So how does lemmy make money?

_danny@lemmy.world to Asklemmy@lemmy.ml – 48 points –

I'm not seeing any ads, and these servers certainly have a cost.... So is this place entirely donation based, or what?

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Servers are expensive, either someone pays, or the instance closes.
As of now very few people are on the fediverse, so it's cheap.
But if we expect hundreds of millions of people to use it... expenses will skyrocket.

The logical answer would be for more people to host their own instances in a similar ratio to present.

True, but the amount of instances will probably scale too. You can have premium instances that cost a monthly fee, ones that solicit donations, maybe ones that run ads. But you'll also always have the passion project instances being ran for a specific community out of the kindness of someone's heart.