The Discord Business Model: How does Discord make money?

It’s hard to figure out how Discord makes money because they offer nearly everything for free, including high-quality voice and video.

Discord is a voice and video chat application that’s completely free – to download, use, and host your server with.

Not only do they offer features that make it easier than ever to find people you want to talk with and start a conversation, but the app is also ad-free. Additionally, can be set up easily with a virtual number for Discord available in the marketplace

Discord realizes that its users are its most valuable asset – which is why the company provides an online gaming community.

And by giving these gamers a safe place to play games with other players and voice or video chat together in real-time with anyone in the world, Discord has created an incredible experience beyond what other platforms have to make game publishers work for them.

But how exactly does Discord work and how does Discord makes money? Also, what is the Discord business model? Find Discord’s revenue stream, north worth in 2022, its alternatives and competitors, and also the future of Discord in this article.

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What is Discord?

Discord is a voice and text chat app for gamers that lets you quickly find, join, and chat with friends. It’s free, secure, and works on your desktop and phone.

What is Discord

Discord is the best way to stay connected with your friends and the gaming community.  It’s a free app available on all major mobile and desktop platforms and is one of the most popular chat apps for gamers. You can connect with people across platforms, including PC, Mac, iOS, Android, and more.

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History of Discord: How it started?

Discord is a voice and text chat app that allows gamers to connect for gaming purposes. Discord was created in 2015 by Jason Citron, co-founder of OpenFeint, and Stanislav Dohotskiy, a developer who later joined Citron to work on Discord full-time.

The app was developed to fill a need in the gaming community for a more user-friendly and accessible voice chat app.

Since its launch, Discord has been incredibly successful, growing to millions of users. In 2017, Discord raised $50 million in funding from investors, and in 2018, the company announced that it had reached 250 million registered users.

What does Discord do?

The Discord server is where gamers can meet up and discuss their favorite games. It’s a social media platform where people can chat with other gamers, stream events online and meet up in person.

What does Discord do

Discord offers users the chance to set up servers where they can attract an audience for streaming events online. Users can also access various features that allow them to customize their experience by changing themes, avatars, and backgrounds.

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How does Discord Work?

Discord is a fast, secure, free voice and text chat app for gamers that works on your desktop and phone. Talk to fellow gamers in real-time while gaming, use Discord to track your online status for premium games, and more.

Discord uses a server-client architecture hosted on Amazon Web Services, and the client is connected to the Electron framework.

It uses the Opus audio codec, which many VoIP and video applications use. Opus provides high-quality audio at very low bitrates.

The Discord client encrypts all communications with the Discord servers. It helps to keep your contacts private and secure.

Discord is free to use and easy to set up. You can create a server for your friends or join an existing server. Once on a server, you can chat with other members, share files, and more.

It is a cross-platform application, meaning it works on desktop and mobile. You can access Discord through a web browser or the app,  available for iPhone and Android devices. Discord is also available for Windows and macOS.

Discord is a secure platform. All communication is encrypted, meaning only the people involved in a conversation can see the messages.

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How Discord makes money? Discord’s Business Model & Revenue Model

It is a free-to-use voice and text chat service for gamers but what discord business model they use is still confusing. They don’t have advertisements or sell any data about their users. They earn revenue from selling virtual goods to users.

Discord does not make any money from the core experience of talking or playing games on its platform but rather from selling virtual goods to users of its platform, like stickers or emoticons that can be used in chats. The price for these stickers will vary depending on what type of sticker is purchased and how many are purchased.

1. Nitro Subscription Packages

Discord introduced Nitro subscription packages, which acted as the company’s first revenue stream. The service was free for all Discord users but required a $5/month payment to use features such as voice calling and group messaging.

The company has since expanded this subscription model to include other features such as screen sharing, video sharing, and group management tools.

Discord is also home to several third-party services available through its app. These apps enable users to connect in ways that aren’t possible on other platforms, such as Slack or Skype.

2. Online Video Game Sales & Membership fees

Discord launched its game store first in 2018 to take on Steam, and Discord’s game store access only to Nitro subscribers allowing Discord-exclusive games such as Deal Cells or Into the Breach.

The store was quite successful and helped Discord grow its user base. However, it was only a short time before Discord began to slow down due to increased competition in the video game industry.

The company has been trying new ways to make money, so it started selling games in the chat app. Every time a game is sold on its servers, Discord makes money. Each sale generates a 10% commission for the business.

Now, Discord partners with game developers and sells their games exclusively on the app. The company also charges a monthly membership fee, allowing players to access additional features like voice chat and animated avatars.

Subscribers can pay anything from $2.99 to $99.99 per month to group creators. They get to keep 90% of those fees, while Discord receives 5%. For instance, Discord will profit $1.49 if a game sells for $14.99.

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3. Server Boosting Service

Discord boosting service is a community that can improve the usability and effectiveness of its discord server extension.

Discord servers are boosted on three distinct levels. Ultimately, they come with the following advantages:

Level 1:

On level 1, for server boosting and you will obtain services such as

  • More than 50 Emoji slots (for a total of 100 emojis)
  • Audio Quality of 128 kbps
  • Go live streams will boost to 720P 60FPS
  • Personalized server
  • Accessibility to invite background
  • Get an animated server icon

Level 2:

On level 2, you will get everything of level 1, additional you will obtain services such as

  • More than 50 emoji slots ( for a total of 150 emojis)
  • Audio Quality of 256 Kbps
  • Go live streams will boost to 1080P 60FPS
  • Get server banner
  • Get a 50MB Upload Limit for all members (server only)

Level 3:

On level 3, you will get everything from level 1 and 2, with additional services such as

  • More than 100 emoji slots (for a total of 250 emojis)
  • Audio Quality of 384 Kbps
  • Obtain vanity URL
  • Have a 100MB upload limit for all members (server only)

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4. Tickets for virtual events

Discord provides virtual event tickets at some cost. You can buy the tickets in the marketplace if you have a Discord account. The marketplace is accessible through the website or through Discord itself.

Discord has a marketplace where people can sell tickets for events. You can buy these tickets in the marketplace and they will send them to your email address or to the email address of your choice.

They also have a discord bot that allows you to easily subscribe to those events that interest you most by just clicking on them in the marketplace and selecting “I’m interested,” and then subscribing to them.

5. Stickers and Discord Merchandise

Discord offers a variety of merchandise and stickers. You can buy shirts, hats, hoodies, and more.

Discord is one of the most popular chat platforms for gamers. It allows users to join multiple channels and chat with other people in real time. Discord also provides custom emojis so you can express yourself while chatting online.

6. Discord’s Cost Centers

Discord’s multiple cost centers consist of infrastructure, technology, recruiting, content moderation, and trade.

Discord’s core business facilitates communication between people who play video games. It’s an online platform that lets gamers create their server and invite others to join them for gaming sessions.

The company has attracted more than 250 million users for its Discord app since launching in 2015. Its user base is growing at a rapid clip — more than doubling year over year — especially among the millennial generation, who increasingly embrace video games as a form of entertainment at home or on the go.

Discord’s revenue comes from selling ads on the app, charging fees to premium users who want access to features such as voice chat and group chat rooms, and selling in-app items such as emojis and stickers.

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7. Future Growth Engine

Discord’s future growth engine will be the integration of a platform for live streaming. The company’s goal is to create a platform where anyone can stream their games in the comfort of their home or on the go and connect with an audience.

As such, Discord has created a new feature called “Periscope,” which allows users to broadcast their gameplay from any app on their phone.

Discord has partnered with Twitch and YouTube Gaming to provide users with additional features like chat rooms and voice channels.

8. Competitors

Discord is a chat client for gamers, but some non-gamers also use it. The most obvious competitor is Skype, which has a much larger user base and more features than Discord.

It’s also worth noting that Discord does not offer end-to-end encryption, which means that if you’re using Discord to communicate with someone who isn’t using the same app, your messages could be accessed by anyone who intercepts the traffic.

Another product is HipChat. This product offers a free tier, allowing users to create one or more rooms and host meetings. If you have an enterprise account with Salesforce, there’s also an option for HipChat integration.

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Discord Net Worth 2022: Valuation, Funding & Revenue

Discord is a popular chat and VoIP app that allows gamers to connect for gaming purposes. The app has been growing in popularity recently, with an estimated valuation of over $3 billion in 2020.

Moreover, Crunchbase estimated that Discord had a total of $995.4 million across 16 rounds of venture funding.

Discord has raised over $300 million in funding from investors such as Andreessen Horowitz, Index Ventures, and Sequoia Capital. Discord is yet to be profitable, but it is revenue positive, with an estimated $130 million in revenue in 2020.

Discord is a quickly growing company that is revolutionizing the gaming industry. Discord is expected to continue to grow in popularity in the coming years. The app is forecasted to generate $400 million in revenue by 2022, with a valuation of over $10 billion.

Discord’s Competitors And Alternatives 2022

Discord is a prominent voice and text chat app for gamers that offers a free and paid subscription. The app has a user base of over 250 million people and is one of the most popular chat apps on the market.

However, Discord is not the only chat app out there. Several Discord competitors and alternatives offer similar features and services.

1. Steam Chat

Steam Chat is a voice and text messaging application developed by video game developer Valve and monitoring gamers. It is free, but it can be used for free only if you own a Steam account.

Steam Chat

Steam Chat allows users to chat with their friends and other players in their games. Users can also create chats that are not limited to just one person. The app also allows users to make groups with others with the same interest, such as gamers or anime fans.

The app has since grown into one of the most popular virtual communities for gaming enthusiasts.

2. TeamSpeak

TeamSpeak is a voice and text contact application developed in 2001. The first version of TeamSpeak was a simple package that allowed users to talk to each other through their computer speakers.


Today, TeamSpeak has evolved into a full-fledged VoIP application with a wide range of features and a vast community.

TeamSpeak comes in three different versions: Free, Pro and Enterprise. Each version offers various features depending on the type of server you want to use.

If you use your server for your TeamSpeak clients, you can purchase a license for the Pro version; if you use one of our high-quality public servers, you should purchase an Enterprise license.

3. Slack

Slack is a team messaging platform used generally for enterprise use which was released in 2013, it has a clean interface lacking the “gamer” feel of platforms like Discord.


In its early days, Slack was known for being one of the most popular startup tools due to its focus on simplicity and ease of use. Many startups are still using Slack today.

Slack is now more mainstream than ever, with over 1 billion daily active users and an impressive $6.5 billion valuation.

4. Telegram

Telegram is an instant messaging and video calling app launched in 2013. It uses the ephemeral messaging feature to ensure that your messages are deleted after they have been read.


Telegram also provides end-to-end encryption, meaning that a government or hacker cannot intercept your chat history.

Telegram lets you send text messages, photos, videos, stickers, and voice notes. You can also make voice calls over Wi-Fi with one tap from your mobile device.

Telegram is available for Android and iOS devices.

5. Element

Element is a text, voice, and video chat app with primarily focuses on user privacy and end-to-end encryption.


Element is the world’s first encrypted messenger app that only you can access. It uses end-to-end encryption so no one else can read your message or listen to your calls.

The element doesn’t store any messages or attachments on servers — it just stores metadata like the time they were sent. This helps us keep costs down while still providing a secure service.

6. Microsoft Teams

Microsoft Teams is a collaborating and communicating platform that is developed for professionals.

It’s currently offered as a cloud-based service, but Microsoft has plans to bring it to the Microsoft Store in 2019. Teams let you access your files, chat with colleagues, collaborate on projects, and more.

Microsoft Teams

Microsoft Teams is an ideal solution for teams of all sizes. Whether you’re a small team of two or an enterprise of thousands, this platform is ideal for group conversations, file sharing, and working together on shared projects.

7. Clubhouse

Clubhouse is a social media platform having an audio-based design that was developed in March 2020 on iOS and can be accessed invite-only but is now open to everyone.


The app allows users to connect with other people who share their interests in the same thing. It also allows users to create groups based on topics, hobbies, or interests.

Clubhouse uses AI to identify topics, hobbies, and interests of others and recommend them for them to join. The content is curated by a team of editors who work together to make sure the content is relevant for its users.

The Future of Discord: Where’s it Heading & Its Future Revenue Model

Discord started out as a simple chat app for gamers, but it has since evolved into so much more. Today, Discord is used by millions of people around the world for everything from online gaming to sharing and discussing news.

Whatever the future holds, one thing is for sure: Discord is here to stay and it’s only going to get bigger and better.

1.    Opening new revenue streams

As Discord grows, it’s important to continuously seek out new revenue streams to maintain and improve its bottom line. There are a variety of ways to do this, but one avenue that they want to explore is opening up new markets for your products or services.

a. Gamebridge

GameBridge is a software company that uses AI to automate game development. The company’s goal is to provide tools that will make it easy for people with limited programming knowledge to build games.

GameBridge has the ability to create games in any genre, with a wide range of settings and characters. GameBridge also has the ability to create games for any platform, including PC, mobile devices, consoles, or social networks.

b. Gaming stores and arenas

The popularity of gaming has grown exponentially in recent years, with gamers of all ages and backgrounds flocking to online and offline gaming stores and arenas. As the gaming industry continues to grow, so too do the opportunities for businesses to get involved.

Whether you’re an existing business looking to branch out into the gaming market, or a new business looking to make your mark, there are a few things you need to know about setting up a successful gaming store or arena. In this article, we’ll cover everything from finding the right location to stocking the right games and hardware.

c. Revenue Sharing

Revenue sharing is a business model in which two or more parties agree to share revenue generated from a joint activity. This model is often used in business partnerships, joint ventures, and strategic alliances.

There are several benefits of revenue sharing, including aligned incentives, increased market reach, and enhanced product offerings. However, there are also some risks to consider, such as decreased profitability and disagreements over how to split revenue.

If you’re considering revenue sharing as a way to grow your business, it’s important to weigh the pros and cons carefully. This article will help you do just that.

2.    Growing non-gaming communities

As the world of online gaming continues to grow, so too do the communities that form around them. These communities can be based around any number of things, from a shared love of a particular game to a shared interest in a non-gaming activity.

Whatever their basis, these communities can provide a great way for like-minded people to connect and bond over their shared interests. They can also be a valuable resource for gamers looking to find others to play with or to get tips and advice on game strategy.

3.    Considering a future exit

As Discord’s business grows, you may begin to think about a future exit strategy. This could involve selling your business, taking it public, or passing it on to a family member or employee. There are a number of factors to consider when thinking about a future exit, such as the current value of your business, the tax implications, and your personal goals.

Making the decision to exit your business is a big one, so it’s important to do your due diligence and consider all of your options before making a final decision.

Final Words

Discord is a communication platform that provides voice and text chat for gamers. The company has a freemium business model, which means that it offers a basic version of the platform for free and charges for premium features.

Discord makes money through a variety of means, such as Nitro subscriptions, game sales, and advertisements. Discord also accepts donations from users. It has been extremely successful in building a large user base and monetizing that base through multiple channels.

The company has been successful in attracting a large user base and generating revenue.

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