How In The World Does Discord Make Money

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Discord is a social network for gamers that have pledged to remain ad-free (unlike other social networks, which have historically relied on advertising for funding).

Its current business plan is centered on a monthly membership for extra features, a commission on games sold on its server by developers (10% commission), merchandising (temporarily suspended), and partnerships.

Discord is a communication software that allows gamers (and anybody else) to organize themselves into groups known as servers. Android, iPhone, Mac, Xbox, PlayStation, and PC devices are all supported by the platform.

Discord earns money via premium subscriptions, game sales, membership fees, and server boosting.

In this article, we’ll work you through all you need to know about the Discord social network for gamers. Continue reading for more details.

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History of Discord?

Jason Citron and Stan Vishevskiy launched the Discord project in 2011. Discord’s original name was Hammer & Chisel.

Following that, “Fates Forever,” a game created by Citron and Vishevskiy, included the Discord app’s distinct speech and text capabilities.

The game was a flop with the general public, but the in-game chat system was well-received by the gaming community. Over Teamspeak and Skype, the installed technology was chosen.

After several years, Hammer and Chisel abandoned game development to focus on Discord, which was introduced to the public in 2015.

It was recommended that “Discord Inc.” be adopted as the corporation’s new name.

What is Discord?

Discord is a chat tool designed primarily for video game players. It allows you to communicate via text, phone chat, and video calls.

The platform is available on a range of platforms, including Android, iPhone, Mac, Xbox, PlayStation, and PCs.

Discord allows its users to organize themselves into groups known as Discord Servers. Its functionality is comparable to that of Slack groups.

These servers are populated with several channels that are used to debate and collaborate on various issues.

A single user can connect up to 100 servers. Public ones may be viewed simply as a link. However, private ones require invitations and permission. Any given server can have a maximum of 500 channels.

If you’re weary of group conversations, Discord allows its members to talk directly with one another.

Furthermore, the app is connected with other sites like YouTube, Spotify, and GIPHY, allowing users to share third-party content on Discord.

However, Discord is not just for gamers. The software is used by communities ranging from book clubs to dance classes to debate any topic and schedule forthcoming activities.

Watch the Discord Movie Trailer starring Danni Devito and Awkwafina.

how does Discord make money

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How Discord Makes Money

Discord generates revenue through subscription fees, game sales on their Steam-like marketplace, and server boosting (which improves the performance of the Discord Server).

Nitro Subscription


Discord launched Nitro subscription packages in 2017, which served as the company’s first income stream.

The optional feature allows users to create a customized profile with animated avatars and personalized tags.

Nitro allows users to create their own emojis and upload files up to 100MB in size. With your Nitro membership for $9.99 per month or $99 per year, you also receive free live streaming, screen sharing, and high-resolution video.

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

Game Distribution

Discord established an online video game distribution business similar to Steam in 2018. The store sells Discord-only games such as “Into The Breach” and “Dead Cells.”

However, the model fell short of expectations. Discord shifted its focus to a new concept in which it collaborates with game creators that want to sell their products solely on the Discord platform.

Discord receives a 10% commission on every game sold and uses the proceeds to grow the number of its server communities.

As previously stated, Discord servers are communities, and they are a free service provided by the platform. Users who broadcast for a living, on the other hand, want additional functionality from their Discord server.

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Server Enhancement

As a result, the firm decided to add another premium service, server boosting, to its portfolio. Essentially, server boosting entails paying a fee to improve the performance and usefulness of the Discord Server.

Users may upgrade their server to three tiers, each with its own set of benefits. A server increase costs $4.99 per month on Discord. Nitro subscribers enjoy a 30% discount on server upgrades.

Users gain access to level 1 when they have two subscribers on the server. Users must purchase 15 boosts to advance to Level 2 and 30 boosts to go to Level 3.

Fortunately, the premium capabilities are available to all Discord users, even if they are not paying for them.

Future Growth Engine

In the next years, the firm plans to expand the Nitro Package with new services and features. Discord claims it will always provide free chat and messaging services, but it plans to increase its subscription offering.

GameBridge was developed with the hopes of increasing the company’s service offering and income model.

However, Discord pulled it just a few months after it launched. Nonetheless, it intends to bring GameBridge back with a better service.

We may anticipate Discord expanding its gaming arena and stores in the future as it attracts more developers and users with a new revenue-sharing model.

The business intends to reward game creators that introduce new games and players to the platform.

Competitors

Discord is gaining popularity among gaming and live-streaming communities. However, things evolve swiftly in technology, and trends might die at any time.

There are other firms that provide a service comparable to Discord. Some are superior, while others are not. However, gamers and live-streamers should think about backups for their businesses.

The following are some of the other firms that provide comparable services to Discord.

  • TeamSpeak is an online game communication system that uses VoIP.
  • Troop Messenger is a feature-rich instant chatting program.
  • Chanty is a tool for team cooperation.
  • HeySpace is a task management, chat, and scheduling application.
  • Slack is a chat service that links users through channels.
  • Mumble is an open-source audio chat tool for gamers.

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Discord Funding, Valuation & Revenue

According to Crunchbase, Discord has raised a total of $995.4 million in venture capital over 16 rounds.

Sony, Index Ventures, Greenoaks Capital, Dragoneer Investment Group, and many more are among the notable investors.

After collecting $500 million in Series H fundraising in September 2021, Discord is now valued at $14.7 billion.

The company does not officially reveal sales data, although it is estimated to generate roughly $130 million each year.

How Does Discord Make Money FAQs

Is It Safe to be on Discord?

Is Discord secure? It’s simple to use Discord safely with the correct privacy settings and monitoring.

However, there is always a danger when it comes to open chat sites and applications. Accepting friend requests and participating in private servers with individuals you already know is the safest method to use Discord.

Does Discord Cost Money to Join?

Discord is completely free to use, but if you want to get even more out of it, you can subscribe to Discord Nitro.

This premium subscription tier ($9.99 per month or $99.99 per year) includes extra upload size limitations, HD video for streaming and screen-sharing, animated avatars, and personalized emojis.

Can I Be Anonymous On Discord?

There is a significant degree of anonymity on Discord, and individuals may get into unwelcome contact. However, you may configure your privacy settings so that only confirmed friends can send you direct messages.

Conclusion

Discord has made a significant contribution to the game industry’s prosperity. It offers a nicer chat tool for gamers that no one else offers for organizing and chatting with other game lovers globally.

Without it, the passionate spirits of gamers would not have as much convenience, which is why Discord will continue to control the market for a long time.

However, it should continue to improve its features and security and offer some revenue-generating sources.

References

  • productmint.com – The Discord Business Model – How Does Discord Make Money?
  • finty.com – How does Discord make money?

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