Reddit launches crowdfunding platform called Redditmade
The thing that has always seemed to set Reddit apart from other communities on the Internet is loyalty. Reddit, in some ways, seems to have become a kind of haven for a lot of people seeking. It's not something that can be grown overnight; it takes years for something like that to foster.
The community that Reddit has built is special, and now it is going to either capitalize on it, or reward it, depending on which way you want to look at it.
The company, which has already said it wants to introduce its own virtual currency, has now revealed that it is also launching a new crowdfunding platform, called Redditmade, to go along with it, called Redditmade, it was announced on Wednesday.
The idea behind Redditmade is, according to Reddit, a way to bring its community even closer together, giving them a way to 'collaborate and support each other, and empower redditors to make a difference,' Reddit wrote in a blog post.
Specifically, it is aimed at helping moderators of subreddits to have an easier way of creating merchandise that they can then sell to their commmunities.
'Whatever you want to make, we'll connect you to our network of quality sourcing partners for a variety of products and walk you through every step of the process so your community can celebrate your connection and show off your pride without all the work,' said Reddit.
While anyone on Reddit an create a campaign, those that are 'official subreddit campaigns,' aka the ones created by moderators, will be featured and get special features, including complimentary ads on reddit for the subreddit they are associated with.
The campaigns created by individuals can also be endorsed as official subreddit campaigns by the moderator of that community.
The profits made from the Redditmade campaign can be donated to any organization, charity, event, or individual 'so you can raise money for the causes that matter most to your community.' Reddit also says that it will provide 'a secure way to raise funds and keep people accountable without charging anyone until the campaign reaches its goal and we start production.'
Some of the current Redditmade campaigns include a Reddit lapel pin for $12.50, a Reddit secret santa sticker pack for $6, Magic Bus headphones for $99.99, and a lot of t-shirt designs. Each campaign seems to have a time limit of 30 days to reach its goal.
Some may question the wisdom of Reddit creating its own crowdfunding platform, especially with heavy competition from sites like Indiegogo and Kickstarter, but it makes a lot of sense in the context of what Reddit seems to want to do.
Last month, after the company raised a $50 million funding round from investors that included Sam Altman, Andreesen Horowitz, Sequoia Capital, Peter Thiel, Ron Conway, Jared Leto and Snoop Dog, Yishan Wong, CEO of Reddit, expressed interest in Reddit creating its own cryptocurrency.
If that plan works out, Reddit would have both its own crowdfunding platform and its own currency, a good way of keeping users in the Reddit loop.
Creating a crowdfunding platform could also wind up being a way for the company to generate some revenue. If they can make it big enough, it would be a boon for them.
On Kickstarter, If a project is successfully funded, the company applies a 5% fee to the funds collected. I estimated that, based on $480 million that was donated by three million people to 19,911 Kickstarter projects in 2013, the company made roughly $21 million last year.
(Image source: redditmade.com)