Discord has become one of the most popular online communication platforms, especially among gamers. With over 140 million monthly active users as of 2021, Discord provides free voice, video, and text chat in servers for various gaming and non-gaming communities. But operating such a large platform comes at a cost – servers, bandwidth, development, etc. So how does Discord, which provides its core services for free, actually make money?
In this article, we’ll take a look at Discord’s business model and the main ways the company monetizes its large user base, including its Nitro subscription service, games store, and partnerships. While offering a free service, Discord has managed to build a sustainable business that has allowed the platform to scale rapidly while staying true to its core value proposition.
What is Discord?
Discord is a free communication app that allows users to interact in real time through text, voice, and video. Available on mobile and PC, it is similar to chat apps like Skype and TeamSpeak but is specifically geared towards video game players. Discord provides gamers with ways to find each other, coordinate play, and talk while playing. With hundreds of millions of users, Discord combines internet-calling features like Skype with discussion boards like Reddit.
Originally launched in 2015 as a communication platform for gamers, Discord has become one of the most popular ways for people to connect online. It facilitates communication between gamers during and outside of gameplay. With robust tools for community-building and real-time interaction, Discord has evolved into a versatile platform for a diverse range of communities beyond gaming.
How Does Discord Work
Discord operates through servers, which are communities centered around specific topics and interests. Users can join existing public Discord servers or create their own private servers. Within each server, users can communicate via text chats, voice channels, and video calls. Discord’s functionality is powered by its robust permissions system, which allows server admins to designate moderators and control users’ access to channels and features.
Users can also form groups within servers for more private conversations. Discord facilitates communication through its mobile and desktop apps, with features like direct messaging, notifications, and embedded media enhancing the user experience. Robust community-building tools like custom emojis and profiles enable users to engage deeply with each other based on shared passions and interests.
How Does Discord Make Money
Here’s a more detailed breakdown of how Discord makes money:
Subscription Fees
Discord offers premium subscription tiers such as Nitro Basic and Nitro Classic that provide users with access to exclusive features, emojis, stickers, expanded file uploads, custom tags, animated avatars, and other perks. These monthly subscription fees incentivize users to upgrade from the free tier and contribute significantly to Discord’s overall revenue. The premium offerings enhance the user experience and foster greater engagement and loyalty.
Game Sales
Discord allows game developers to sell their games directly through Discord servers, with Discord taking a 10% commission on all sales. This gives developers access to Discord’s large engaged user base of gamers and provides Discord with revenue from facilitating digital game sales and promotions. It creates a win-win relationship where developers can tap into Discord’s audience and Discord benefits from more activity on its servers.
Server Boosting
Discord users can pay monthly fees to boost their servers, which upgrades server capacity, audio quality, emojis, stickers, and other benefits. Server boosting subscriptions provide revenue for Discord while giving users enhanced functionality. It also helps create more vibrant, high-quality communities on the platform.
Revenue Sharing
Discord has a revenue sharing program that allows content creators to monetize their content and earn a percentage of the revenue generated from their servers and contributions. This incentivizes creators to provide engaging content and deepens their involvement in the Discord ecosystem. The program boosts the platform’s value for all users.
What Is Discord Used For?
Here are some of the main uses of Discord:
- Gaming: Discord is hugely popular among gamers as a way to communicate and coordinate during online gameplay. Gamers can join Discord servers for specific games to find teammates, chat while playing, and get advice from more experienced players.
- Communities: Discord servers provide a place for all kinds of communities to gather around shared interests like art, music, sports, content creation, and more. People use Discord to socialize, collaborate, and share resources related to their hobbies.
- Friends/Family: Many friend groups and families use Discord servers to stay connected through chat, voice, and video. It provides a central place for them to interact casually or coordinate meetups.
- Education: Some classes and study groups use Discord to discuss coursework and help each other with assignments. The voice channels make it easy to get real-time help or collaborate on projects.
- Business: Businesses are increasingly using Discord internally for communication and teamwork. It offers more features than traditional chat apps like Slack. External communities can also be built on Discord for customer engagement.
- Events: Event organizers use Discord to coordinate attendees, make announcements, and allow people to connect around conventions, conferences, or performances.
- Direct Messaging: Discord provides robust direct messaging capabilities to have private conversations between two or more people.
Summary
Discord has proven that it is possible to build a profitable business while keeping the core product free and user-focused. By cultivating an engaged community centered around shared passions, Discord developed innovative monetization strategies like premium subscriptions, revenue sharing, and in-app transactions. While continuously improving the user experience, Discord has struck a balance between generating revenue and maintaining the qualities that make it so appealing to users.
With new features like video streaming and Stage Channels for events, Discord is positioned for continued growth while remaining dedicated to its mission of enabling meaningful human connections through communication. As long as Discord keeps this balance, its future looks bright.
Neil Duncan, a professional in business innovation and management, has a deep interest in writing and sharing his voice by publishing articles on different b2b and b2c websites/blogs like this. He currently serves as the Vice President in AZ.
Leave a Reply