this post was submitted on 08 Jun 2023
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So realistically, what would a sustainable business model be for something like Reddit?
Something like lemmy or a fediverse platform is going to rely on donations and community support. In the case of mastodon, for example, it’s been shown to work well enough for sustainable operations. For those willing to work on something worthwhile for lower salary, it is potentially a great gig. In a commercial context though, it’s basically a subscription based business model.
If we’re to recover from this ad driven data tracking economy, subscriptions seem like a healthy thing for businesses to adopt.
Reddit may have already signed their deals with the devil. But generally, the point of the fediverse is to escape this corporate manipulation of our basic communications in the internet, and it’s still interesting to ask what profitable but sustainable operations can look like.
I think that federation will help Lemmy a ton--there will be a lot of small, cheap servers rather than a single extremely expensive one!
Possibly. I’m not sure how true it is that the fediverse necessarily leads to more efficient computing needs per user. I’d bet it’s the opposite.
But, as you perhaps allude to, there are other factors. For those who only want niche smaller communities, they can enjoy a more stripped down experience without needing speedy and beefy servers. Similarly, the platforms here are probably slimmer and not bloated with features that are trying to engage and monetise.
The major factor, IMO, is ownership. Admins literally own their servers. And should have a much closer and codependent relationship with the users in their servers, except in the case of large instances which become different beasts. Additionally, users have much more choice and mobility on the fediverse. All of which means admins/moderators and users have more at stake in their relationship. More ownership over their platform/instance. And therefore actually have a reason to donate and contribute and help out.
The interesting thing for me is that the federated system allows for a potentially huge variety of business models, and we'll get to see what works and doesn't. Whereas reddit has to stick with just one