reddit Founder Alexis Ohanian

The idea of crowdfunding is already more than accepted among Internet as a way to buy more goods, while helping creators and entrepreneurs. But what happens when this concept comes together with one of the most influential Internet communities?

The result is Redditmade, a new service created by Reddit Inc., one of the largest aggregators of network news. It is often said that the best part of the web has always been its communities, and Reddit has a chance to prove it.

This launch is part of Reddit’s diversification strategy, following a $50 million funding round by the firm last month. CEO Yishan Wong plans to integrate the ability to use a virtual currency to Reddit, which could be consistent with the Redditmade project.

Crowdfunding by and for the community

Like other crowdfunding platforms, users can create a variety of different campaign rewards (for now, it is limited to T-shirts). There’s an option for custom campaigns, so your product can still be made and shipped to campaign supporters. However, unlike other platforms, Redditmade seems to be more of a marketing channel for people who want to sell merchandise rather than being purely a place where people can raise money for products still in development.

Similar to other crowdfunding platforms like Kickstarter Inc., Redditmade gives the money raised to the creators of the project. Redditmade, however, is a point of differentiation – the creators of the project may choose to keep the money or donate it.

By default, the campaigns will have a duration of 30 days. Redditmade will not make public any user data that contributes money to the project. To donate, you will need to link the project with the username, but Reddit will not store any banking data or user identity. Redditmade only request the user’s address for shipping.

Will Redditmade succeed?

Redditmade certainly has numbers on its side. In August, Reddit had 174 million unique visitors who accessed over 6.1 billion page views and 3.27 million registered users. Yet Redditmade competes with an established crowdfunding market, made popular by the likes of Kickstarter and Indigogo Inc.

Still in beta, Redditmade isn’t as open as Kickstarter. The majority of the site is focused around t-shirt and sticker sales, where the designer submits the artwork and sets a price. But Redditmade hopes to appeal to users with the promise of a “no risk and zero cost” experience, offering to guide campaigns and even work on their design. On rival crowdfunding sites, campaigners may have more freedom for campaign rewards and incentives, but the hands-on help often comes through third-party services.

Another factor for Redditmade’s success is whether or not the crowdfunding initiative can help Reddit become profitable, though the company says its goal with Redditmade is to merely cover the costs of running the new service. Reddit also takes things a step further by encouraging users to donate any extra cash they bring in.

photo credit: Redfishingboat (Mick O) via photopin cc