Introduction
Discord was founded in 2015 as a communication platform designed specifically for gamers. Since then, it has expanded to include all types of online communities, from small friend groups to large communities centered around specific topics or interests. Discord’s popularity has grown rapidly, and as of 2021, it has over 140 million monthly active users.
As Discord has grown, so has the curiosity around how it generates revenue. Unlike some other social media platforms, Discord is not known for bombarding its users with ads. So, how does Discord make money? In short, through a variety of methods. Let’s take a closer look.
Advertising
One of the most common ways that online platforms make money is through advertising. Discord is no exception. While Discord may not have as many ads as other platforms like Facebook or Twitter, it does offer advertising options for businesses and organizations interested in reaching Discord’s user base.
Discord’s ad platform is called “Server Boosting.” This feature allows users to buy “boosts” for their servers, which in turn gives them perks like custom emoji slots, increased audio quality, and server banners. Discord then promotes servers with the most boosts through its homepage and server discovery feature, giving businesses and organizations a prime place to advertise to gamers and online communities.
While Discord doesn’t disclose its advertising revenue, it’s clear that there is a demand for advertising on the platform. According to Discord, over 15% of its servers have been boosted at least once.
Nitro Subscription
Another way that Discord generates revenue is through its Nitro subscription service. Nitro is a premium subscription that unlocks exclusive features for Discord users, such as higher-quality screen sharing, custom profile badges, animated emojis, and more. Nitro also gives users the ability to use custom emojis across different servers.
Nitro subscriptions are priced at $9.99 per month or $99.99 per year. While Nitro is not required to use Discord, it does provide a stable revenue stream for the company. Additionally, Nitro gives users a way to support the platform while also unlocking exclusive features.
Partnerships
Discord has partnerships with a variety of game developers, which is another way it generates revenue. These partnerships allow developers to create custom communities and integrations within Discord, making it easier for players to communicate, coordinate, and share content related to their favorite games.
For game developers, partnering with Discord provides an opportunity to tap into an audience of millions of gamers who are actively engaged in online communities. For Discord, partnering with game developers means access to exclusive community content, which can help attract more users to the platform.
One particularly successful example of a game launch through Discord is Among Us. The popular online multiplayer game initially struggled to gain traction when it was released in 2018. However, when Discord communities started playing and sharing the game, it quickly gained popularity. Eventually, the game was noticed by popular streamers, which caused a surge in downloads. Today, Among Us is one of the most popular games played on Discord, thanks in part to Discord’s partnership with the game’s developers.
Server Boosting
As mentioned earlier, server boosting is an advertising feature that allows users to promote their servers on Discord. However, server boosting also generates revenue for Discord in a more direct way. When a user buys a server boost, they are essentially purchasing a microtransaction, which benefits the platform financially. Additionally, the more users that boost a server, the more likely it is that other users will want to boost their own servers to keep up. This creates a cycle of boosting, which generates consistent revenue for Discord.
Besides generating revenue, server boosting can also lead to better features for server owners and users alike. For example, a server with more boosts may have access to better audio quality, while users may have access to custom emojis or a better discord experience worth staying for.
Merchandise Sales
Discord also sells a variety of merchandise, such as t-shirts, hoodies, stickers, and more. While merchandise sales alone may not generate significant revenue, they do provide an additional revenue stream for the company. Additionally, merchandise can help raise awareness of the platform and provide a way for users to show their support for Discord outside of the platform.
Some of the most popular Discord merchandise items include shirts and hoodies featuring Discord’s logo or its most popular custom emojis, such as the “PogChamp” and “FeelsBadMan” emojis.
Data Sales
One final way that Discord may generate revenue is through user data. As with most online platforms, Discord collects data on its users, such as their location, interests, and activity on the platform. While Discord doesn’t sell user data directly, it may provide data to third-party companies for a fee. These companies can use the data to target ads or create products and services that are more tailored to Discord’s user base.
It’s worth noting that Discord takes user privacy seriously and does not sell identifiable user information. Additionally, users can opt-out of sharing their data through Discord’s settings.
Conclusion
Discord uses a variety of methods to generate revenue, including server boosting, Nitro subscriptions, advertising, merchandise sales, and partnerships. While Discord may not be as ad-heavy as other social media platforms, it provides unique opportunities for businesses and organizations to reach a highly-engaged audience of gamers and online communities.
As Discord continues to grow, it’s likely that they will explore additional revenue streams and partnerships. However, as the platform has demonstrated, it’s essential to maintain a balance between generating revenue and providing value to its users. Discord’s revenue generation benefits the company, but it also provides opportunities for gamers and online communities to connect and share experiences like never before.
