Honestly, I'm more surprised to hear that a social site like Reddit makes a profit. I've never got the business model knowing how bloated companies like Reddit can be due to the venture capital model.
I agree that venture capital is a major distorting factor in the economy. It is definitely a fiat-driven phenomenon. But still...
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Why are so many big newsletters profitable but not Reddit? It seems like targeting for ads would be precise based on the subreddit topic...
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Newsletters are very different. You dont need servers, devs, qa, HR for a email newsletter.
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