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.
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).