How to Monetize Remote MCP Servers (With Demos!)

Hey everybody! There are now two platforms that just made it incredibly easy to provide a paid MCP server to customers without the need for them to install a thing. Smithery and Cloudflare have both solved the hosting problem that kept MCP servers trapped on localhost.

The Game-Changing Announcement

Just a couple of weeks ago, there was a flood of announcements for support for remote MCP servers from:

• Cloud Code
• Gemini CLI
• OpenAI

Support for remote MCP in LLM clients is huge because it's eliminated the biggest roadblock to a profitable business built on MCP: getting users to download, install, and run your server.

New Revenue Models Unlocked

The fact that you don't have to do local installation anymore opens the door to new revenue models for MCP that didn't really make sense before:

• Direct services to customers during their day-to-day interactions with LLM clients
• Single URL access - users can connect the same way they visit your service from a browser
• Subscription-based MCP services
• Usage-based pricing models
• Enterprise integrations
• Custom solutions
• Marketplace distribution and discovery

Platform #1: Smithery.ai

What Makes Smithery Special

Smithery is more than just a deployment platform - it's also a directory of MCP services with over 7,000 tools available.

Featured integrations include:

• Google Maps
• Notion
• HubSpot
• Various search tools

The User Experience

Discovery and Integration:

• Easy browsing of available servers
• Clear client compatibility information
• Simple integration with any existing LLM client
• Built-in playground for testing

Example workflow:

1. Browse the directory
2. Select a service (like search)
3. Test in the built-in playground
4. Get a single URL for integration

Authentication and Monetization

API Key Management:

• Smithery uses a profile system for access control
• Users enter API keys through connection settings
• Perfect for services like Notion that require private access
• One URL wraps multiple API keys if needed

Monetization approach:

• Gate access via API keys
• Protect private resources (like personal Notion data)
• All authentication handled through Smithery's profile system

Deployment Process

It's remarkably simple:

1. Run their CLI command locally
2. Test using Smithery playground
3. Connect to GitHub
4. Smithery handles Docker building and deployment
5. Auto-redeploy on every push to main

Example setup:

# Install and run their example
npm create smithery-mcp-server@latest

Technical Architecture

Under the hood:

• Uses Anthropic's TypeScript SDK
• Wrapped in Smithery CLI tool
• Sets up Ingrok for local proxy
• Hosted playground integration

Advantages of Smithery

✅ Very simple deployment ✅ Built-in user management ✅ No local setup required ✅ One URL contains server + configuration ✅ Built-in marketplace for discovery ✅ Fast deployments ✅ Free to use

Limitations of Smithery

❌ Public repos only (code must be open source) ❌ Limited to API key gating ❌ smith3.ai domain required (no white labeling) ❌ No access to server logs (coming soon)

Platform #2: Cloudflare

Why Cloudflare is Different

Cloudflare isn't just an MCP platform - it's a full hosting platform like AWS or GCP. This gives you access to:

• Databases
• Queuing systems
• Key-value stores
• Additional functions and workers
• DNS management
• White label URLs with your own domain

Technical Implementation

GitHub Repository: Cloudflare provides extensive examples in their AI GitHub repo with full projects for:

• OAuth authentication (GitHub, Google, etc.)
• Different MCP server patterns
• Authentication frameworks integration

Architecture:

• Uses Wrangler for local development
• MCP servers are Cloudflare workers
• Full access to Cloudflare's ecosystem

Authentication Deep Dive

OAuth Implementation:

• Full OAuth flow with GitHub (example shown)
• User authentication through GitHub servers
• Dynamic tool surfacing based on user permissions
• Private server hosting (your code stays private)

Real gating capabilities:

// Example: Gate access based on authenticated user
const allowedUsers = ['your-username'];
if (allowedUsers.includes(user.login)) {
  // Surface premium tools
}

Development Experience

Local testing:

• Use MCP Inspector for direct tool testing
• No AI intermediary for debugging
• Full control over the testing environment

Deployment:

• Deploy as standard Cloudflare worker
• Access to all Cloudflare bindings
• Enterprise-grade security and SLAs

Advantages of Cloudflare

✅ Private code hosting ✅ OAuth authentication support ✅ White label URLs with custom domains ✅ Enterprise-grade security and SLAs ✅ Competitive pricing (pay per usage) ✅ Full platform access (databases, AI tools, etc.) ✅ Real gating capabilities ✅ Server logs and monitoring

Limitations of Cloudflare

❌ More complex setup than Smithery ❌ No built-in marketplace ❌ Requires more technical knowledge ❌ Not free (though very cost-effective)

Monetization Strategies Comparison

Smithery Monetization

Best for:

• Quick iteration and testing
• Broad market appeal
• Simple API-based services
• Public/open-source tools

Revenue models:

• API key gating
• Usage-based pricing through your APIs
• Lambda function gating for premium features

Cloudflare Monetization

Best for:

• Enterprise customers
• Existing SaaS applications expanding to MCP
• Private/proprietary tools
• Complex authentication requirements

Revenue models:

• Direct tool monetization (private server)
• Enterprise licensing deals
• OAuth-based subscription services
• White-label solutions for clients

Platform Comparison Summary

Key Takeaways

1. Choose Smithery if:

   • You want to test ideas quickly
   • You're okay with public code
   • You need marketplace discovery
   • You want zero setup complexity

2. Choose Cloudflare if:

   • You need private code hosting
   • You want enterprise features
   • You need custom authentication
   • You want white-label solutions

3. Both platforms solve the fundamental problem:

   • No more local installation barriers
   • Remote MCP servers are now viable businesses
   • Multiple monetization paths available

The Future of MCP Monetization

With these platforms eliminating the installation friction, we're seeing the emergence of:

• MCP-as-a-Service business models
• Enterprise MCP solutions
• White-label MCP offerings
• API-first MCP services

The door is now wide open to launch profitable MCP servers that can be accessed by any LLM client with a single URL.

Resources

• Smithery.ai
• Cloudflare MCP Blog Post
• Cloudflare AI Demos

That's it for this video! I'd love to know in the comments how you're using MCP, how you're monetizing it, or if I missed anything. Subscribe if you'd like to see more content like this. Looking forward to your feedback!