What is Discord?

Discord is a free voice, video, and text communication service that was created by Jason Citron and Stan Vishnevskiy, who initially intended to use it to talk while playing games. It can be accessed through gaming systems such as Xbox, PlayStation, Android, iPhone, Mac, and PC. 

Discord has retained the gaming aspect and now has channels focused on music, hiking, and trading cryptocurrencies.

After downloading and registering within the app, users can join up to 100 Discord public or personal communities.

The app is very similar to Slack, where every server can have multiple individual channels for organizing topics for discussion. There is a limit for the number of channels set to 500 for each server.

Users can also send direct messages to one another in addition to the group servers and link third-party accounts—including YouTube, Spotify, and GIPHY—to the server, where they can share content from those accounts with the other members of the server.

How does Discord Work?

Discord is a social networking service designed for communities to communicate through voice and text channels, private chats, video conferences, etc. The best thing with these systems is that you can use them on Android, iPhone, and even computers. They also perform on famous game platforms such as Xbox and PlayStation. Discord is a group, and in that group, there is a channel that is a kind of special room where people can discuss certain issues.

For example, a group dedicated to discussing digital money might have specific channels for discussing various popular crypto projects such as Bitcoin, Ethereum, or Solana. There also might be an option for active members to discuss the latest trends in digital money and blockchain technology. In other words, the core elements of an average Discord server can be described in terms of channels.

How Does Discord Make Money (Is it a Profitable Business Model)?

So, how does Discord make money? Discord earns its revenue through the sale of premium subscriptions, commission from game sales, and server boosting.

Discord has been using the freemium model as its primary growth strategy. This means that the core platform of the intended P2P marketplace is free to use.

However, power users can buy useful add-ons that improve their experience.

Using a freemium business model, Discord grows much faster as it can attract more users to its platform.

Thus, the owners of some groups have created communities filled with commerce and services. Companies like Adidas are now using Discord to interact with customers as well.

As with many other free-to-paid models, the most important thing is to allow the user to experience the product’s functionality and develop usage patterns with the free version.

It is easy for users to get hooked and improve their usage by paying for those features.

Moreover, the more numerous those groups are, the greater the creators’ motivation to ensure everyone wants to be in said community (and, therefore, subscribe).

Well then, let me proceed to discuss all possible revenue models that Discord uses (currently).

1. Nitro Subscriptions

Nitro subscriptions are one major answer to the question how does Discord make money as the company continues to grow. Nitro has some advanced features and benefits for users compared to similar applications.

2. Discord Shop

A Discord shop was introduced in November 2023 to enable users to buy avatar decorations and display effects on their profiles. These items, such as limited editions produced in a particular season, can be kept permanently. Nitro subscribers get to enjoy special member prices, and they also get to purchase products that are only available in selected themes. The Discord Shop is a source of income for the company and allows users to have unique avatars.

3. Game Sales & Membership Fees

Discord, the communication app gamers use, entered the gaming services market by launching its game store in 2018, targeting Steam. The game store enabled Nitro subscribers to obtain discored games like Dead Cells or Into The Breach.

It never got off the ground and was discontinued barely a year after its inception. Perhaps recognizing this, Discord was able to rapidly transition into a new model where it aligns with game developers who sell games solely through their Discord servers.

First, developers must verify their servers. Subsequently, Discord will share information about the game and the server on its platform to provide developers with the necessary exposure.

Discord earns money when a game is sold on the servers it hosts. It also controls sales by taking 10 percent of the sale price. For instance, if a game costs $14.99, Discord will take a $14.9 cut from the sale.

Likewise, Discord has also introduced a Patreon-esque feature through which those who own the groups can ask their members to pay to get into the server.

Group creators can set the charges for the subscribers ranging from $2.99 to $99.99 per month. However, the rest goes to Discord, as the platform they use to earn the fees retains 90 percent of the amount.

The product is still evolving, having been developed and released in December 2021. For instance, in the past few months, Discord introduced its analytics dashboard and custom server emojis.

4. Server Boosts

Server Boosts are another way on how does Discord make money. They enable users to earn additional bonuses and perks for their favorite servers. For instance, by buying “boosts,” users can enhance a particular server’s functionality and performance in three stages.

Each level depends on a specific number of boosts, providing more subtle features like increased upload limits, better audio quality, and more emoji slots. A server boost costs $4. 99 per month. From the above details, it is clear that Nitro subscribers will get a 30% discount when they choose to scale up their servers.

Level 1 is unlocked when two users subscribe to the service by paying a subscription fee. The subscription fee for Level 2 is 15, while Level 3’s is 30.

It also serves as a means for direct monetization for Discord and cultivates people’s engagement and interest in the platform. As highlighted in the table above, the following are some of the perks and requirements attached to every Server Boost level. Discord has developed an effective monetization strategy that allows users to directly contribute to enhancing their favorite servers, thus being consistent with the platform’s principle of being a home for diverse communities.

5. Additional Revenue Streams

Discord has multiple communities and events that keep users engaged, making it easy for the company to generate revenue through advertisements, collaborations, and merchandise.

Discord’s other revenue source is the sale of branded merchandise such as hats, hoodies, sweatshirts, and T-shirts to users, again boosting the company’s brand recognition.

The company frequently restocks its stock with new limited-edition products and collaborations to make customers feel special and encourage consumption.

Interacting with users on design ideas guarantees that merchandise is popular among users, thus boosting its sales and users’ loyalty to the brand.

Discord has not interrupted its users by running ads that interfere with the experience, but it has offered brands limited ways to advertise to its users. This specific strategy aims to improve the usability and popularity of the products and services presented, as they will be targeted based on the user’s preferences.

This should raise the platform’s appeal and generate more revenue streams from brands and creators.

Conclusion

Discord has proven that it has a strong and efficient business model that will help it make money and grow. We have the blog answers how does Discord make money? In this way, Discord has created a diversified and lucrative system of services, including subscription services, games, boosters, and cooperation. The freemium model allows the company to gain a significant number of users, and the paid functions and opportunities to monetize multiple times help increase the company’s revenues.

Discord has become a valuable asset and a source of comfort to the gaming fraternity. It also offers gamers the opportunity to communicate and coordinate efficiently. In addition, the company provides many other services and specific software. Gamers engage with the Discord application actively, which results in positive outcomes.

Source: https://www.agicent.com/blog/how-does-discord-make-money/