Generally it comes down to have distanced the players are and how large the world is.
People have been known to pre-generate worlds that have a limited about of chunks to help with this.
Plugins don't use up more memory, rather more CPU cycles. So you need to consider that when building your server although it may have a lot of memory, that can ultimately only help so much.
You could run a personal server with up to 5 players on a 2-3Gb plan with mods.
- RAM, Minecraft, CPU
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