Skip Navigation

How are lemmy and other fediverse platforms profitable?

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.

140 comments
  • It takes money to run, but it doesn't need money to "be".

    Imagine a group of people rent a building to hang out in; of you're a regular you chip in some bucks. Lots of people, a few bucks each, roof over your head.

    Get out of that "free" mindset. It was a trap all along. Some of us old pharts have known this, some of us (not me) have been coding stuff like Lemmy and other open software all along.

    Right away i knew Lemmy.world was viable; I'm gladly paying 5 bucks/mo! No ads! No corporate extraction of personal data!

    Hell, pay TWO bucks a month. Seriously wtf 2 bucks you could lose and not notice.

    • Yup. You can be profitable without expecting to get rich. The insane corporate expectations of "20% growth every year forever" directly leads to the enshitification of everything it touches, especially social media.

  • 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.

  • 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.

  • 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 ;-)."

  • 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.

    • I think they are asking "how are things paid for" not necessarily "are they making tons of excese profit"

      • Profit is the money leftover after everything has been paid for, though. All profit is, by definition, excess.

        You're probably right and the OP is just confusing terms, but I think it's an important distinction to make.

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

  • 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.

  • 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.

  • 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 massive 'miniature' train set hidden in a nerds garage.

  • 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.

  • 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.

  • 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.

  • 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).

140 comments