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Just to further explain myself, if I use a free rss reader like google reader and no longer visit a site such as digg, what is the incentive here. Why isn't google sharing their revenue ? I understand with stuff like feedburner you are more than happy to see those subscriptions go up, but what does google reader to for you or the other free ones.

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What Dan said, and also, if you don't offer such a convenient feature and your competitors do, then you'll be bleeding users no end. Better to have users getting a feed from your site (leeching bandwidth and not contributing to the community or your revenue in general) than to have them go and get their RSS from a competitor (this would apply more to a Digg style site than a blog of course). You can always monetise the RSS feeds later (Tom's Hardware, I'm looking at you...)

User visits site, likes site. Without RSS user bookmarks it and then forgets to visit the site again. With RSS user adds feed and then gets reminded of site when new articles etc get posted, prompting user to return to the site. RSS increases return traffic.

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