Let’s make a quick case study?

Take a look at Mastodon’s Patreon and their OpenCollective page. The largest project in the Fediverse gets 16500€/month from Patreon + $10k/year on OC, and that money is meant to support an instance with ~ 280 thousand active users (mastodon.social), another with 9.600 active users (mastodon.online) + the salary of ~5 developers. And we are not even counting the tens of moderators who are doing a lot of stressful work and have to deal with all sorts of issues that arise from being the largest instance out there.

An instance like mastodon.social should be pulling at least $1.5M/year in donations to make this work for the admins and moderators alone. Double that if we also used to fund the work of the developers. Which means that they would need an average donation of $4-$8 per user/year. Now, going by Jerry’s number where he says around 4% of his users donate, this would mean that each donor would have to contribute $100-$200 every year.

And this is for the flagship instance, which has all their “please donate” narrative (deservedly) on their favor. Imagine how much harder would it be for other instances. Do you really think that we would be getting 4% of every instance contributing $100/year, or 8% contributing $50/year, or 20% contributing $20/year?

Now, let’s compare with a different funding strategy, where we have independent service providers providing a service. Each one of them is working with different levels of investment, ROI expectations, etc. None of these instances would be getting hundreds of thousands of users (which makes operational costs per user higher), but at least their growth would only come if they have enough people willing to pay the asking price, and none of these users would be expected to pay $100-$200/year.

For example: my magical number with Communick is to get 10 thousand customers, each paying paying $29/year. That’s $290k. Minus a reasonable salary for me ($180k/year), that’s $110k. Minus my operational costs (let’s say I can make things run with $25k/year) that’s $85k. Minus my 20% pledge to the underlying Fediverse projects on the profits (20% of $85k is $17k). The remaining $68k would be used to reinvest in the business, hire people to help, etc.

Can you realistically make the case where someone with ~10k users could be getting $15k/month in donations? Not as an one-off kickstarter (like the Pixelfed devs did), but consistently enough that people can actually make long-term plans around this revenue, treat it like an actual job?

Do you think that all that is missing for the “open registration instances” (the .world servers, the infosec servers, fosstodon, hachyderm.io…) is “transparency”? All these people are already doing very good work and they are transparent about their costs. Do you think if the admins start also including other costs on the list, that the donations will keep coming forever?