Gamers who use gaming apps often have difficulty deciding how to proceed with their games. However, ever since Discord came with its gamers enclosed communication channel to help them on ‘servers,’ it has been different.
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Discord is well-known among gamers due to its unbelievable and seamless functions. It is a relatively young company that started in 2015 and has its headquarters in San Francisco.
With the growth in gaming technology, people expect several applications to enhance their games and make them more convenient and fun. Gamers find Discord satisfactory in fulfilling their needs and use it instead of any other application. With such fan loyalty, Discord has over 100 million active users across 6.7 million servers.
However, many users and observers are often curious about how does Discord make money to operate and grow the platform. This blog will examine Discord’s various revenue streams and their success in supporting its business model.
Table of Contents
What is Discord?
Discord is a free voice, video, and text communication service that was created by Jason Citron and Stan Vishnevskiy, who initially intended to use it to talk while playing games. It can be accessed through gaming systems such as Xbox, PlayStation, Android, iPhone, Mac, and PC.
Discord has retained the gaming aspect and now has channels focused on music, hiking, and trading cryptocurrencies.
After downloading and registering within the app, users can join up to 100 Discord public or personal communities.
The app is very similar to Slack, where every server can have multiple individual channels for organizing topics for discussion. There is a limit for the number of channels set to 500 for each server.
Users can also send direct messages to one another in addition to the group servers and link third-party accounts—including YouTube, Spotify, and GIPHY—to the server, where they can share content from those accounts with the other members of the server.
What does Discord Do?
Discord offers its users a place where people can communicate and join communities all in one place. Server owners can make specific channels for specific topics, control the communities they create, and adapt them to the servers they own. The features include joining servers, reading and writing text and voice channels, sharing media and moderating, and direct messaging with other users. Discord’s rich platform allows communities to grow and develop, making one feel part of something.
How does Discord Work?
Discord is a social networking service designed for communities to communicate through voice and text channels, private chats, video conferences, etc. The best thing with these systems is that you can use them on Android, iPhone, and even computers. They also perform on famous game platforms such as Xbox and PlayStation. Discord is a group, and in that group, there is a channel that is a kind of special room where people can discuss certain issues.
For example, a group dedicated to discussing digital money might have specific channels for discussing various popular crypto projects such as Bitcoin, Ethereum, or Solana. There also might be an option for active members to discuss the latest trends in digital money and blockchain technology. In other words, the core elements of an average Discord server can be described in terms of channels.
One user creates hundreds of different servers, each of which has 500 thousand members join it. The purpose of these servers is for the players to discuss and exchange information concerning Internet gaming. Text channels can be categorized and have good messaging systems; therefore, they are appropriate for real-time discussions with people.
Also, Discord’s phone services are also better than any other system and are cool. It has video chat services but is not a clone of the very popular Twitch and other such services. It’s not that it is working with Twitch to help Twitch players communicate with each other on the Discord servers when they are live streaming.
Business Model of Discord
Discord operates covertly, with its business model targeting customers in the form of 87 million users. The Discord mobile application is free and has no security issues. The company has no hidden costs for future perspectives or any other significant component of the product.
Discord primarily and solely operates to offer convenient and problem-free communication tools for gamers. It expends significant energy on the voice chat integration service in the gaming industry and provides a free tool known as Gamebridge to assist developers in integrating the application for the games in question.
Furthermore, the company provides many other features, including Streamkit and Rich Presence. These helps provide a free service that allows gamers to find their matches and games in the Discord mobile application.
For instance, Discord is popularly known for gamers. This offers an immense advantage to the company in terms of capturing the networking effects, which increase the value by expanding the number of users. Discord has an estimated valuation of $7 billion, with the latest round of funding of $20 million.
How Does Discord Make Money (Is it a Profitable Business Model)?
So, how does Discord make money? Discord earns its revenue through the sale of premium subscriptions, commission from game sales, and server boosting.
Discord has been using the freemium model as its primary growth strategy. This means that the core platform of the intended P2P marketplace is free to use.
However, power users can buy useful add-ons that improve their experience.
Using a freemium business model, Discord grows much faster as it can attract more users to its platform.
Thus, the owners of some groups have created communities filled with commerce and services. Companies like Adidas are now using Discord to interact with customers as well.
As with many other free-to-paid models, the most important thing is to allow the user to experience the product’s functionality and develop usage patterns with the free version.
It is easy for users to get hooked and improve their usage by paying for those features.
Moreover, the more numerous those groups are, the greater the creators’ motivation to ensure everyone wants to be in said community (and, therefore, subscribe).
Well then, let me proceed to discuss all possible revenue models that Discord uses (currently).
1. Nitro Subscriptions
Nitro subscriptions are one major answer to the question how does Discord make money as the company continues to grow. Nitro has some advanced features and benefits for users compared to similar applications.
There are two subscription plans available:
- Nitro Classic ($4.99/month or $49.99/year):
- Animated avatar and custom tag
- Higher-quality video streaming
- Custom emojis anywhere
- Bigger file upload size (50MB)
- Nitro ($9.99/month or $99.99/year):
- All Nitro Classic features
- Bigger file upload size (500MB)
- HD video streaming
- 2 Server Boosts
- Longer messages (Up to 4,000 characters)
- Custom profiles
- Animated profile avatar, banner, and profile theme
- Nitro badge on profile
- Member pricing & exclusive items
As stated above, many of the features implemented into Nitro are related to the mentioned sense of community that Discord aims at.
As with any other contemporary service, such as Netflix, consumers can cancel their subscriptions anytime.
It also increases sales, as users are not afraid of being locked into a long-term contract and are more willing to try those premium features.
2. Discord Shop
A Discord shop was introduced in November 2023 to enable users to buy avatar decorations and display effects on their profiles. These items, such as limited editions produced in a particular season, can be kept permanently. Nitro subscribers get to enjoy special member prices, and they also get to purchase products that are only available in selected themes. The Discord Shop is a source of income for the company and allows users to have unique avatars.
3. Game Sales & Membership Fees
Discord, the communication app gamers use, entered the gaming services market by launching its game store in 2018, targeting Steam. The game store enabled Nitro subscribers to obtain discored games like Dead Cells or Into The Breach.
It never got off the ground and was discontinued barely a year after its inception. Perhaps recognizing this, Discord was able to rapidly transition into a new model where it aligns with game developers who sell games solely through their Discord servers.
First, developers must verify their servers. Subsequently, Discord will share information about the game and the server on its platform to provide developers with the necessary exposure.
Discord earns money when a game is sold on the servers it hosts. It also controls sales by taking 10 percent of the sale price. For instance, if a game costs $14.99, Discord will take a $14.9 cut from the sale.
Likewise, Discord has also introduced a Patreon-esque feature through which those who own the groups can ask their members to pay to get into the server.
Group creators can set the charges for the subscribers ranging from $2.99 to $99.99 per month. However, the rest goes to Discord, as the platform they use to earn the fees retains 90 percent of the amount.
The product is still evolving, having been developed and released in December 2021. For instance, in the past few months, Discord introduced its analytics dashboard and custom server emojis.
4. Server Boosts
Server Boosts are another way on how does Discord make money. They enable users to earn additional bonuses and perks for their favorite servers. For instance, by buying “boosts,” users can enhance a particular server’s functionality and performance in three stages.
Each level depends on a specific number of boosts, providing more subtle features like increased upload limits, better audio quality, and more emoji slots. A server boost costs $4. 99 per month. From the above details, it is clear that Nitro subscribers will get a 30% discount when they choose to scale up their servers.
| Level | 1 | 2 | 3 |
| Boost Required | 2 | 15 | 30 |
| Emoji Slots | +50 Emoji Slots (for 100 emojis) | +50 Emoji Slots (for 150 emojis) | +100 Emoji Slots (for 250 emojis) |
| Audio Quality | 128 Kbps Audio Quality | 256 Kbps Audio Quality | 384 Kbps Audio Quality |
| Upload Limit | 50MB Upload Limit (server only) | 100MB Upload Limit for all members (server only), + everything from Level 1 | 100MB Upload Limit for all members (server only), Vanity URL, + everything from Level 1 and 2 |
Level 1 is unlocked when two users subscribe to the service by paying a subscription fee. The subscription fee for Level 2 is 15, while Level 3’s is 30.
It also serves as a means for direct monetization for Discord and cultivates people’s engagement and interest in the platform. As highlighted in the table above, the following are some of the perks and requirements attached to every Server Boost level. Discord has developed an effective monetization strategy that allows users to directly contribute to enhancing their favorite servers, thus being consistent with the platform’s principle of being a home for diverse communities.
5. Additional Revenue Streams
Discord has multiple communities and events that keep users engaged, making it easy for the company to generate revenue through advertisem*nts, collaborations, and merchandise.
Discord’s other revenue source is the sale of branded merchandise such as hats, hoodies, sweatshirts, and T-shirts to users, again boosting the company’s brand recognition.
The company frequently restocks its stock with new limited-edition products and collaborations to make customers feel special and encourage consumption.
Interacting with users on design ideas guarantees that merchandise is popular among users, thus boosting its sales and users’ loyalty to the brand.
Discord has not interrupted its users by running ads that interfere with the experience, but it has offered brands limited ways to advertise to its users. This specific strategy aims to improve the usability and popularity of the products and services presented, as they will be targeted based on the user’s preferences.
This should raise the platform’s appeal and generate more revenue streams from brands and creators.
6. Ticket Sales for Virtual Events
Recently, Discord has been experimenting with a feature that would let the server administrators sell tickets to events hosted on the server, thus opening up a new source of income.
7. Partnership & Sponsorship Deals
Partnerships and sponsorships are ways through which Discord works with game developers, content creators, and brands. The company aims to help and promote game developers and content creators to inform more people about their products.
Some of Discord’s partnerships are focused on special content, games, and cooperation with popular personalities and companies. These partnerships make money and try to enhance the brand and its position in Discord communities.
For example, Discord has a streaming service integration with Spotify where people can link their Spotify to share what music and podcasts they listen to on their profile or listen to music on a server.
The Freemium Approach of Discord
Discord has a free version but follows a freemium model, where users can pay extra for enhanced features and services.
This makes it possible for the company to target a large pool of users to develop habits with the paid version of the application that is taught in the free version and get the most active users to pay for more as the app becomes part of their routine.
According to Statista data, Discord’s mobile app earned nearly 31 million USD in the last quarter of 2023, up 6 percent from the last quarter of 2022.
Discord’s freemium monetization model also ensures that servers and content creators offer the best user experience to capture subscribers’ attention.
Future Growth Engine
The company plans to expand on the services and features offered by the Nitro Package in the years to come. This means that Discord will always maintain the chats and messaging services free; however, the company has plans to grow the ‘premium’ services.
The company released GameBridge, believing it would enhance the service’s value and business model. However, after its release to the public, Discord pulled it after a few months of use. To achieve that goal, it plans to reintroduce the GameBridge service with a better product.
In the future, Discord may increase the sphere of gaming and stores as it continues to attract new developers and users, promising them a new revenue distribution. The company must also incentivize game developers to create new games and attract new users to the platform.
How do you start using Discord?
When you start Discord, it opens with the ‘Home’ window. You can see your friends list in the main window on the screen you are currently at, and on the left side of the screen, you can see which servers you are currently in. Well, you’ll need someone to talk to! Each user has their own Discord tag, which is a username and ID number linked to their account, and they can share these with you.
If you want to add any of them, there is a ‘Add Friend’ button at the top of the home screen. You can send them a text, voice, or video message if they have accepted your friend request. It is also possible to invite other users to a chat, although if you intend to invite people to the chat very often, it might be more effective to do it on a server.
How to create a Discord server?
Making a server is incredibly simple, and you don’t have to spend a dime. Servers are presented in the leftmost column of the Discord client. If you have not done this, click the ‘Add Server’ button on the page. It lets you set up your server easily by just answering the questions and using the templates provided by Discord.
The modus operandi is as simple as responding to a few questions about the server, like whether it is public (anyone can join) or private (friends only), setting a name for the server, and that is it. A server has been created. You will be able to manage the server the way you want to, without any restrictions. If you want to add other people to the list, go to the list of channels on the left side of the server’s screen, right-click, and choose ‘Invite People.’ This makes it possible to invite friends directly from the friends list when using the application.
You can also generate an invite link, which you can share with anyone who can become a server member without your direct invitation. Pasting the link in the address bar of a browser will take people to your app server. This allows you to create text and voice chat channels for the server users and lets them use voice and text chat as the main channel.
Like that, Rocket League gamers will not disturb the Fall Guys or distract them in any way. You can ban troublesome players from the server or move good players to take advantage of the admin tools you have full control of on the server.
Discord Voice Chat
On the Home screen, you can also send direct messages to friends through the Discord direct message feature. A voice call can be initiated by going to the friend’s list and then selecting the friend’s name and ‘call.’ he will be informed that you are calling him, and you can talk as long as you wish.
To make the call, you will need a pair of headphones with a microphone connected to the computer. Servers have voice channels. This is where groups of users will form, and all the group members can chat at once. This is like being in the same classroom; you can more easily sync up in games. This helps to make multiplayer gaming a whole lot easier. These are most commonly open for all the server’s users, but servers tend to set their channels for specific purposes. People who wish to play the same game but not in the same mode can use it for a specific game or even a specific game mode.
You could have one for Fortnite Battle Royale players, while those interested in Fortnite Creative are in another channel. Entering a voice channel will enable voice for you, so you can hear anybody speaking in that voice channel. Voice chat has a few settings. It can be set to ‘push-to-talk,’ meaning that the microphone will only be active when a specific key on the keyboard is held down, or it can be set to turn the microphone on when it detects sound at a specific level. You can also turn your mic ‘free,’ which means it shall constantly be on and transmitting.
Discord Text Chat
A Discord server could have many text channels. Mostly, they are employed for questioning and answering sessions, telling jokes and memes, or any casual conversation that does not require a microphone.
There will be a single General text channel when a new Discord server is created, but the admins can create as many channels as needed for various purposes. These could include a general Server Announcements and Rules chat or a specific game chat like a Fortnite channel. The admin and the users of the server decide this. Text channels can be made ‘read-only,’ which would be good for a Rules channel.”
Most text avenues will be available for users, and no obscenity censor will black out the conversation. However, there is a censor that will try to prevent an obscene image from being uploaded.
Discord Video Chat
Discord also supports video chat if you have a camera connected to your computer or through an external camera connected to the computer. As voice chat, you can initiate a call with a friend on your list from the friends list or the Home tab of the Direct Messages section. The camera icon begins a direct call to the person you choose from the friend list. Servers can also support group video calls of up to 25 participants. These can be initiated in any of the voice channels. Upon registration, the user can enable the video feature to initiate a video call or participate in one. It’s quite similar to Zoom and can host large meetings.
Game Streaming in Discord
You can share your screen with your Discord friends and all the communities you are in. It’s not like Twitch, YouTube, or Facebook – it’s not supposed to be a performance for anyone else to watch. It’s just the next level of video call. You can do it in a direct message through the home screen or in the server’s voice chat. It is limited to the server and channel you tried to stream in. It can be used to report progress in a game and invite friends over, boast about a recent buy, or seek help.
You can stream other screens, like a paint program you are working on. While you can broadcast a screen with your video stream, you can’t put the screens side by side to display your playing picture-in-picture. If you do not purchase Nitro, streaming quality is restricted to 720p and up to 30 frames per second. Nitro users can stream as high as their source resolution at a maximum of 60fps.
Competitors of Discord
Discord is expanding and is quite popular with the gaming and live-streaming audience. Nonetheless, this is the world of technology, where things change quickly, and trends can be killed instantly.
Indeed, other companies operating in the same industry as Discord offer the same service. Some are better, while others are not. But it makes sense for gamers and live-streamers to have backups for their businesses.
Other companies provide a service similar to Discord’s.
- TeamSpeak is an application for group voice communication over the Internet for online computer games.
- Troop Messenger – an all-rounder in the instant messaging space.
- Chanty – it’s a team collaboration tool.
- HeySpace is designed to help teams manage their tasks, communicate, and schedule meetings.
- Slack – a cross between IRC and email that allows you to communicate through channels.
- Mumble – open-source voice chat application developed primarily for gamers.
Conclusion
Discord has proven that it has a strong and efficient business model that will help it make money and grow. We have the blog answers how does Discord make money? In this way, Discord has created a diversified and lucrative system of services, including subscription services, games, boosters, and cooperation. The freemium model allows the company to gain a significant number of users, and the paid functions and opportunities to monetize multiple times help increase the company’s revenues.
Discord has become a valuable asset and a source of comfort to the gaming fraternity. It also offers gamers the opportunity to communicate and coordinate efficiently. In addition, the company provides many other services and specific software. Gamers engage with the Discord application actively, which results in positive outcomes.
Frequently Asked Questions
Is Discord free to use?
Yes, Discord is free and comes with many features that you would expect from a paid application. However, users can subscribe to Nitro for extra features and privileges to be granted.
Can you make money on Discord?
Discord makes money through various sources, but individual users can also make money within the platform. Server owners can sell goods, services, or premium content and merchandise to community members, which means they are ways to make money.
What is replacing Discord?
Despite its continued popularity, Discord has competitors such as TeamSpeak, Mumble, and Slack that offer similar services. Nonetheless, Discord has features that competitors do not, integrated with the community-building tools and the platform’s simple and intuitive design.
How does Discord make money if it’s free to use?
Discord earns money through Nitro subscriptions, game sales, server boosting, and partnerships. The application's free variant attracts users, while the paid features and extra services earn the company money.
