Discord poster

How Does Discord Make Money?

Discord is a multi-platform text, voice, and video chat tool geared for gamers worldwide. This free application provides a hassle-free voice and text chat experience while playing games and community building outside of the game.

When you use Discord, you can join themed servers made by anyone signed into the application. Others with the invite or participation link can join the same servers. The server administrators can offer text and audio channels that members can utilize to discuss various topics. While Discord’s primary market is gamers, the network is also used by multiple other interest groups, including music, art, entrepreneurship, and spirituality.

Discord, founded in 2015 and located in San Francisco, has quickly grown to prominence as one of the world’s most popular chat applications. The corporation now serves more than 100 million active users across 6.7 million servers.

What Is the Purpose of Discord?

Discord enables users to create servers on which they can draw an audience for live streaming events. Essentially, the server serves as a community hub, showing content relevant to the server’s users. The server’s owner moderates the community as they see fit. The app has a chat feature that enables community members to communicate with one another during events.

How Does Discord Generate Revenue?

Discord generates revenue through the sale of Nitro subscription packages. Other revenue streams include server boosting and fees from games sold on its servers. The core software will remain free, with users paying exclusively for premium services.

Discord’s business strategy is still in development. The company is opposed to marketing and the sale of user data and has previously relied on funding money. They have no plans to charge consumers to continue using the application in the future. Rather than that, the company is transitioning to a semi-freemium business model in which it offers enhanced capabilities to those who pay for them. Additionally, Discord generates revenue through the sale of business merchandise.

Because the creators believe adverts are obtrusive and selling user data constitutes a breach of the two parties’ relationship, they have firmly prohibited themselves from employing any such revenue-generating technique. The primary product of Discord is completely free to use. This enables the company to sign up users rapidly.

As with any other business, it soon needed to develop a revenue model. Discord launched its Nitro bundle in 2017. Other sources of revenue came in the years that followed. However, not all of the company’s attempts have been successful. Two years after opening, the company closed its goods store, which sold Discord-branded clothes.

As entrepreneurs test multiple revenue methods, some succeed while others fail. For the time being, Discord derives revenue from these sources, which we’ll discuss below.

1. Subscriptions to Nitro:

Discord launched Nitro subscription tiers in 2017, becoming the company’s first income stream. The optional feature enables users to create a personalized profile complete with animated avatars and custom tags.

Nitro allows users to design their own emojis and upload files up to 100MB in size. Additionally, your Nitro subscription, which costs $9.99 per month or $99 per year, includes free live streaming, screen sharing, and high-resolution video.

Additionally, Discord offers a less expensive version of this plan called “Nitro Classic,” which costs $4.99 per month or $49.99 per year.

2. Distribution of Games:

Discord established an online video game distribution service in 2018 that is similar to Steam. The store has Discord-exclusive titles such as “Into the Breach” and “Dead Cells.” However, the model did not perform as expected. Discord shifted its focus to partnering with game developers who wish to sell their products solely on the Discord platform.

Discord earns a 10% fee on each game sold and uses the revenue to grow the number of its server communities. As previously said, Discord servers are communities, and the platform provides this service for free. However, those that make living streaming realize that they require more features from their Discord server.

3. Merchandise Store for Discord:

Discord’s own retail store sells a wide assortment of branded T-shirts, sweatshirts, caps, and socks. It earns a small profit from the sale of these things.

However, it’s worth noting that Discord earns most of its revenue through intelligent marketing and advertising efforts. It invites people to support the company’s growth by purchasing their stuff and cosmetics.

4. Investments and Funds:

Discord is backed by large companies in the form of finance and investments. Discord uses this to expand internationally and to improve the Discord platform. It has raised a total of $ 280 million in funding rounds and is now valued at an impressive $2.05 billion.

5. Server Boosts:

As a result, the company decided to expand its portfolio with the addition of server boosting. Essentially, server boosting is a paid service that enhances the efficiency and usefulness of the Discord Server. Users can upgrade their server to three tiers, each with its own set of benefits. A server boost costs $4.99 per month on Discord. Nitro subscribers receive a 30% discount on server boosts.

Users gain access to level 1 when they have two subscribers on their server. To advance to Level 2, users must purchase 15 boosts, and to go to Level 3; users must spend 30 boosts. Fortunately, any user on the Discord server can use the premium features, even if they are not paying for the service.