October 31, 2014
Redditmade, unveiled Wednesday, helps users raise money to create and sell customized products. The crowdfunding service gives users 30 days after creating an item to raise the money and send the product out. Reddit will then take a cut of the campaign for platform costs. While Redditmade is similar to Kickstarter, it focuses on physical goods rather than ideas. It then encourages users to donate revenue from successful campaigns to charities and causes. Reddit also plans to give a percentage to charity.
“While users who create successful Redditmade campaigns can keep any money they have raised for themselves, Reddit also encourages users to donate the funds raised to charities, causes or individuals that the users find most important,” reports The New York Times.
In the past, subcommunities on Reddit have focused on coordinating action across the Internet.
“That idea taps directly into one of Reddit’s greatest capabilities: funneling its traffic firehose of close to 170 million regular users to accomplish specific goals,” reports NYT.
The site’s other sources of revenue include Reddit Gifts, a small e-commerce site, and Reddit Gold, the site’s extra-cost service that offers perks to users. However, its largest source of revenue is advertising.