how does discord make money

How Does Discord Make Money

Since the app has been launched, Discord has proved to be the toughest competitor of Skype and TeamSpeak in the market. Because the app is focused on gamers, it is leading the market. Currently, more than 87 million users are making the most of this app. The app is free to use and has no plans of charging for its core features. Discord is more focused on the provision of a trouble-free communication platform for users.

Provision of services for free triggers a question that how does Discord make money? And the same had become a point of discussion on the internet, but before we look into this let’s have a discussion on what Discord is. 

Discord is not just a chat app for users alike Skype or TeamSpeak, but also offers a lot more than that. It generally focuses on the video game community, enabling them ways to find each other, communicate, and play together.

Through its prominent features the app is gaining popularity among users which is evident from the fact that currently, it has over 200 million active users.

Along with the gaming servers, other public Discord servers are also available that covers a variety of niches like cryptocurrency, self-improvement, and anime. So, if you want to discuss a topic on Discord you can create a server for that.    

Integrated with advanced audio-video calling and messaging facility, the application is commonly used for hang-out and chatting purposes which is far better than its competitors. Features that resulted in such operational excellence are covered below.

  • Voice chats can be used for free along with gaming microphones.
  • Discord also allows you to connect other social media accounts to the app including Twitter, Steam, and other related apps.  
  • Gamers can add as many people in the friend’s list as they want for making direct contact with them.
  • Sometimes a question arises how much data does Discord use? Discord is light on the system, its flexibility and less data consumption make it easily accessible either through desktop or smartphone, thus extending the social capabilities of the app.
  • The account opening procedure is quite easy without requiring any personal details, allowing users to remain unidentified.
  • Bots can be added on Discord for simplifying functions and enhancing user experience because as the server grows it becomes more difficult to keep an eye on things. Several server bots are available including moderation bots, image bots, translation bots, game bots, music bots, and other official server supported bots.
  • Discord maintains confidentiality using client-server communication encryption and keeps the IP addresses confidential.

It’s an ad-free platform as the company is against the advertisement and common practice of selling user data. Developers believe that advertisements are not welcomed much by the users and selling of user data acts as a barrier in the relationship between both the parties, as a result, you won’t see any ad popping on the screen. Allowing basic services for free without any ads, a question arises in mind that how Discord is making money? Let’s have a look into this.

1. Discord Nitro

how does discord make money

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Discord is free to use, and it cost nothing to start a server. In case you are loving the experience, you can opt for Discord Nitro. It’s a paid subscription, offering additional benefits coupled with those provided in the free version, ranging from a month to a year costing $9.99 per month or $99.99 per year. However, the subscription is non-mandatory and your access will not be retarded in case you didn’t subscribe.

For those who subscribe to Discord Nitro some additional features, different games and few more perks are there for them on the platform.   

  • Users can set their profile on their own and can get their customized discord tag.
  • GIFs and profile avatars can be used as display pictures for customizing one’s profile and can be a point of attraction for visitors.
  • The enhanced screen sharing feature has added to its popularity. Screen share in either 720p at 60fps or 1080p at 30fps. By sharing the screen with others, it allows them to see what’s live on your screen. Real-time screen sharing had escalated the interest of users by sharing high-quality interesting games live on their screens with others and thus results in bridging the gap between gamers and game lovers.
  • If you are attracted by an emoji on any server which can’t be exported from there, you don’t need to worry because Discord nitro allows the use of custom emojis on any server which can’t be extracted from other servers.
  • Users can now share files in bulk. Files or images up to 100MB can be uploaded at a time using nitro without even compromising the speed limit.
  • For only nitro subscribers, a special profile badge is visible for them which indicates their association with the Discord and how long they have supported the app.

Among 200 million active users, subscriptions from an increasing percentage of users allow the entity to earn fairly enough.

2. Discord Game Store

how does discord make money

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Being a gaming app, a market has been established for developers and they have got a platform for displaying and selling their games online using the Discord game store. They are making the best use of Discord for business by sharing 10% of the revenue with it. A minimal percentage of profit-sharing with developers attracts others across the globe and this collaboration with the gaming industry supports the application to operate at a larger scale.

 On the other hand, the gaming industry is able to approach a broad number of customers without spending much on marketing and advertisement. Thus, a win-win situation is created for both, Discord and the gaming industry.

3. Discord Merchandise Store

how does discord make money

Source: medium.com

Discord’s merchandise store is another platform used by the app for revenue generation. To show your support and love for the app, you can try the latest collection by the app which includes t-shirts, caps, socks, and other related items designed by the dynamic team of creative designers and developers.

It’s difficult to estimate the actual earnings the company had made since the foundation of the merchandise store. However, there is a need for marketing and promotional campaigns to motivate the users to make purchases from the store and make earnings from it.

4. Discord Cosmetics

how does discord make money

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For the improved user experience and customer satisfaction, Discord is making use of cosmetic items comprising sticker packs, sound packs, customized emojis, and skins.

Stickers are in trend nowadays and are in frequent use on most of the popular social media apps like WhatsApp, Facebook Messenger, and Instagram.

Skins can be imagined as changing of background display designed to enhance the look of Discord.

Sound packs are the sound effects on Discord in the background.

Users making use of Discord for business can avail of this unique facility by spending just little and make their interaction with customers more entertaining and impactful.

5. Discord’s Funding  

how does discord make money

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As part of its business model Discord receives funds and invests them to generate more revenue. Huge funding by companies enables the app to seek international growth, displaying the platform across the world and adapt to the changing circumstances promptly keeping pace with the rapid advancement in technology.

Around $280 million were raised by the Discord from its services and its worth has been increasing with the passage of time.

6. Gamebridge

how does discord make money

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Gamebridge is another revenue-generating feature for Discord which is currently in the evaluation stage and might be released as a paid product in the near future.

Through game bridge, developers integrate the app in their game which assists them with coding and lessens their burden. The purpose behind game bridge is to build up a community by offering features such as integrated sharing of screenshots, GIFs and videos, audio distribution, enhanced user experiences, and other related benefits.

Also Read: Make Extra Money By These Legitimate Seven Ways

 7. Isn’t Just for Gamers

how does discord make money

Source: squerz.com

Along with providing a gaming platform, Discord is also gaining popularity for its non-gaming uses. The app promotes book clubs, dance classes, and digital conventions. The result of internal polls shows that Discord is used by teenagers from studying to watching Netflix together. Friends can see and listen to the music you are enjoying by connecting Spotify music streaming to your Discord account.

During the Covid-19 epidemic which had put the whole world under lockdown and had left us to interact virtually, users had found a number of more creative stuff on Discord.

Conclusion

Discord is leading the gaming world by contributing towards its success and transformation, bridging the gap between gamers and game lovers. Even the competition is tough in the market, making it difficult for companies to stand out, Discord is struggling with providing services for free, but it has no intension of forcing its users to pay for its core services. Instead, they are focusing more towards a semi-freemium business model where users who pay for the application will enjoy more and better features and the same is also evident from the above strategies discussed in detail. It is for sure that the company is focusing more on enhancing the platform for users and benefitting them while seeking new revenue-generating opportunities in the future.

For more finance-related concepts you can have a look at the FinanceShed, and stay tuned for more updates.