How are lemmy and other fediverse platforms profitable?

Reddugee@lemmy.world to No Stupid Questions@lemmy.world – 49 points –

Reddit migrator here (shocking, I know)

Just wondering because I found out about all this yesterday and just realized the ammount of independent servers, but no sign of any ads or sponsors. So... is it all based on donations?

Also don't just lurk, if you know you should answer because lemmy only counts users who posted or commented as active users.

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They're not - Some instances have a clearer funding structure than others. I picked Lemmy.world in part because they have a clear source of donations.

https://opencollective.com/mastodonworld/donate?interval=oneTime&amount=20&name=&legalName=&email=

The open collective link goes to Mastadon world. Is it related to Lemmy.world? I look on lemmy.world website, and I don't see a clear link to funding.

Run by the same people. Donations to that link are used for both.

Some have raised concerns about wanting to fund one but not the other (e.g. earmark their donation to Lemmy but not Mastodon) but the admins said they weren't gonna do that yet.

It doesn't have to be profitable. Especially for people that already have computers running 24/7 and good Internet, a Lenny server is just another process they run on their machine. Admin/mod duties would probably be the hardest part.

Like many said, it's not about profitability but sustainability. I signed up to donate $2 per month to help run the servers for lemmy.world. I'm very happy with this instance (and the fediverse in general) and want to contribute. There are plenty of other people willing to do the same. Together, we will make something much bigger and better than reddit over time.

I love their $8/month tier description: "The $8 verified user tier. You'll be allowed to place a blue checkmark behind your name. You'll have to do that yourself though. And you could also do that without donating ;-)."

I think this may be the wrong question. I am the administrator of a reverse engineered PS3 video game server, so it's illegal for me to make a profit or any kind of revenue or donations from that platform. However, I maintain it for thousands of users simply because I and others enjoy it and want it to exist. That's not a sustainable model for a business or for running something as gigantic as reddit, but it's what I want and enjoy, and for right now it's affordable, and I'm happy with that.

People like you make the internet a better place :)

Not counting the cost of your time, how much money do you spend on this server?

It costs me roughly $15-25 a month to host our game server, but I have other costs like our website that I'm dealing with as well, so taking all those other things into account and I'm probably spending something like $30 a month for now. I'm actively working to migrate my Wix site to WordPress to save money. Now, if we had thousands of concurrent users instead of like 30-40 concurrent users on a typical day, or if we needed significantly more storage, my costs would probably go up a lot. The growing storage and user count are both important things I'm thinking about carefully, because I imagine there might come a time I need to reevaluate our strategy

Thanks!

All things considered, spending $30 a month on a hobby is pretty good.

Why does everything have to be for profit?

This is the real question we have to ask ourselves. We really need to move away from looking at the internet as just a resource to extract money from, and instead see it through a social lense again. Look what late stage capitalism has done to our digital, social gathering places. Almost everything has become a product that needs to be profitable, to compete for attention and to extract as much data from users as possible and discourse has suffered greatly from it. I mean billions are donated to content creators simply because people want to contribute. Why stop there? We can shape the internet the way we want if we simply contribute and put our heads together. We don't have to make a profit. That's our strength.

I like this take.

Due to life circumstances, I basically live on the internet, and have since the late 90s. My first comment on here was about how I support socialized social media.

I want to go back to a time when I could actually talk to random people, and have meaningful discourse, even if it isn’t as big of a community or as content-filled. I want my social space to be interactive, not passive.

Profit-seeking models push for passive consumption rather than actual meaningful engagement. I’d much rather have a non-profitable platform that people keep alive because they want the same thing I do. I’ll donate to it, as long as it stays that way.

One of the points of federated and decentralized social media is that there’s no need to profit. The concept is that communities are built by individuals instead of a central institutions and the communal gain is what incentivizes folks to host servers and participate. I see it as a similar ecosystem as the open source software community who constantly gives everything away for free because it serves the common good, enables faster innovation and widens the spread of knowledge that makes everyone more successful/efficient at the end of the day. If these decentralized social networks can provide the same level of benefit as Reddit, I.e. people adding “Reddit” to their search queries to get first hand answers, I think that’s the singularity point at which people will realize giant social network corporations are completely unnecessary. I can’t wait. Seems inevitable to me because the entire business model of the current centralized networks is unsustainable - part of the reason you see Reddit making such drastic moves regarding their API or Meta investing in anything and everything outside of social media or Twitter throwing unnecessary digital products at the wall and hoping people pay for some of them. Once decentralized social networks are mainstream the ad target pool is going to be greatly affected and these companies will collapse under their own weight if they haven’t pivoted to something else.

What's the general consensus as far as fear for future profiteering? Right now these platforms are great because the are run by people who genuinely care. Do you think there is any risk of this growing so much that federated content reaches the front page of search engines, followed by advertisers wanting space here? Or what about risks like reddit gold which was initially just a fun add on, which then became a "temporary" paid feature, which ended as a full scale scam.

Anyway, I love what we have for now, I just want to know what everyone else is speculating for the future.

Meta, a well-known for-profig company are gearing up to join the Fediverse, reaction is mixed, some server operators seem keen on welcoming them, some cautiously optomistic while others want nothing to do with Meta at all.

In terms of paid features, might be a thing down the line but it will very from server to server. Cool extra statuses (e.g. Wow I'm a gold tier superstar supporter on this instance) likely won't appear on other instances unless they decide to include something in the federation protocol that would display it.

The thing with the Fediverse is that things like this aren't really possible. The creators of Lemmy are pretty anti-capitalist, so the source-code won't ever support ads.

An instance admin could try to modify it to incude Ad Sense, but the users would just reject that instance and move to a free one.

I personally wouldn't mind premium features, like animated emotes and stuff for people that pay for monthly subscriptions, but again, things like that don't work in the fediverse because they won't be supported on every instance.

Maybe there will be some creative solutions that get made, but it's highly unlikely due to how things are setup.

Any Lemmy/fediverse instance could come up with a localized monetization scheme for people that browse through it, but it wouldn't affect other instances (or if they were injecting ads into feeds, they'll just get blocked by everyone else), but for the most part, it's got more of an IRC server vibe, no monetization needed when community volunteers are plentiful and the barrier to entry is low. Eventually 'big boys' like Lemmy.world will want a more formal and reliable way of paying for their server and bandwidth needs beyond primarily unsolicited donations ($ and time) by volunteers.

These are not profit generating services, they are community services. For now.

This has come up multiple times in recent weeks, naturally, but it's interesting that it's always framed as being about profitability. As if simply being affordable or sustainable isn't enough.

Communities being a source of free value for the server admin is always baked into the discussion.

Centralized, corporate social media has done... bad things for how we see and interact with the world.

Donations, or with a small enough instance a server admin might just pay out of his or her own pocket. Maybe if Lemmy were ever to get much bigger there might be paid or ad-supported instances.

I think a big part of the point of federation is that the costs of hosting servers can be distributed so no one has to spend millions to keep their server running. That way there is less of a need to monetise an instance (and less of an incentive, as if you start doing anti-user stuff, people can just move to a different instance).

I mean, Wikipedia does it and they're the 7th most visited website on the internet. 🤷

They aren't. Do they need to be, though? Maybe once the scale gets gargantuan, but even then - is it strictly necessary to be profitable? As long as donations cover costs, I assume most instance administrators want what the rest of us want - a good platform for discussion and content aggregation.

(Apologies, didn't want to shitpost on a top level comment)

I agree with this sentiment, there are a lot of admins who are very virtuous and and will pay money out of pocket and dedicate time to this cause which is appreciated. The big thing in the beginning is the actual time it takes to run an instance, when servers get big they are going to need employees, no one can be on call 24/7 for something that costs them money (with the exception of a child).

Once Lemmy has around a million active users funding the actual server costs will become a problem but I'm sure people will figure out how to make money off of it well before then, wether it be ads, data selling, alternative services, subscription models or something else.

Whats important right now is that as a community we do what we can to keep this place alive, and to help out the hard working admins.

The short answer is it really isn't profitable, and will be hard to ever be profitable simply because of how it is indeed run by donations.

Being able to spread the load over many independent instances does help to spread that load.

Things can be valuable without being profitable. A hug from someone you love does not generate any profit but is still a good thing that should exist. Likewise, a community resource like a Lemmy instance does not need to justify it's existence by being profitable. It can simply exist as something that people get value from. The fact that we often lose sight of this is a result of living in a capitalistic society that over-emphasises the value of something producing profit and underemphasises any other possible value. As for the implied question of, how does a Lemmy instance get the money to pay the costs required to run it? That's going to vary from one instance to another and how that money is raised should be a factor in which one you sign up to and which ones you connect with. In the case of Lemmy.world, it is, afaik, presently (and likely in the future) run as a non-profit for it's own inherent value and is funded by user donations. A big point of federated communities is to allow those communities to be able to operate for their own benefit, rather than be reliant on commercial investment that will later create a tension of different incentives.

I don't think a hug was a good example, for the exact reason you mentioned in the second half of your comment. A hug does not cost anything to give, other than a small amount of time. Everyone gets time for free, until they don't anymore.

Servers cost money AND time, both to get and run the equipment. Not to mention regular maintenance as hard drives especially don't last forever. It's easier to do something unprofitable for the sake of it being a valuable thing, such as picking up trash on the side of the road. But most people can't just give shoes to the homeless because it's a good thing, simply because that costs money and time, which the average person does not have an exorbitant amount of money to give away.

To me, the question is moreso how do lemmy instances get the money to exist, and OP just used the wrong word. Which as you mentioned, through donations. I also think it would be a pretty neat feature to have a setting where you can enable ads (off by default) to further support the instance without having to directly enter your credit card information.

To me, the question is moreso how do lemmy instances get the money to exist

Yes it is.

That is not the same thing as making a profit.

They're not, and profit isn't the reason people run Lemmy instances. In fact, avoiding the problems that arise when human communication is capitalized upon is a driving theme behind open source software and federated social media.

Its been so long since ive been on a part of the internet like this, it used to be almost all like this, now its almost all a buisness.

Right. I'm loving this. It is a huge breath of fresh air. Obviously the people hosting Lemmy.world have to pay for this though. If they put out a subscription that was minimal in cost I would pony up even now with the jank and all. This place is worth investing my time and energy into I feel.

Profit might not be the point, but it is going to cost time and resources to run an instance. Unless the admin is just planning on paying for everyone's ability to use Lemmy on their instance out of their own pocket, ads or subscriptions may be necessary. And depending on how much time and effort goes into keeping it up, it wouldn't be unreasonable for them to want to make a profit on it so they feel like it's worth the effort.

I'd hate for an instance to blow up in popularity only for the admin to decide it isn't worth the time/effort/cost and shuts it down.

They're not, it's just donations so far. Reddit actually used to profit from donations only too about 10+ years ago and had a bar showing how much they earned every day vs how much they need to run the servers.

I wasn’t aware of this! I was reading through these comments and thinking that would be nice to have here too. It would echo the nice amount of transparency if something like this was implemented. Are there any downsides to showing this info?

The only downside is that it's bad for business. Donations will naturally slow down once users see that revenue > expenses, or users will start expecting some extra features to be added with the extra funds etc, which they rightfully should.

It'd operate like a NGO would and should but as a for-profit business (which is not ideal since they wouldn't be regulated and audited as an NGO). Even if it does register as NGO, the show runners still get to decide their wages at the end of the day. And what's stopping them from inflating the figures shown to users? They could say it costs $2m for overheads and pay themselves $1.5m as wages.

Reddit the company has never been profitable either, it ran on VC investments for years. But more accurately, the real Reddit, the communities, never needed to be profitable because it was run out of passion for the subject matter of the subreddit. The former isn't a problem for the fediverse because there isn't an entity overseeing everything, the latter sorts itself out naturally as more motivated individuals join this community.

I'm donating $5 to the Lemmy devs and $5 to Lemmy.world currently on patreon.

The admin of my local lemmy instance is very transparent about hosting costs and has a ko-fi for donations. Last I saw there were enough funds to last several months but I have seen additional activity on the donations since. They have a strong focus on a geographic community and it looks like there is no shortage of people happy to contribute because of the need that fills.

It depends on the instance, some don't have much of a reason to exist and are probably going to be an out of pocket thing for a sole operator as a hobby project until they lose a job or get bored. Others are going to have some more structured organization running them with some sort of funding structure.

i contribute to patreons of lemmy.world and the developers of lemmy. hopefully there’s makes enough of us to make this financially viable

The word you're looking for is sustainable, not profitable

Long term, I see business opportunities for ad supported or paid instances with enterprise level management (reliability, maintenance, scaling, backup). The important factor is that they can’t lock you in - if you decide you don’t like the policies at your current instance, go find a new one.

I suspect we may also see more instances focused on very specific topics to keep operating cost down.

Agree, and such instances would be more resilient to federation issues. I think communities should be spread out on small instances, while users are concentrated on larger instances with better infrastructure.

Would that make you lose your comment history and username? For example I needed to create separate accounts for Beehaw and here. It’s similar to using different forums in the late 90s/early 00s in that way it seems.

If an instance you had an account on went dark, you would lose access to that account, and the ability to view your comment history in isolation. As far as I can tell, the comments you made in communities would exist as long as the instance the community is on exists. Same with your username - there isn't a mechanism for making them globally unique beyond appending the instance domain name (again, just like e-mail).

Beehaw is kind of a special case right now because they have chosen to cut themselves off from a number of other Lemmy instances including lemmy.world. Normally you wouldn't need multiple accounts - I read and post on multiple instances from just my lemmy.world account. You can see remote instance communities under "Communities" / "All". If one you are interested in isn't there, you can search for !community@instance, and wait a bit. That starts the sync of the community to your instance, and you should be able to access it a few minutes later.

I think a good business model is similar to your idea, but with a twist:

Unless accounts become portable across instances, I could see best practices shifting towards users having their own personal instance so that they control it and thus can't lose access to their history etc. But since ain't nobody got time for that, I imagine the business model being companies providing turnkey personal instances and getting paid for hosting and management.

Oh, I definitely see a future where e-mail providers provide fediverse access as part of their service - gmail or iCloud or whatever. There will still be demand for pseudonymous ids, but there's a place for real ids as well.

Being a shared service, Gmail is not what I mean (unless you're talking about Google Workspace, I guess). I'm talking about providing Lemmy hosting for custom domains so each user gets their own instance. Think @cerevant@cerevant.tld instead of @cerevant@lemmy.world: The paid service does the actual hosting and admin tasks, but the user/owner controls the policy (that only applies to himself) and thus can't get booted off, only defederated.

...Hmm, the more I write about this the more it sounds susceptible to the same problem that self-hosted email has (the spammers ruined it, so all the big services preemptively block mail coming from less-than-well-known domains and don't even give them a chance to prove their legitimacy). I kinda feel like it might only work if personal instances became the norm, and wouldn't be tenable if small instances and big instances had to coexist. I guess it just goes to show how many unknowns there are about how the Fediverse will mature and scale.

Another important factor to note is it takes a fraction of hosting power to host lemmy vs something like reddit, because reddit does an insane amount of power hungry tracking in the background. Lemmy (and apps like jebora) don't collect anything, so don't need to constantly stream all that data to the main server instance

"lemmy only counts users who posted or commented as active users."

What exactly did this mean? What are the benefits of being an "active" user, or the drawbacks for not? Does that impact the effectiveness of that user's up/downvotes, or something?

It's just used as a way to count users per server, I believe. People who aren't commenting could be bots or just unused accounts.

This is just for the statistics that show the number of active users on a platform/instance/community level.

I'm pretty sure Lemmy has been designed specifically so it can't me monetized. If you try to place ads people can just switch to another instance. If you try to split off from the fediverse I'm pretty sure there's enough data on other instances in order to clone your server along with its content (and mind that you don't own the copyright for posts made by users).

I would go as far as to say the point is that it’s not for profit. Profit incentive ruins everything, most of all online services and platforms.

I think it's more than just "not for profit" - there was actual effort to make this platform as difficult to monetize as possible (probably as a lesson learned from Reddit lol). Let's begin with the code - it's under AGPL, which means you can't set up a public Lemmy instance without making its code public. This prevents you from creating an improved version and keeping it to yourself to gain an advantage over other instances. Second, the fediverse means that it's less likely for a single instance to become so big that it can unfederate itself without consequences, and while you're federated you can't really place ads - people would just view your community on another instance.

I don't agree - while you could copy it, if an instance gathered a large user base and had some well-implemented quality of life features, there's nothing stopping them from putting ads on it and I'd guess that most users would continue to use that instance. If it has quality content, they already have an account, and it has compelling improvements over other instances, I can't imagine that some unobtrusive ads would bother people enough to go to a clone of that instance and create another account.

Sure, it could be done, and ad blockers are common enough, but I don't think well-placed ads would cause some mass exodus. I'd even be okay with it if it's in the name of paying the server bills for such an instance.

I think it's more like a hobby, it doesn't necessarily NEED to be profitable as long as you and other people enjoy it and contribute to it. So far I'm loving it and it really feels like a breath of fresh air compared to reddit, especially without the karma system

The funny thing is that not all human endeavours actually need to be profitable for them to exist. It's perfectly fine and normal for people to be generous and provide services for the community for nothing in return and for some of those in the community to help out too.

I'm going to split a hair here: any endeavour needs to be financially sustainable for it to continue existing. So yes, in terms of future growth of federated platforms, i am mildly concenrned that there may not be enough people willing to put in the work and expense of maintaining an instance just so free. If you imagine a future where the fediverse has Twitter or Instagram levels of users, it's pretty likely that instance owners will want to monetize as much as possible, and then what happens?

it’s pretty likely that instance owners will want to monetize as much as possible, and then what happens?

why is that "pretty likely"? People have been running services 24/7 for years, sometimes out of pocket, sometimes with basic community support. It does not have to be profitable, as you said, it has to be sustainable, which is vastly different.

it’s pretty likely that instance owners will want to monetize as much as possible

I disagree. It's find to have hobbies that don't make money. Running a lemmy instance can be that.

Running any decently sized instance quickly turns from a hobby to at least a part-time job. A thing that you can't just quit whenever is not a hobby and we should be mindful of that.

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Lemmy isn't profitable, and doesn't plan to be. It's not designed to be a moneymaking enterprise, it's designed to be an decentralized community running on P2P open source software. If you work in the web development or IT industry full time, you likely have the skills to set up an Instance of your own for little or no cost, even of its just a side hobby on your personal computer.

Yes, in a way this means we are the equivalent one of those massive 'miniature' train sets that adult hobbiests play with in their garage.

I would like to see the host push ads, so that it's sustainable. It doesn't have anything negative to the community except it will sustain the instance do does the Fediverse.

Ive seen some things (totally unrelated mobile apps) make ads optional. I think its a good idea if youre iffy about having them but do need them to keep the site up, im sure people would be happy to enable ads to support these types of sites. Plus cant be any worse than the shite youtube has for ads

I'm considering a free version on the app stores with limited ads(subtle and no tracking), a paid version without them, and one with optional donations on alternative stores.

I don't like ads and I don't want to shove them down unwilling throats, but most people don't care (and frankly I need the money)

Among the ones that do, there's those that hate seeing them, and ones with privacy concerns. If I make them subtle and offer an upgrade to remove them, I hope that'll satisfy one group, and the other one can get a build where the ad libraries were never installed in the first place

I run my own instance just because I want to build a community that people can enjoy. I do it out of my own pocket and don't ask for donations of any kind. Not everything is about profit for some people. If I were running a site as big as Lemmy.world, then I would consider it, but only to cover some expenses.

This. We need to stop seeing such online gatherings as opportunities to be profitable. I personally view them as social interactions and opportunities to exchange random and interesting information. Water cooler talks or forums (the ancient greek/roman sort - I wonder how many shitposts those had).

When you invite people over to your house for a gathering (also incurring costs - even if people bring something to cover the catering bit, you still have to clean up afterwards) you wouldn't consider it as an opportunity to profit right? (Or you are and are just hosting an MLM party or have some sort of agenda to push).

In addition to all of the answers here, development costs for protocols like ActivityPub can be partially offset by grants by organizations like W3C that work to build open standards.

I know you probably have seen a lot of answers from others already and my answer would probably be the same as others (for obvious reasons) but I am going to answer anyway because you told me not to lurk. Please note that I am not an expert (or even somebody who knows much about business) so don't expect my answers to even be half correct.

If by profitable you mean "not making a loss" then probably yes as long as if there are enough donations to cover the expense of running the server.

But if by profitable you mean "making enough money to be sustainable long term" then my answer would be most likely not because it's not designed to make money (unlike ahem...certain platform)

Lemmy is a non-profit that receives grant funding through NLnet's NGI0 Discovery Fund. And also - individual giving.

Individual instances can fund themselves how they want. Besides donations - there’s certainly a world where some servers start hosting sponsored content to keep afloat. Given that users have so many alternatives, there’s a limit in how much they could get away with.

There’s also a world in which small government would run and operate instances if this gets popular enough. No reason why somewhere like Estonia can’t do so as a promotion of their booming tech industry.

personally I think governments need to get more invested in hosting various forms of social media. People need platforms where they can openly discuss community issues where their representatives are obligated to respond. And this place needs to be free and open for everyone (i.e. not twitter)

Lemmy is a non-profit that receives grant funding through NLnet’s NGI0 Discovery Fund.

Okay, so I found the NLnet project page you alluded to and I've also checked Github and various pages on join-lemmy.org, but I haven't found anything that actually says how the project is organized from a tax perspective. I don't doubt @dessalines@lemmy.ml et al.'s egalitarian intent, but is it actually a an official non-profit organization (e.g. 501(c)3 or the equivalent in whatever country the project is incorporated in), or have they not yet bothered to do the paperwork to form a business entity separate from themselves as individuals, or what?

On the website: Stichting NLnet is a recognised philantropic non-profit foundation according to the Netherlands Tax Authority (Belastingdienst). Here is a link to NLnet's Articles of Association, which is in Dutch.

To be honest, I'm definitely not interested in this enough to do anymore research than that, but you're welcome to run it through Google Translate and see if you find anything. And report back if you like. I'm not well versed in European (specifically Dutch) non-profit space to have an opinion on this. If it was American, that's a different story.

I do see that the the NLnet Discovery Fund is itself funded by the EU's Horizon Europe program (formally Horizon 2020). Here is some details on that.

The way I'm reading it is that NLnet gave the developers of Lemmy a grant, but unless I'm mistaken, that doesn't usually mean that the developers are working for NLnet. Does NLnet manage the project funds directly (e.g. paying the developers a wage, acting as the recipient for web donations, etc.) or did it just disburse the grant to some other tax entity (e.g. what your "articles of association" link calls a "stichting," I guess?) that actually represents the Lemmy project?

Honestly, I'm only just kind of idly curious myself. I could probably find out simply by messaging the devs and asking, but it's probably not worth bothering them. I suspect that, if they haven't already, they'll create a proper non-profit foundation later.

Grant recipients don't necessarily need to file as foundation. For example, college students receive grants.

It's very possible NLnet manages funds that pay recipients as 1099-equivilent contractors. At which point, all Lemmy has to do is document that their grant money is used to sustain the mission to the Foundation.

Fun to speculate, but again - I don't really care enough about this to dive much deeper, lol.

Grant recipients don’t necessarily need to file as foundation. For example, college students receive grants.

It’s very possible NLnet manages funds that pay recipients as 1099-equivilent contractors. At which point, all Lemmy has to do is document that their grant money is used to sustain the mission to the Foundation.

Right, in other words, they receive it as business income for their sole proprietorship (or general partnership, or incorporated business entity), not as wages as an employee of the entity that awarded the grant. Point is, whatever the entity is, it would be separate from NLnet and therefore not necessarily a non-profit just because NLnet is.

Also, if the Lemmy devs are still acting as an unincorporated sole proprietorship or general partnership (with all the donations and such being treated as personal income and with no separation between business assets and personal assets), then the fact that the project is hockey-sticking right now means it's probably about time to get serious and incorporate, both to protect themselves legally by separating their personal and business finances, and so that they can apply to be an official non-profit entity and make donations tax-deductible.

As other people's said, profit is/should not be the driving force. However you should chip in every now and then towards the instance of your choosing. I have donated to lemmy.world and will do it again.

I see it as normal for the instance owners to have their costs completely covered and some extra on top for them for all the time spent.

I am a proud monthly donor. My couple of bucks I send Ruud and the admin team every month helps make this corner of the internet a reality.

So, that's how it's funded.

If you're able, please consider sending in a donation. You can do so at Open Collective or Patreon.

I didn't know you could support lemmy via patreon. Thanks for the info! I'm going to start donating right now!

Help out a sprout?

Both those links go to Mastodon not Lemmy. Am I right in assuming that your account Is on an instance that hosts both? Probably federating with M before feasting with L next?

The idea is to remove profit motive, and distribute the actual costs to the users or admins.

Same way as any enthusiast could have run their own BBS back in the day. The perk now is they're linked together.

I would be shocked if it stays like that forever everywhere, but since the early days there's generally been some way to eat the cost.

Personally, I like the way the haiku project does it. They have a bar with how much they need on the website and as they get more donations, the bar starts filling up. I think the most important thing is to be transparent about your costs.

I think you might really be asking about sustainability, not profitability (profit is what you have after all the bills are paid). It's generally donation-based. I'm sure different communities will have different ways of soliciting donations.

EDIT: I'm no longer partial to the below. I much more like PrimalAnimist's suggestions.

For larger, expensive instances, I'm partial to determining the cost of running a single user over some period of time (say, 5 years), and posting that little datum on the community info. Then, each user that donates that amount gets a badge reward. Users that pay double the minimum get a different badge, and so on. Cycle the badges every n years. Some users will have fancier badges, displaying a kindness for the poor and badgeless. Cultivate a culture of gratitude for those who support, and you won't have to worry so much about not having enough.

I dislike this idea because it creates "tiers" of users. Communities might not allow comments from anyone without at least the basic donation badge. Donations incentivized with perceived perks are made with selfish intent. The capitalist system has trained us that in order for people to do something, they must be given a sufficient reward.

This is not true. Using rewards as incentives to motivate people will create division among individuals. When rewards are introduced, the focus shifts from intrinsic motivation and personal satisfaction to the external reward itself. This leads to a competitive mindset where individuals start comparing themselves to others solely based on the rewards they receive.

For example, I've seen something as simple as a user tag being used to restrict and divide a community. (r/conservative comes to mind first).

The internet and even the web didn't need profit for many long years before the web went commercial. I've been publishing my own website since 1996 without advertising or asking for donations. I just publish it because I love the topic. Profit is NOT the be-all and end-all of existence.

Don't believe me? How much would you sell your children for?

Plot twist: not everything needs to be profitable.

Ok but it still takes funding. Servers cost money, admins time has a cost and they gotta make a living. So there has to be some self sustaining quality to it otherwise you're relying on peoples generosity to donate and having admins that might have to go days without checking things (and burn IT burnout is bad enough when you're getting paid. Plus if these people do similar for work the last thing you want to do when you get home is fix some server issue.)

Donations are indeed key, at least for the major sites with thousands of users and a lot of pressure on both infrastructure and administration. It is not profit-oriented, but it does need to be sustainable.

It seems, however, quite a few people are happy to make some voluntary contributions to keep the operation up and running. I have not yet heard of a Mastodon server shutting down due to a lack of funding. In the threadiverse, a lot of people have been donating a coffee to the creator of Kbin (who will provide a better means of donating in the coming days), and lemmy.world is receiving hundreds of dollars every month at Patreon and Open Collerctive, to name a couple.

Once you put users in control, many of them are willing to pay for products that they would otherwise never have spent a dime on. Personally I have never paid for any piece of software (other than streaming services), but I try to make a round and donate to open source projects every year. :)

@sab What streaming services do you pay for? I'm all for supporting small indie studios, but Disney and the like can deal with me pirating their content.

@Reddugee @Kir @QuinceDaPence

Excellent question. I wish I had an equally excellent answer.

I reluctantly use Spotify. There's a lot of things I don't like about them, but at least they have an API allowing for some great open source clients (such as the GTK client Spot). Eventually I'll probably resign to listening to online radios (FIP is a clear favourite!) and my Vinyl collection (which is currently in another country).

I had Netflix on and off for a while, but stopped for a number of reasons. I have access to the Netflix of friends, but like everything else it seems to be getting worse every day. Thankfully there are some cinemas in town showing classic movies on a regular basis.

I guess I also pay subscriptions to Overleaf and Dropbox, both of which are necessary for work.

As for companies like Disney, I agree piracy is far more ethical than a subscription.

I'm now blocking everyone talking about reddit. enough is enough.

how informed do you have to be to ask this kind of question?

Alright Mr Outraged, just because you got here a week before others doesn't mean the the new comers cannot ask about Lemmy and his it compares to Reddit. In fact the numbers are expected to rise. So good luck blocking posts and people on daily basis for weeks and months to come.

Aka, don't be a jerk to new comers that have questions. Jeez.

Reddit mentality crying about people talking about Reddit. This anger at people just using the internet was a huge problem there. You could have typed two sentences to help instead of typing two sentences to cry.

AND, this is literally No Stupid Questions. Feel free to let yourself out

Account Age: 13 days

lol.... You're one of us, don't pretend like you aren't.