this post was submitted on 17 Oct 2023
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At the end of the day, there are three ways to finance a server.
OP raised the concern that most people won't donate. Does it really matter? I don't think so; what matters is the total amount being donated, not who does it. If it is a concern, perhaps a subscription model could work, too, but the instance would need to show some service beyond what you'd expect from a Lemmy/Mastodon/Kbin/etc. instance.
I'm from the belief that "ethical ads" are a trap. 90% won't be ethical, and the 10% left won't pay you much. That's how the cookie crumbles.
Another concern that I see is moderation, as it's part of what makes an instance viable or not. The old Reddit model (let users moderate users) is surprisingly good in this aspect, as it allows the server owners to only address server-wide issues, but IMO it needs to be improved on (for example, letting admins and mods recruit users for specific tasks - e.g. I might trust someone to remove content, but perhaps not to ban users).
I agree with everything you’ve said. I think option 3 is the best and most reasonable option. A Freemium model makes the most sense.