Reddit’s Contributor Program: Turning Internet Points into Real Money
Reddit, the popular social media platform, made a groundbreaking announcement on Monday. They unveiled a new contributor program that rewards users with actual money for their virtual internet points. Now, eligible users can convert their Reddit gold and karma into fiat currency, which is disbursed monthly.
The Eligibility Criteria
The Reddit contributor program is currently limited to users in the United States, with plans to expand globally. Users must be over 18 years old and verify their identity through Persona and Stripe to participate. Additionally, accounts must have been active for at least 30 days, and only safe-for-work posts can be monetized.
News of this exciting feature was leaked two months ago by Android Authority. A reverse engineer stumbled upon data about the program during an APK teardown, sparking curiosity and anticipation among Reddit enthusiasts.
Turning Karma into Cash
One’s Reddit karma, determined by the number of upvotes received, directly influences how much users can earn. To withdraw funds, redditors must accumulate at least ten gold within 30 days. If this threshold is not met, the balance rolls over to the next month. Users with karma between 100 and 4999 will earn $0.90 per 1 gold, while those with over 5000 karma can earn $1 per gold.
Reddit vs. Twitter’s Monetization Programs
Twitter, now known as X, recently introduced a creator monetization program where select users can earn ad revenue based on the impressions their posts generate. However, there are concerns that such programs may encourage spammy posting or “engagement bait” tactics.
Simplifying Gold Purchases
Reddit has also made changes to its system for awarding gold. Previously, users could purchase coins, which could then be used to buy gold or other awards to grant to high-quality posts. However, Reddit has simplified the process by eliminating the awards and coins system. Now, users can easily buy gold by long-pressing the upvote icon on the app or hovering over it on a desktop—prices for gold range from $1.99 for one gold to $49.00 for 25 gold. Reddit retains approximately 50% of the payment if top users earn $1.00 per gold. Although these features are currently rolling out on the app, they will not be available online until later this year.
Facing Turmoil Amidst API Changes
These revamped payment programs come when Reddit faces turmoil due to controversial API changes. These changes have made it financially unfeasible for many developers to build on Reddit, resulting in the shutdowns of popular third-party apps like Apollo, Reddit is Fun, ReddPlanet, and Sync.
In conclusion, Reddit’s new contributor program is set to revolutionize how users view their virtual internet points. It provides an opportunity for users to monetize their contributions and simplifies the process of rewarding high-quality content. As Reddit expands its reach globally, this program could potentially change the landscape of social media engagement and content creation. However, it also faces challenges amidst API changes, highlighting the ongoing evolution and challenges this dynamic platform faces.