It has a lot of benefits, and a few costs.
Benefits:
* You control the moderation, so you can set your own rules and process for that.
* If the server gets overloaded and bogged down, you have the ability to fix that.
* You control branding (to a degree), which software / fork (and therefore what features you have).
* With some software or forks, you have local-only posting (Misskey, Calckey (Misskey), Hometown (Mastodon), Glitch-Social (Mastodon), at least.
@GregCirillo @futurebird
Costs -- pretty much mirrors of the above:
* You have to do the moderation -- or pay someone to.
* Also sys-admining -- or pay someone to.
* Customization, of course, requires tinkering.
* Again - details to manage: picking and installing software, and/or finding someone to do that for you.
There ARE services that do hosting and system-level administration for Fediverse servers.