Mastodon Launches New Revenue Model with Paid Hosting and Support Services
Mastodon, the non-profit organization that maintains the software powering the decentralized alternative to social networks like Threads and X, has a new plan to make money.
In a strategic shift designed to enhance its financial viability, Mastodon announced today that it will be introducing paid hosting, moderation, and support services. This marks a departure from its earlier dependence solely on donations and grants.
The Fediverse: A Decentralized Social Network
The emerging network, known as the fediverse, allows individuals and organizations to set up their own servers that are interconnected via the ActivityPub protocol. This decentralized approach enables users to communicate freely without the centralized control typically seen on major platforms.
ActivityPub supports various software applications, providing the backbone for platforms such as Mastodon, Meta’s Threads, Pixelfed, PeerTube, Misskey, and Lemmy, among others. The protocol has also been integrated into popular content management systems like WordPress, Ghost, and Drupal through specific plugins.
Challenges of Server Management
While the process of establishing an account on a public Mastodon server is accessible to anyone, many organizations prefer to have their own servers for greater control over rules and governance. However, setting up and managing these servers necessitates a degree of technical expertise, comparable to deciding between self-hosting WordPress or using a managed hosting service.
To address these challenges and create a sustainable revenue stream, Mastodon will offer hosting services. Clients can choose to run their own servers under a model where Mastodon’s team handles the server management and, optionally, provides moderation services.
Tailored Support Models for Organizations
Additionally, Mastodon will offer support contracts aimed at assisting organizations with their in-house tech teams responsible for server management. This option is particularly valuable for entities that possess IT capabilities but are less familiar with managing Mastodon’s federated software.
Mastodon emphasizes that the servers it provides primarily cater to brands or institutional accounts, distinguishing them from general-purpose servers that allow open sign-ups.
Flexible Pricing Models and Customization
Though the company has not disclosed specific pricing details, it offers a customizable billing model based on factors like hosting, support, and moderation options. Clients will have the freedom to define their own rules and policies while using the hosting service.
Building Reliable Revenue Streams
In preparation for today’s announcement, Mastodon has already collaborated with various clients, including the European Commission, the German state of Schleswig-Holstein, the city of Blois in France, and AltStore. These partnerships are helping to create a more predictable revenue stream compared to relying solely on Patreon donations.
Importantly, Mastodon aims to diversify its revenue sources rather than replace its existing framework of donations, grants, and merchandise. The organization will continue operating its primary server, mastodon.social, as a welcoming entry point for users interested in exploring the fediverse.
“We are excited to expand our services to organizations that share our vision of a free, open, and decentralized social web,” stated Felix Hlatky, Mastodon’s Chief Financial Officer, in a prepared statement. “These offerings will provide financial stability for our team while ensuring the Fediverse remains a resilient, community-driven ecosystem.”
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