Presented by
How to use n8n
If you've been looking for a way to automate AI workflows without paying through the nose for cloud-based platforms, n8n deserves your attention. This open-source automation tool has become a favorite among developers and IT professionals who want complete control over their data and infrastructure. The catch? You'll need somewhere to run it, and that's where VPS hosting comes in.
In this guide, I'll walk you through setting up n8n on a VPS server, from understanding its licensing model to building your first AI workflow. Let's get started.
What's the point of n8n?
n8n is an open-source workflow automation platform that connects apps, APIs, and services through a visual node-based interface. Think of it like Zapier or Make, but with a twist: you can self-host it. Your data never touches third-party servers and you're not locked into per-task pricing that becomes unpredictable as your automation needs grow.
What makes n8n different from no-code tools is its pricing model. While platforms like Zapier charge per task, n8n bills based on complete workflow executions rather than individual steps. A workflow with two steps costs the same as one with twenty. The self-hosted Community Edition is entirely free, giving you access to over 1,900 integrations without execution limits. You can write custom JavaScript, make direct API calls, and build AI-powered automations that would cost a fortune on competing platforms.
How to set up n8n on a VPS server
n8n operates under a Sustainable Use License based on the fair-code model. The Community Edition is free for internal business use and personal projects with unlimited workflows and executions. The only restriction is that you can't host n8n and charge users for access. For most users running their own automations, this is a non-issue.
VPS hosting makes the most sense for n8n because you get dedicated resources, full root access, and the ability to install Docker. Providers like Hostinger offer n8n-optimized VPS plans starting at $5.99/month with 1-click installation, while ScalaHosting provides managed VPS from $25.95/month with their SPanel control panel and SShield security.
Here's how to set up n8n on a Linux VPS:
- Access your VPS via SSH using your server's IP address and root credentials
- Update your system packages by running sudo apt update && sudo apt upgrade -y
- Install Docker if it isn't pre-installed: curl -fsSL https://get.docker.com | sh
- Create a directory for n8n data: mkdir ~/n8n_data
- Run n8n with Docker: docker run -d --name n8n -p 5678:5678 -v ~/n8n_data:/home/node/.n8n n8nio/n8n
- Access n8n in your browser at http://your_server_ip:5678
- Set up SSL with Let's Encrypt and configure a reverse proxy for production use
The basics of using n8n
Before building your first AI workflow, you'll need to understand n8n's core concepts and terminology. Here's a quick glossary:
- Workflow: A complete automation sequence from trigger to final action.
- Node: An individual action or step. n8n offers over 1,900 pre-built nodes for services like Google Sheets, Slack, and OpenAI.
- Trigger: The event that starts your workflow, such as a schedule, webhook, or new email.
- Execution: A single run of your entire workflow from start to finish.
- Credentials: Stored authentication details for connecting to external services.
- Webhook: An HTTP endpoint that external services can call to trigger your workflow.
Creating your first workflow
Now that you’ve installed n8n, it’s time to put it to use automating workflows. There are three main approaches to building AI workflows in n8n, each suited to different skill levels and use cases. Choose one depending on your technical proficiency and use case complexity.
| Row 0 - Cell 0 | Manual builds | n8n templates | AI chatbot |
How it works | Drag and drop nodes onto the canvas, configure each step individually, and connect them to create custom logic flows | Browse the library of 2,700+ pre-built workflows, import one with a click, then customize credentials and parameters | Describe what you want in natural language and n8n's AI assistant generates a workflow structure for you |
Pros | - Complete control over every step - Ideal for complex or unique automations - Supports custom JavaScript | - Fastest way to get started - Community tested configurations - Covers common use cases | - Great for beginners - Helps discover new node combinations - Speeds up prototyping |
Cons | - Steepest learning curve - Requires understanding of APIs and data flow | - May require modification for specific needs - Templates can become outdated | - Workflows need more refinement - AI can confuse complex requirements |
Keep going!
You now have everything you need to run n8n on your own VPS and start building AI-powered automations. The combination of free self-hosting, execution-based billing, and a massive integration library makes n8n one of the most cost-effective automation platforms available.
Here are a few ideas to experiment with:
- Here are a few ideas to experiment with:
- Build a workflow that monitors Gmail for invoices and extracts data to a Google Sheet using AI
- Create an automated social media scheduler that generates posts with OpenAI
- Set up a webhook that routes form submissions to different Slack channels based on content
- Automate lead enrichment by connecting new CRM entries to data lookup APIs
