Nothing concerns an avid gamer more than disruption in their communication with other players within the game. Several different platforms have been effective at establishing communication bridges between playmates. However, there have been downsides to these platforms that made these solutions short-lived. It was either due to poor quality of calls, security concerns, and limited functionalities resulting in extensive restrictions for the gamers. When Jadon Citron noticed these issues being faced by the gaming community. He stepped forward to create a platform called Discord. 

The platform was created to assist gamers. Giving the Application all the required features, a gamer would seek assistance with. It was then integrated with high-end voice calling and texting systems that have been far better than what most platforms belonging to the similar niche have to offer. Not only is Discord free, but it is one of the high-level communicative gaming apps.

The application has been providing free of cost services to its users, that too, without any advertisements. Which often gets us to the question of, how does Discord make money?

For that reason, let’s understand the application and its features that support Discords’ revenue model.

Discord Features and It’s Business Model

There are a total of 14 million players that appear on Discord. That makes it around 315 million messages in a single day and over 250 million users that actively use the platform. This is substantial enough to understand how massive and successful the platform has been for gamers. Not only is it popular, but it has managed to maintain a thorough service.

Discord makes use of the freemium business model, which allows the establishment to deliver basic services for free to the users. However, there are premium features that can only be achieved through payments.

These are the free features that are provided by the application:

1. Users can connect with their peers through free audio chat services.
2. There is an option to add as many people on the friend’s list as the player wants.
3. The versatile application runs on several different devices and operating systems. Whether it’s a desktop or a smartphone. This also allows the users to customize notification and certain systems according to their uses.
4. Discord only requires confined CPU usage, which is highly minimal whilst also requiring low latency. Which allows it to run smoothly on most gadgets and internet connections.
5. Creating an account on Discord is easy, everyone has the option to opt for it. The platform does not ask for personal details, especially if the user chooses to stay anonymous.
6. There is an option within the platform to add bots to private servers, that have been created to enable likeminded users to connect with one another. Bots offer an enhanced user experience as they simplify the functions of the server. 
7. With the help of client-server communication encryption, the platform ensures to make connections secure. Not only does it focus on adding protection to handle DDoS attacks, but it focuses on keeping IP addresses safe.
8. Additional features of Discord include in-game overlays, hotkeys that can be customized, text-based chat that has been designed to match modern requirements, push notifications, hundreds of channels and servers, and private messaging.

 Along with these 8 basic features, two new features were added to the application recently.

• Discord Stream Kit: A new page was released under the site known as Discord Stream Kit that was focused on providing facilities to streamers on the site. The function has been ridden with features and tools that have been integrated to support live streams. Which is very much similar to what you would experience with YouTube, Twitch, and Twinge.
• Discord Rich Presence: Discord Rich Presence was launched to make integration of games easier for Discord users. With this given feature, players and users of the platform find it much easier to share their screens with their peers along with sharing games. This allows them to send party invites to their peers, enabling them to play games in groups. In addition to that, launching games in a party or simply spectating games has become much easier with this feature.

How Does Discord Make Money?

This is where we stumble upon this question of “How Does Discord Make Money?”. And to answer that we discovered the monetization strategies that have been allowing them to generate enough amounts of revenue even though their platform is free. It is safe to assume that their revenue model is still in progress and will continue to grow in the coming years

Discord aims to sustain itself without utilizing advertisements. According to the company, the selling of users data only hinders their bond. But rather intends to influence users towards participating in purchases within the application. According to Discord, advertisements can be intrusive, and selling user data only breaches the bond and relationship they have with their users. Therefore, confine themselves to revenue-generating strategies that solely depend on earning money from their services and facilities.

The platform has been transforming itself to deliver refined functions and features to users who incline towards purchases from within the platform. Which helps us understand as to how does Discord make money?

1.    Within Game Subscriptions – Discord Nitro

Discord Nitro offers a paid subscription that ranges from a month to a year-long membership, based on the user’s requirements.  It is a voluntary program that focuses on influencing to take part in purchases. Users who subscribe have access to different games, additional features, and benefits that can only be cherished by them.

Users get the option to choose their discord tags, they can modify their profiles with GIFs and avatars as their display pictures. It does not end there; they also gain a special badge that is visible for Nitro subscribers only. The best part about it is that screen sharing resolution is enhanced, making it easier to share screens at a higher form. Last but not least, users have the option to share their files at a much larger quantity with Nitro.

2.    Distribution Fees in Game Store

Discord has launched its own game store that provides a platform for developers to showcase and sell their games. Not only does that assist the developers in selling their games but Discord receives only 10% of the amount whilst 90% of it goes to the developers. And this helps the application operate their services at a much larger scale. Basically, no one loses anything along the way, only gains more through one another assistance.

3.    Discord Merchandise for Users

Discord has its own merchandise store that offers a variety of products that can be bought by users. The wide array of products includes T-shirts, caps, socks, mugs, hoodies, and much more. And this is one of the methods through which the platform generates revenue.

However, it’s important to consider the marketing and promotional efforts the application makes to influence users at contributing to the platform. And that is what has been inspiring users to purchase merchandise and different items.

4.    Discord Cosmetics

Discord has not restricted itself to a specific product only. The company aims to deliver as much as possible under one roof. Their list of cosmetic items includes sound packs, customized emojis, skins, and sticker packs. These offer an enhanced experience to users. And make their interaction with the application a little lighter and more entertaining.

5.    Funding and Investments

Discord focuses on receiving funds and investments as a part of their revenue generation model.  This enables the company to experience international growth, showcasing the platform across the globe whilst evolving its services adeptly. Discord raised around $280 million through their active services and influence on the gaming community. And its value has only been increasing over time.

6.    Gambridge

Gamebridge is a system that assists developers with coding and reducing their burdens whilst catering to the platform. There are several different benefits to the system. Especially on how it matches players into different voice channels without requiring the user to take part in the process. But instead, proactively carries out the function on its own.

The purpose of Gambridge is to build stronger communities by delivering perks such as audio distribution, enhanced user experiences, easier video sharing, GIFs, and screenshots along with many other benefits.

Wrapping it up on “How Does Discord Make Money?”

Discord has been contributing to the success and transformation of the gaming world. The platform has been a bridge between games and game lovers, assisting through friendlier chat programs that are like no other. Which often arises the question of, how does Discord make money? Now that you have understood their business model, it is going to be much easier for you to understand Discord’s unique dynamics.

The competition has been quite tough in the market. Making it harder for companies to stand out. However, Discord has been taking the lead through their exceptional services. Even then, the company strives towards delivering services for free. Allowing users to utilize audio chat and messaging facilities without having to make purchases. It is for sure that the platform is going to seek new methods to generate revenues in the future. And they are going to focus on benefitting users and the growth of the platform, rather than to simply generate revenue.

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