Reddit: Strategy to Earn Revenue Directly From Its Users
Company: Jar
Role: Product Manager
Category: Product Design & Strategy
Difficulty: medium
Interview Round: Other
You are a product manager at Reddit. Build a plan for making money from Reddit's end users themselves: decide which users to focus on, what they would pay for, what to launch first and how you would judge whether it works.
```hint Users are also the supply
On Reddit the people you would charge are the same people who write the posts, comments and moderation that make the site valuable. Look for things they would gladly pay for that do not let money tilt a discussion.
```
### Clarifying Questions
- Does "monetize end consumers" mean revenue users pay directly, such as subscriptions, purchases or tips, or does it also include earning more ad revenue from them?
- Is the aim near-term revenue, or a second revenue stream that makes Reddit less dependent on advertisers even if it starts small?
- Are logged-out readers who land on a thread from a search engine in scope, or only logged-in users?
- May the strategy share revenue with moderators, communities or posters, or should all of it stay with Reddit?
### What a Strong Answer Covers
- A goal that separates direct consumer revenue from advertising and data licensing, and explains why Reddit would want it
- A segmentation of Reddit users (search readers, lurkers, contributors, moderators, enthusiast communities) with a reasoned choice of whom to monetize first
- Concrete offerings matched to the target segment's willingness to pay, prioritized by revenue, community risk and effort
- Success metrics that net out lost ad revenue, with guardrails on engagement, posting and community trust
- Reddit-specific risks: backlash, pay-to-win perception, moderator goodwill and fraud
### Follow-up Questions
- An ad-free tier removes a subscriber's ad impressions. How would you decide whether a subscriber is worth more than the ads they used to see?
- Moderators of several large communities protest a paid feature you launched. How do you respond?
- How would you price your offering in countries where Reddit earns little ad revenue per user?
Overview: A product strategy question asking how Reddit could earn revenue directly from its users rather than only from advertisers. It tests user segmentation, willingness to pay, prioritizing offerings without harming communities, and choosing success metrics with guardrails.