??? was really unprofessional but Steve seems to have completely misconstrued the whole interaction and blown up at him. I would say this is worse of the CEO to use this to spread slander especially when he already apologised for misunderstanding Selig and then privately walked it back
Christian is acting in a surprisingly civil manner despite the repeated lies and smears made by Steve and others at Reddit. I see that as being professional.
Also, what things are priced at is not what they cost …
> Also, what things are priced at is not what they cost …
So if that’s the best argument in favor of Reddit, then it’s Reddit that’s being illogical. Or to be more straight, lying.
> Why go for $10m if there is no need to because you have already adjusted your own pricing upwards.
Because $20M is neither the amount Christian was earning, nor the cost that Reddit was paying to provide API access. Steve explicitly said it was a lost opportunity. There was simply no way that Christian could’ve paid that insane price. However, Reddit could’ve earned $20M themselves per year by acquiring Apollo. If the $20M opportunity was even remotely true, that is.
Reddit pays Apollo 10M, starts serving their ads in the app, and now rakes in 20M/year without any extra effort.
Conversely, now they need to convince all the angry users of Apollo to come back to use their shitty website/app, something that will never happen. A lot of people that aren’t even using Apollo are going to be angry at the mistreatment and leave the site altogether. On the whole it’s quite likely that Reddit’s losses will amount to more than the 10M they’d have to pay once to get a ton of money in the future.
They are. They're just pretending they aren't. No one is going to pay the amount they're charging.
There's a reason labor is losing power to owners and it's because they aren't having fights like Christian.
Christian is showing how to give our children a future.
It's really confusing. He wants Reddit to pay $10 million so he isn't "loud" with API usage? He wants them to buy and takeover the app? He's wants a payment to shutdown? Is he even serious about any of this because it sounds like he's joking about it in the call.
Either way, that's not a great deal for Reddit. They might as well charge the $20 million, and if he can't find a way to pay it then Apollo shuts down for free and the majority of users return to the official Reddit site/app. There's no benefit to paying $10 million.
The call was a failure between the two parties and likely destroyed any future negotiations. I think the best suggestion was from another user here. Only allow Reddit official subscribers to use third party apps. Reddit can charge users whatever they want, and app developers can monetize their apps however they choose.
Apollo has no leverage here unless there is strong evidence most of the Apollo users will leave Reddit if the app shuts down. I don't believe they will. The other potential leverage is the upcoming subreddit blackouts, or hinting at taking the Apollo users to start a competitor. The developer said they are not going to build a competitor (that was a mistake, they shouldn't have revealed that card), so I think the blackouts are the only chance of lowering API costs.
If Apollo's userbase was actually generating $20mm/yr, acquiring Apollo for $10mm is a no-brainer. But if that were the case, keeping Apollo running as it is would also work.
Obviously this is not the case. Apollo is confusing costing $20mm with generating $20mm.
I think you underestimate the fallout here.
I don’t know if I’ll quit Reddit entirely, but I’m certainly done engaging at the level that I use to. I no longer trust how Reddit will decide to use my data or how they’ll pull the rug from me. They’re pre-IPO and already getting desperate. Shits going to hit the fan when they IPO and investors expect constant growth.
Lemmy is developed by and its main instance run by tankers. We need a healthier alternative.
> Tankie is a pejorative label for communists, particularly Stalinists, who support the authoritarian tendencies of Marxism–Leninism or, more generally, authoritarian states associated with Marxism–Leninism in history.
> ...
> The term is also used to describe people who endorse, defend, or deny the crimes committed by communist leaders such as Vladimir Lenin, Joseph Stalin, Mao Zedong, Pol Pot, and Kim il-Sung. In modern times, the term is used across the political spectrum to describe those who have a bias in favor of authoritarian communist states, such as the People's Republic of China, the Syrian Arab Republic, and the Democratic People's Republic of Korea. Additionally, tankies have a tendency to support non-socialist states if they are opposed to the United States and the Western world in general.
---
Or a quick way - if you think of countries that have military parades with tanks rolling down city streets, those are supported by "tankies".
Does it matter though if Lemmie is run by such a group when you could potentially spin up your own instance where you enforce totally opposing values?
(alas, its shut down... but it used to be that if you looked at the 'moderated servers on a mastodon site you'd find parler in that list which was a modified mastodon instance that no one else wanted to talk to)
If your content is sufficiently shunned from the main instances/interchanges how discoverable would your posts be? Or would you go "ok" and accept the political or philosophical lean of the main site so that your content got syndicated/federated to others?
Obviously there's nothing stopping from some instances from creating closed or gated content, but the public facing ones with like 10-20 years of gardening input freely given by end users can never be taken away from the community, which is what's happening with Reddit and has happened with IMDB and countless others.
Any thread about Google Search on here is filled with people saying they have to do "site:reddit.com" to get accurate results. I've never seen another site used in that example. I'd love to be proven wrong on this because it means there's some great internet resource I've been missing out on.
Those were the people using Apollo in the first place.
1) ok so, according to you I’m costing you $20M/year in API load
2) How about you pay me $10M which is 6 months of your cost, and I turn off the $20M/year burden immediately.
3) you make your money back in 6 months and within a year are up $10M
The problem is Apollo does not cost Reddit $20M/year lol
Your first sentence misrepresents what the Apollo dev said. Actually, it's the exact same misrepresentation that the Reddit CEO knowingly made in public.
First off, it's abundantly clear that the Apollo dev wasn't actually demanding money. It was a pointed statement that revealed the CEO wasn't being honest about the costs.
The CEO, in contradiction with publicly available data, claimed that Apollo was costing Reddit $20 million per year in lost opportunity. So the dev jokingly offered to sell Apollo for half that price. Then Reddit would be able to recoup the cost in half a year and gain an additional $20 million yearly. What a great deal, right? Except they both knew that the $20 million price tag was complete bogus.
Further I wouldn’t be trusting a hot take from ~100 points GuestXXXXXX at this point of the PR dumpster fire cycle.
I disagree, I think the Apollo dev would have happily taken the $10 million.
> Then Reddit would be able to recoup the cost in half a year and gain an additional $20 million yearly. What a great deal, right? Except they both knew that the $20 million price tag was complete bogus.
The $20 million price is irrelevant here. Reddit doesn't need to pay to acquire these users. They are Reddit users (they're registered there, and Reddit knows everything about them). They can close down Apollo and they'll get almost all the users back for free.
If Apollo had a standalone community, then it's easy to calculate the value of a user, and a fair price for acquisition. But, that's not the case here.
Don't take this the wrong way, I'm not siding with Reddit and I think both sides are losing here due to their poor management.
That doesn't mean he was demanding money.
> If Apollo had a standalone community, then it's easy to calculate the value of a user, and a fair price for acquisition
I do agree it's difficult to calculate the value of a user in this case.
Yes, Apollo users are Reddit users, but they are specifically Reddit users who don't use Reddit's official clients. The question is how many of those users will move to Reddit's official app after June 30, and how many will look for alternative platforms that aren't so manipulative and abusive. I for one have deleted my Reddit account and won't be going back.
I think you're in the minority. If there was a well known Reddit alternative at the moment, I could see Reddit having their Digg moment and losing a large part of the community. Subreddits could blackout and threaten to leave to the other website. That is something that would be taken seriously. Dozens of subreddits with 1-50 million users potentially jumping ship at once. If you had the right platform, with the right attributes and reputation, the stars would be perfectly aligned to take in a mass number of Reddit users. But, no one is in the right position to catch the ball at the moment (I don't claim it's an easy position to be in). It's actually unfortunate, because these moments don't come too often and I believe it allows Reddit to make these changes with little repercussions. Fans of old.reddit.com better watch out, I bet it's on the chopping block within the next year.
It was the same with Facebook: You want me to use my real name? I'm gone. Never used Facebook again. Specifically in Germany (where I would argue the population values privacy more than in other nations) that was a deal breaker for a lot of them when they started enforcing that policy.
(This example is not about a platform but more of an example of quitting a product because of "bad" behavior) Mobile games getting more and more P2W and have a half-life of ~1 year? Yeah, count me out. Especially with that example I know a lot more people that said "fuck that" and won't touch mobile games with a ten foot pole anymore.
And honestly it will be the same with Reddit. It's not like it's essential. I'll be good without it and I would guess many more people too. The two examples I gave made my life better (less screen time) and the Reddit move will do the same.
As for how it'll play out for the majority of people: I guess we'll see. But looking at Reddits latest track record of bad decisions I would argue it won't be the last one and there is a lot of potential to create a new Digg moment.
I don't have a real name on Facebook not have any of my friends. There are also a lot of fake/troll accounts on Facebook. I don't think they ever enforced that policy.
https://old.reddit.com/r/ModCoord/comments/143rk5p/reddit_he...
> Apollo threatened us, said they’ll “make it easy” if Reddit gave them $10 million.
Not sure how people are misunderstanding him, he literally said he was joking… He knows it’s not a great deal for Reddit. His whole point is that the app isn’t actually worth $20 million a year, which is what they want him to pay. It’s not even worth $10 million. Not to him or Reddit or anyone else.
Right now there seems to be two options on the table.
1. The Apollo dev pays $20 million per year for API access.
2. Apollo shuts down and the users return to the official Reddit website/app for advertising.
If Reddit is refusing to lower their API pricing, doesn't this mean the users are worth $20 million? If the users were worth $1 million, then why wouldn't Reddit charge $2 million for the API and double their income on those users?
That being said, something else must be at play here. The users are not worth $20 million and Reddit refuses to take anything less than $20 million. If I had to guess, they want to boost metrics before going public and are willing to take a hit to their reputation to do so.
It’s the same reason I don’t use instagram—seeing an ad every two images bugs the crap out of me. The difference with Reddit is there was a nice third party option.
Him not rabble rousing their user base against them would have been the benefit.
If he's leaving all that on the table out of spite, well thats his money to lose. But he shouldn't call the world unfair
Reddit's actions here make it pretty clear that they just want the app (all third-party apps) to shut down — if they actually wanted a solution they could easily lower the pricing to something more realistic and/or give a slightly longer transition period.
Let that be the lesson: don't sink your time (and money) into building OSS (or a business) on top of a platform. It's like building on sand.
The business plan and your personal savings should reflect that it can (and will) disappear in an instant.
Don’t be afraid to bring people in when something is outside your area of expertise.
He probably could have walked away will at least a few million vs shutting it down if there was a small level of negotiation that took place here. I'm not sure who was on the other end of the call but strategic accounts normally get pretty seasoned sales folks assigned to them. They are used to having hard conversations around pricing and pissed off customers. That's all part of negotiation.
That call was brutal to listen too.
Or, is saying you're shutting down part of negotiation too? This likely took it too far if it was, in that you're making reddit looks like the bad guy very publicly now. So, it's probably worth it for reddit to cut ties and force people into the reddit app.
No winners here:
This is a case study in bad negotiation tactics on both sides. Reddit tried to squeeze them pretty hard right off the bat. Should have tried a 3 year contract or something with heavy discounts. This is wild.[1] http://christianselig.com/apollo-end/reddit-third-call-may-3...