CEO Of Reddit Steve Huffman About Their Strategy To Make Money

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CEO Of Reddit Steve Huffman About Their Strategy To Make Money

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[CEO Of Reddit Steve Huffman About Their Strategy To Make Money]

[Interviewer:] Source: LYBIO.net
How do you make money and how much do you make money like personally – no, with the site – no and person as well as everything.

[[Steve Huffman:] ]
We make money through ads. It’s not rocket science. I think a lot of people have blazed that trail in front of us in the Internet – on the Internet and it’s working out just fine for us our ad products are getting better and better because we have – we have the best users on the Internet. So when an advertiser makes a connection on Reddit. It’s a really incredible thing. Coke did an ad…

[Interviewer:]
What is your pitch to an advertiser because I would say if I would be an advertiser, you would say I have the perfect audience I’m like – what? No, it’s just like 12 to 16 year old angry young boys, right?

[Steve Huffman:]
No, it’s – we are so much more than that.

[Interviewer:]
What so much more, really?

[Steve Huffman:]
We have 12 to 16 year old angry young boys, yes.

[Interviewer:]
Yeah, and 44 year old.

[Steve Huffman:] But we actually – our demographics it’s we actually 40% women, we span pretty much the entire spectrum on ages because we have a community for everybody. So what we tell advertisers is; if you can find your audience on Reddit, you can build a real connection. What else I wanted to say before is Coke did an ad over the Super Bowl asking users to decide which two superhero should fight in their next commercial. The average time of that ad was 13 minutes. It’s like that’s sort of things unheard of online.

[Interviewer:]
Yeah.

[Steve Huffman:] So those sorts of things when you get a real connection between the brand and the community, it can be really powerful and a lot of fun. So that’s what we are pitching.

[Interviewer:]
Which is interesting because you would think your audience even though you say it’s very broad is also a very critical audience and most critical audiences right now hate ads and everything that’s do it in.

[Steve Huffman:]
Well, it’s true but I wouldn’t say our audience is critical, audience is really it’s a reflection of everybody so to the extent – if we all hate ads. We hate ads but we know that ads provide money to companies that we would like to exist. So the argument I make to the community is we are a business. We have to make money and money is freedom. So if you want Reddit to stay Reddit, if you want Reddit to not be beholden to investors…

[Interviewer:] Source: LYBIO.net
If you want the next web to stay the next web, you got a yeah… – I gotta steal that.

[Steve Huffman:]
So we need to make money. So we can continue providing the service we provide because it really provides information that you can’t find anywhere else online, human connection you can’t find anywhere else online I think that’s really important. And as long as we’re spending investors’ money, I think it’s difficult to know that we will be able to provide that forever.

[Interviewer:]
Right, right. So what kind of CEO are you and what kind of CEO was Alexis and what’s the difference between you two?

[Steve Huffman:]
Well, Alexis used to describe it as you know he’s the peanut butter on the jelly or maybe it’s the other way around, I don’t know, we are opposites but we fit well together. We’ve had a long friendship, we met first day of college lived together for eight years. Alexis is – he’s the most charismatic guy on the planet that is a superhero strength, where I am the brains of the operation.

[Interviewer:]
[Laughs] All right, well, you’re not doing bad yourself. So… back to the question how much money is Reddit making can you say that?

[Steve Huffman:]
We don’t share that however.

[Interviewer:]
How much money are you making then?

[Steve Huffman:]
Plenty.

[Interviewer:]
Plenty? Great, are you rich?

[Steve Huffman:]
Well, we sold it, it depends on what scale we sold Reddit when I was 22. So I’ve had the luxury of not really having to think about money in most of my life.

[Interviewer:]
That’s also that sounds like you’re rich. Yeah…

[Steve Huffman:]
Yeah, it’s given me this kind of a weird crisis because I haven’t had to think about that. And so I think there’s always a little bit of guilt that comes along with that as well. But we were uh…

[Interviewer:]
But with survivors skills but with money, I have that too.

[Steve Huffman:] Source: LYBIO.net
Right place right time, played the cards we were dealt we’ve been very fortunate, yeah.

[Interviewer:]
So the moment you sold it to Conde Nast, did you walk out and go like oh my god. These guys have no idea what they’ve bought because they have no idea what they bought right?

[Steve Huffman:]
I don’t think we knew what they bought when we sold to Conde Nast we were so dysfunctional internally that we thought we were getting away with something.

[Interviewer:]
Ah….

[Steve Huffman:]
We thought we were swindling them. And now when I think about how much they pay for Reddit it’s the deal of the century.

[Interviewer:]
You’ve got to back for free basically.

[Steve Huffman:] So Reddit spun out in 2012.

[Interviewer:]
What’s that mean?

[Steve Huffman:]
Basically they became so Conde wisely realize that Reddit was languishing inside, underneath Conde and so they spun it out as an independent company with Conde and basically making the first investment. So Reddit is now independent again, we have our own board we have our own money, we can do. You know —

[Interviewer:]
And they’re still a shareholder.

[Steve Huffman:]
They are shareholder, yes.

[Interviewer:] Source: LYBIO.net
Ah… so you can’t talk shit about them.

[Steve Huffman:]
You know. I’ve known them my entire professional career so I actually like them.

[Interviewer:]
Oh, you like them,

[Steve Huffman:]
Yeah.

[Interviewer:]
That’s hilarious.

[Steve Huffman:]
[Laughs]

[Interviewer:]
So at one point you were growing but you were also like the weird cousin of Digg like the pimply, ugly, duckling like on the inside where everybody was using Digg and then the weirdest thing happens can you – from your perspective. Tell that story.

[Steve Huffman:]
So Digg was the darling of Silicon Valley for a while, for a couple of years. They were like the hottest start-up and we were always second fiddle about five to seven times smaller for years and years and years. And but this always offended me deeply I felt like Digg was a company that had no soul, their products sucked. Ours is ugly but it works very well I just it – it frustrated me to no end, to be the second fiddle.

And then this moment where Digg they did this very, very foolish redesign they basically sold their users out, made all of their content sponsored. And it was just the gift that they gave us. You know -You don’t expect those things. I remember waking up that morning and somebody told me this and I was just like they did what?

For us. It’s what it felt like and that was the only day Reddit has had you know ten years of steady growth which is great which is why we’re so big now but we never had that kind of hockey stick moment. Except that one day when Digg committed suicide. And our traffic doubled it’s very, very nice the beautiful graph and that was actually that that was in my head last summer when I returned is this is how fast things can die on the Internet especially when you’re a social site when you’re beholden to users like they can actually leave. And so that was the memory that was going through my head was I don’t want to see what happened to Digg happen to Reddit.

[Interviewer:]
Right, but is that also holding you back because I remember Kevin Rose was defending the change at the time, where you said no you’ve got to evolve, we can’t stick with the same thing, you got to innovate, sometimes you make a mistake give us a few months where everybody was just like – no, revert you know what you call it uncommit the changes whatever… go back to the old…

[Steve Huffman:]
Revert.

[Interviewer:]
Revert the changes, yeah, anyway but they didn’t and it was just…

[Steve Huffman:]
Well you know…

[Interviewer:]
I forgot it.

[Steve Huffman:]
One of the things I preach at Reddit a lot is confidence over caution. It means; like we need to do what’s right for our business. and if we explain that to the users they will understand you know if we have a reason for what we’re doing and we articulate it. They will understand even if they don’t like it.

[Interviewer:]
Oh, yeah but that’s what Kevin Rose said in the morning, no.

[Steve Huffman:]
Well, no, see they didn’t have – well their reason was bad, they did it with no finesse and fundamentally it was user hostile. We very much love our users, I am a Redditor, right – and I want Reddit to be the best it can be. So we do the things we need to do with confidence. Instead of being afraid of what the users are going to think but ultimately most of the things we are doing are in service of the user. So it’s not too – hard to connect the dots there.

[Interviewer:]
Yeah, and is there are different monetization strategy or let me rephrase that how are you going to make money with the ad?

[Steve Huffman:]
It’s actually it is still the ads but ads fit – Facebook has done us a huge favor in making people except in line native ads like that ad format is so very good. And it’s actually not even bad for the user I’ve bought many things from Facebook ads. So we’ll probably do more or less the exact same thing except our targeting will be different because we know – we know all of your interests not just your the interest you’re willing to declare publicly on Facebook but we know your dark secrets, we know everything.

[Interviewer:] Source: LYBIO.net
Oh, my god. Delete my account. Yeah, yeah.

[Steve Huffman:]
Try it. You will be back.

[Interviewer:]
Yeah, girls gone wild.

[Steve Huffman:] Source: LYBIO.net
Yeah.

CEO Of Reddit Steve Huffman About Their Strategy To Make Money

CEO Of Reddit Steve Huffman About Their Strategy To Make Money

CEO Of Reddit Steve Huffman About Their Strategy To Make Money. Delete my account. Try it. You will be back. Complete Full Transcript, Dialogue, Remarks, Saying, Quotes, Words And Text.

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