One point that hasn't been made is that part of Reddit Gold's success is due to the fun way in which it is presented. Reddit Gold members are jokingly considered to be an ultra high-brow, elite group that hangs out in a lounge with their monocles, top hats, Bentleys, and yachts.
It's a playful inside joke that makes people want to be in it, even if the actual features of a premium subscription are negligible. It's also common to have people give each others gold subscriptions in response to kind acts or as a reward for particularly insightful comments.
There are lessons to be learned for those implementing the freemium business model, for sure, although I completely disagree with people who claimed that this is an indication that advertising doesn't work. Selling products or services often beats advertising (revenue wise), but there is plenty of money to be made with ads. (I speak firsthand, as I've always done well with ads.)
SomethingAwful has had something like that since the early 2000s as well, with some things being purely status, like paying an extra $10 to get a bigger avatar image. Also introduced as a (successful) solution to their previous lack of success monetizing via ads.
(I believe, at least for a while, you could also change someone else's avatar for something like $20 or $30, and they could pay some similar amount to insure it against changes.)
It's a playful inside joke that makes people want to be in it, even if the actual features of a premium subscription are negligible. It's also common to have people give each others gold subscriptions in response to kind acts or as a reward for particularly insightful comments.
There are lessons to be learned for those implementing the freemium business model, for sure, although I completely disagree with people who claimed that this is an indication that advertising doesn't work. Selling products or services often beats advertising (revenue wise), but there is plenty of money to be made with ads. (I speak firsthand, as I've always done well with ads.)