Why do people host Lemmy instances and how do they pay for them?

flashgnash@lemm.ee to Asklemmy@lemmy.ml – 280 points –
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I host my own because it's cheap, less than 10 dollars per month, and I wanted to contribute to the growth of the Lemmy community.

Also turns out that it's another benefit to this: I don't have to get involved in the entire political debate of who federated with who. I just subscribe to communities I want anywhere.

I’m thinking about it. Do you need a domain name as well?

Yes you need a domain but that is usually quite cheap

Or use the raw IP :-D ?

You do need valid TLS and a cert can’t be directly issued on an IP.

Yep you need a domain name pointing to your instance when you run the installation of Lemmy and it will create a let's encrypt https cert for your site automatically.