zlacker

>>robbie+(OP)
Their pricing is just absurd. Reddit's official app and webpage is garbage, and instead of working with amazing developers like Christian to add whatever functionality they need to increase their revenue, they're doubling down on bad decisions and alienating their users. Pure hubris... they've forgotten their own history and why the Digg exodus happened.

Seriously, _what_ are they gaining by eliminating access to third-party clients? If they want usage data, they already have all the API calls. If they want more ads, they can change the APIs to inject them.

>>Lx1oG-+v6
Facebook's average revenue per user (ARPU) is ~$10/quarter[0], and 6x that in the US. Which is honestly kind of stunning. Reddit is presumably much less than that, but they might be reasonably gunning for a number better than Pinterest, with an ARPU of ~$1.50[1].

To put the pricing post into the same context, we're talking $7.50 per Apollo user/quarter, which is closer to what Facebook makes per user than Pinterest.

That said, presumably 3rd party client users are especially active and would skew higher ARPU than the average Redditor, and it wouldn't surprise me if they were more likely to live in developed countries.

I dunno. I started running the numbers expecting to be outraged, but the cost doesn't seem crazy far from what Reddit could conceivably hope to earn off these users. I doubt Reddit is monetizing anywhere near that well right now, but if they're pricing the API in a forward-looking way, rather than planning to ratchet it up every quarter inline with monetization efforts, it could make sense.

0: https://www.statista.com/statistics/251328/facebooks-average...

1: https://www.statista.com/statistics/995251/pinterest-quarter...

>>yojo+aD
> Facebook's average revenue per user (ARPU) is ~$10/quarter[0], and 6x that in the US.

Can someone explain this to me? Why is it so high? Even if every single person on Facebook buys a product because of ads once per year, doesn't that mean companies are paying $240 to acquire a customer in the US? Is it worth that?

My first though was that maybe 1% of users buy something in a given year, but that's $24k to acquire a customer and is so far from reality that my perspective must be way off.

>>donmcr+JO
>> Facebook's average revenue per user (ARPU) is ~$10/quarter[0], and 6x that in the US.

> Can someone explain this to me? Why is it so high? Even if every single person on Facebook buys a product because of ads once per year, doesn't that mean companies are paying $240 to acquire a customer in the US? Is it worth that?

1. I wouldn't be surprised if lots of businesses lose money on their Facebook ads, but either don't realize it or Facebook has enough churn that it doesn't matter if the quit (e.g. a revolving door of unsophisticated local businesses spending money on Facebook because it's the biggest game in town).

2. A lot of advertising is broad "brand awareness," and I imagine it's actually very hard to determine if it's actually working in many cases.