One of the things Spez is whining about is that they’re not profitable.
And honestly, I don't care about Reddit being profitable. I care about it being sustainable.
A VC-driven push for profitability doesn't mean breaking even. It means making a shit-ton of money, yielding a very large return on their very large investment. And they are perfectly willing to destroy an adequate business if that means they are getting a chance at something larger and much more profitable.
Without a lot of internal data, we'll never know the truth of it. But I suspect that there is a sustainable version of Reddit-the-company that would do everything Reddit-the-community needs without this sort of aggressive destruction of value in pursuit of high revenue numbers.
For nearly 20 years I helped run Bandwagon, a co-op of nerds who toward the end of the dot-com bubble needed a place to put their personal web projects. We clubbed together to rent a full colo rack and we each put our servers in.
There were many opportunities to try to turn this into a business. It might have been lucrative, might have been a failure. We kept it as a small co-op, and it was fine.
And right now I'm looking at starting something that I might eventually get a salary from, but if it has surplus revenues beyond that, I'd rather use it to improve the thing and its impact in the world.
I understand that a lot of people want a zillion dollars so they can live a life of luxury. To each their own, but I feel kinda bad for people who organize their lives around that. They rarely succeed, are usually quite unhappy, and frequently create a trail of pain and misery behind them.
As a small business owner myself, I can very much assure you that we're not thinking of that at all; we're thinking of ways to get back into the black!
Once we're in the black, we'll start thinking of ways to get an early retirement.
Congratulations Reddit! You pulled in users with no good way to cover the costs of those users.
He’s chasing new markets, not doubling down on current ones. to the detriment of everyone including his companies profitability.
