Reddit isn’t profitable at all. Reddit is a perfect example of traffic doesn’t always guarantee profit. The problem is reddit appeals to opinionated keyboard warriors. People that love to share their opinions but don’t really have any money to buy anything.
Advertisers have repeatedly reported very low ROI’s with reddit advertising. Another thing is if your ad isn’t ‘reddit ready’ the users will flame you really badly. So in other words you’re paying to have people make fun of your company/product and not buy anything. Although now they have a better system I heard where the staff will hold advertisers hands to make their ads ‘reddit ready’.
I don’t foresee Reddit gold ever being the cash cow they seem to think it will be. The rule of the internet is people want it fast, convenient, and free. Period. Even if they bitch and moan about their privacy being violated they’ll tolerate their private messages being spied upon rather than pay $5-$10 a month for social media. Youtube has been trying really hard to monetize its user base for over 2 years now with very little success. I think they have 1 million subscribers only. Yes for a site like youtube 1 million is ‘only’.