Mastodon Announces Paid Services for Decentralized Social Networks: Expanding Revenue Streams and Offering Support to Brands and Institutions
The decentralized social network platform, powered by the Mastodon software and serving as an alternative to mainstream networks like Threads and X, has unveiled a new monetization strategy.
Instead of relying solely on donations and grants, Mastodon will now offer paid hosting, moderation, and support services for organizations looking to join the open social web, often referred to as the fediverse.
The fediverse operates on ActivityPub protocol, a software that powers numerous applications, including Mastodon, Meta’s Threads, Pixelfed, PeerTube, Misskey, Lemmy, and others. This protocol has been integrated into larger platforms like WordPress, Ghost, and Drupal through plugins.
Individuals and organizations can establish accounts on public Mastodon servers, but some prefer to run their own for greater control over rules and service management. However, server setup and maintenance require technical knowledge, much like managing your own WordPress installation compared to using a hosted version from providers such as WordPress.com, Bluehost, DreamHost, or others.
To cater to this need and potentially generate revenue, Mastodon will launch hosting services, allowing customers to run their servers with Mastodon’s team managing them, with optional moderation services available. Additionally, support contracts will be offered for in-house tech teams focusing on server management and maintenance within organizations that already have their own IT department but are new to running Mastodon’s federated software.
Mastodon notes that the servers they offer typically handle accounts for brands or institutions, rather than general-purpose servers with open sign-ups for everyone.
Pricing details have not been disclosed yet, as Mastodon employs a custom billing model that adjusts based on the selected services such as hosting, support, and moderation. Customers will still be able to define their own rules and policies.
Mastodon has already partnered with clients like the European Commission, the state of Schleswig-Holstein in Germany, the city of Blois in France, and AltStore, a software company creating an alternative app store, to establish a more stable revenue stream beyond Patreon donations.
However, Mastodon emphasizes that the aim is not to replace its current model of donations, grants, and occasional merchandise sales, but rather to diversify its revenue streams. The company will continue to operate its own server, mastodon.social, as a popular entry point for consumers interested in exploring the fediverse.
“We are thrilled to extend our services to organizations that share our vision of a free, open, and decentralized social web,” said 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.”
