So how long until the Fediverse is monetized?
So how long until the Fediverse is monetized?
I'm fairly new and don't 100% understand it yet, but instances are run on servers that require money. Are we heading towards seeing ads or subscriptions to raise funds instead of relying on donations to cover overhead?
Especially with the influx of new users. Hardware upgrades are needed.
The fediverse is not a single database or server. It's a protocol and standard that's distributed by design. The fediverse as a whole cannot be centrally monetized, just like email can't be monetized. A single provider could potentially choose to try to monetize either by requiring a subscription or showing ads, exactly like email providers do, but if you ever feel like they've stopped providing a good service you can just switch to another instance just like you can switch to another email provider.
Unlike a centralized service like Reddit, you're not locked into a monopoly. Switching instances does not lock you out of the system as a whole, just like you can still receive email if you switch to another provider. With Reddit you can only access the platform through Reddit because it's a closed source centralized monopoly.
One thing the fediverse seems to lack as far as I can tell is a way to link accounts, like how you can set up forwarding with email, which helps you switch providers. But the protocol and standard is still being developed so maybe that's something that can happen in the future
Open-source projects have always been sustainable by donations. Just look at Wikipedia; it's been around for 22 years. Linux has been around for even longer.
If lemmy.world ever sold out, I'd probably just move to reddthat.com. Problem solved.
I’m going to tell you a secret…. Yes.
All those things could happen. Some people could run a site that has ads. Some people could run a site that charges a membership. Some sites could have a Patreon membership. Some sites could do subscriptions….
And some sites could be completely free.
The funny thing is, because of the federation, no one will be harmed. Let’s say I startup a site and all I do is pass through the cost of the site to each user. No profit, just what it costs to maintain the server is shared among the members.
Is that unreasonable?
The concept of the Fediverse is horizontal rather than vertical growth - i.e. More smaller instances rather than increasing the capacity of the larger ones. We're also seeing that Lemmy currently only scales to a certain degree. Right now, most instances are either covered by their admin because they're so small that the cost is manageable or instances are setting up donations.
It's conceivable that a business would set up an instance and charge for it - but I think it unlikely. A year town the road, though, who knows?
I could see someone trying to sell ads on their instance. But ya I can't imagine many people would join unless they had some other features that are better than other instances.
The fediverse is the coolest thing that could happened, freedom is what all people should seek for, creating their own spaces and not supporting corporations that only want to make money out of people's lives, data, attention, mental health, etc ...
It's better to support the instance you are in with donations for sure.
Wikipedia is probably the most important thing on the internet fight now. It also needs some amount of servers, many crawlers scan it daily, I assume its a shitton of users and logins and API hits and what not. And still it survives on donations alone.
Eventually lemmy is not a streaming services with videos and and a lot of bandwidth. Its just text and people connecting. So I assume you dont need massive servers and shit.
I'm not sure this is necessarily a bad thing. Imagine inge a stable commercial service with high quality moderation (hopefully paid for by the operators) but with an option to follow other instances and transfer your data to another instance. That could be pretty good for drawing in people who just want something that works and refuse to leave reddit.
Because there will always be rebels running small to medium size instances based off of donations. It was the very first thing to happen at the birth of the internet, and will continue to happen today. Will there be a few major instances that eat up the majority of the fedi? Yeah, probably, but the design of the fedi is that the experience of decentralized social media will stay the same regardless of what's going on with instances of the network.
How many hobbiests running miniature train sets in their garage have monetized those train sets? How many backyard gardeners sell their crops.
In most cases people who choose to develop and administrate an instance of their own are largely just hobbiests of another type. Sure it costs them some money. Many hobbies cost money, it doesn't stop people from building things or growing things for fun.
Besides all the discussion of nonprofits and donations, fedi server hosts have way less overhead. They're not generally trying to profit, so they only need to break even (or run a deficit small enough to deal with out of pocket). A corporation is trying to give 6 or 7 digit salaries to CEOs and/or shareholders. So they need to extract more than the cost of hosting.
Surprised no one else mentioned this... the answer is negative many months (or years?), most are Mastodon instances and probably not many people are familiar with most of those instances tho.
There was a fairly serious controversy months back when mastodon.cloud was purchased (if I remember correctly) by the same company that owns pawoo.net and another large Japanese Mastodon instance, the company is for-profit. Several right-wing shithole instances obviously have ads and are for-profit. Also there are a few instances owned/operated by for-profit companies, Medium immediately comes to the top of my mind.
Problem is a fairly significant portion of Mastodon admins I know were so staunchly against anything touching for-profit companies within a 12-ft stick that they immediately defederated from all of the said for-profit company affiliated instances...
To answer the second question... I don't know. Again, the larger Mastodon instances (over 10,000 users each) I'm aware of seem to do just fine on user donations now, but the concept of profit comes every now and then. Paid moderators/admins was also something to keep in mind for this topic.
The big difference with Lemmy is that it's not really a service, it's a open protocol and standard, like email, or http. The service itself is provided by distributed instances that adhere to the protocol. Like those protocols, no one company has been able to get a monopoly on it. Some have taken over a lot of it, like Google with Gmail, or cloudflare, but if you don't want to work with them there are a ton of other options you can go with, and you will not be locked out of the system if you do.
Reddit was a centralized closed source system so if you don't have a Reddit account then you are locked out of the system completely.
Lemmy is decentralized so no one instance has or can gain a monopoly. If you want to break ties with one instance you can just switch to another one and still participate with it and the rest of the fediverse.
Not only does that give you choice in a worst case scenario, it also keeps all the instances on their toes because they don't have dictatorial control over their users.
Spez's fatal miscalculation was that he thought he had user lock in, but unlike other social networks where it's your only option to keep in contact with your real life friends, or it's the only platform your favorite creator posts on, they had neither. Almost all accounts were not connected to your real life and posts were mostly links to other platforms. Very few creators had Reddit as their sole posting platform. The interactions were ephemeral and superficial. Dropping Reddit was the easiest service I ever had to drop.
The Fediverse as a whole cannot be monetised, censored, or taken over by hostile entities.
Individual instances can, but they are only part of the whole and not the whole thing, so instances of Elon Musk or Steve Huffman simply cannot happen on the same scale.
As a fun fact of the day, Wikipedia subsists entirely on charity, so it's very possible to run things using this model if you provide enough value and transparency for people.
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For me, never. I will always move to a server that is run by donations.
The Fediverse SHOULD allow monetization and they don't yet. As per Mark Bayliss:
The problem here is that despite these large and escalating costs, a significant part of the fediverse is intrinsically hostile to anything other than charity or goodwill as a basis for running a server, due to hostility to capitalism as an abstract or just on a general point of principle regarding how web services should be funded. Any instance that runs advertisements to its users is likely to be blocked by any others purely on those grounds. Some instances have tried to introduce subscription fees for joining and have been blocked as a result. Ownership by a corporate entity or accepting funding from one is also likely to wind up with a block.
I'm not saying to commercialize the entirety of the Fediverse but if you want it to actually compete with Twitter and Reddit and Tumblr then you need to open it up further.
Think of the Fediverse much more like Wikipedia than anything else. It is run in donations and volunteers. It is not for profit and for the benefit of all people.
It's already monetised. Just click on the links under Donations in the main sidebar or straight to the OpenCollective page for a glimpse. We pay for it with our money. That's how we know we're not the product.
I doubt we'll see ads in the form we know them from places like Twitter and Reddit. We may start seeing instances being sponsored by (or even operated by) businesses, and people can federate with them or not as they choose.
I also think paid subs will be a growth area and honestly this is the model I'd be most comfortable with, although I acknowledge the risk of excluding people who don't have disposable money to spend on such things.
It already is. As soon as something like this is internet facing, you get search companies and now AI companies mining data to use for commercial applications.
In terms of the sites themselves though, it'll vary and depend. As it grows in populatity, there will be monetised content in plain sight (think all those secretly sponsored and advertising posts on reddits used to try and push products subtly - the bigger the user base, the more attractive it is to target users with hidden advertising), and then there will be what the servers do themselves. Some may exist on donations, but others may chose to try to place adverts, others may go for subscriptions.
Ultimately there does need to be money coming in from somewhere to keep the services going. There are many free success stories: Wikipedia continues to be free, without adverts, thanks to donations from users and sponsor organisations. Mozilla continues to produce a free open source browser through a mix of donations, sponsor organisations, and paid search deals. Linux is a huge free open system, with a mix of donations, sponsor organisations and commercialisation of the ecosystem.
There isn't really a reason why social media can't also be "free" for consumers, but we don't know yet how that will play out. On traditional social media, the user is the product - our data is mined, we're marketed at, we're advertised at, our data is sold on. The fediverse breaks alot of these methods - or more accurately it opens up these methods to everyone as anyone can access much of the data, removing the value companies have in monopolising and gate keeping the data. It's a double edged sword, but be in no doubt even in the fediverse companies can and will monetise whatever data they can get their hands on.
The Fediverse will never be monetized. It's open by nature, instances are maintained by donations and out of the administrator's pocket. Why? Because they have a passion for it.
Even if someone chooses to monetize one instance, people will move to another that isn't monetized. It's free and open by design, and will always be that way.
As soon as Lemmy instances are unsustainable out of pure interest for the concept of the Fediverse. I doubt there will be subscriptions, first it'll be donations, and then some instances may have ads. It's an inevitable that both will happen (either on the same instance, or some instances opting for donations to stay up, and others opting for ads to stay up). No one can run the servers necessary for this platform out of pure charity; the bill for the Fediverse is going to be due someday, and it has to be paid.
Realistically every instance can monetize in whatever way they see fit but I highly doubt this'll be a thing. Mastodon is way bigger and more expensive than Lemmy and it runs just fine through donations. No reason why the same won't work here.
Lemmy itself is also likely to follow in Mastodon's path by getting money from sponsorships and fundraisers. See https://www.investopedia.com/how-mastodon-makes-money-7482865
There will probably eventually be some commercial Lemmy sites. I honestly think it would be awesome if large game studios, and software companies, and anyone else who has need for a forum, made their own federated Lemmy instances as their official support forums.