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Ask HN: How to Monetize Open-Source Software?

90 pointsby paydevsabout 3 years ago
We&#x27;ve collected 34 approaches to monetize open-source software in an open github repository (https:&#x2F;&#x2F;github.com&#x2F;PayDevs&#x2F;awesome-oss-monetization).<p>What have we missed?

19 comments

pimterryabout 3 years ago
&gt; Monetization via Paid Premium Version &#x2F; Open Core<p>This point is interesting, because it assumes the only way to do premium is with a closed-source version, losing the open-source benefits.<p>Personally I&#x27;ve had good success (i.e. comfortably enough income as a solo bootstrapped project that I can work on open source full time) doing a freemium approach that&#x27;s 100% open-source for <a href="http:&#x2F;&#x2F;httptoolkit.tech" rel="nofollow">http:&#x2F;&#x2F;httptoolkit.tech</a><p>Yes, anybody can fork the project and remove the payment checks (here: <a href="https:&#x2F;&#x2F;github.com&#x2F;httptoolkit&#x2F;httptoolkit-ui&#x2F;blob&#x2F;5cf0b10c6f8bb902ee5261414e8a21a45904690d&#x2F;src&#x2F;model&#x2F;account&#x2F;account-store.ts#L108" rel="nofollow">https:&#x2F;&#x2F;github.com&#x2F;httptoolkit&#x2F;httptoolkit-ui&#x2F;blob&#x2F;5cf0b10c6...</a>) but it&#x27;s a non-trivial hassle to fork everything and hook it all up, and means ongoing maintenance work to manage a fork forever, so at the price it&#x27;s not really worth any serious professional&#x27;s time (and I give out free licenses for everybody who contributes to the code anyway).<p>Works well, lets you stay 100% open source, which is good for everybody and encourages contributions, and you can still make enough money to fund development (never going to make anybody a billionaire, but that&#x27;s not the point).
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oxffabout 3 years ago
Well, you don&#x27;t directly monetize open source software.<p>What you do is you become a &quot;VC&quot; and get a bunch of guys to build on top of &quot;open source&quot; with a X-as-a-Service based subscription model, and then you contribute pennies back (and usually: just posting issues to the open source stuff you use to get slaves to slave away for free).
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mhoadabout 3 years ago
Not sure this fits neatly into a list format but this is essential reading on the topic from Golang’s head of cryptography who as of yesterday quit to go and focus on this particular thing<p><a href="https:&#x2F;&#x2F;words.filippo.io&#x2F;professional-maintainers&#x2F;" rel="nofollow">https:&#x2F;&#x2F;words.filippo.io&#x2F;professional-maintainers&#x2F;</a><p><a href="https:&#x2F;&#x2F;words.filippo.io&#x2F;pay-maintainers&#x2F;" rel="nofollow">https:&#x2F;&#x2F;words.filippo.io&#x2F;pay-maintainers&#x2F;</a>
shafyyabout 3 years ago
For my two open-source projects, Fugu [0] (privacy-first product analytics) and Mapzy [1] (store finder), everyone can self-host for free without any feature restrictions (AGPLv3 license). We then offer a hosted version that people can use who don&#x27;t care about self-hosting at a price that makes self-hosting not worth it for most users. Of course, there are other reasons to self-host outside of cost.<p>0: <a href="https:&#x2F;&#x2F;github.com&#x2F;shafy&#x2F;fugu" rel="nofollow">https:&#x2F;&#x2F;github.com&#x2F;shafy&#x2F;fugu</a><p>1: <a href="https:&#x2F;&#x2F;github.com&#x2F;mapzy&#x2F;mapzy" rel="nofollow">https:&#x2F;&#x2F;github.com&#x2F;mapzy&#x2F;mapzy</a>
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teddyhabout 3 years ago
Asking how you could “Monetize Open-Source Software” is essentially asking how you could monetize a useful but mainly social activity which produces no physical product. I’m not sure it’s possible, and if you find something, it’s not necessarily related to the social activity, or it may actually be harmful to it.<p>This is because free software is not a business model. Free software is an ethical stance, around which any number of business models may conceivably be constructed.
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robertxyabout 3 years ago
It is hard. If you get paid directly, it will be a low salary and you support lavish lifestyles of foundation directors and those who have made a career out of running consultancy sweat shops with 10% open source work for bait-and-switch hiring.<p>If you work at a huge corporation that has vanity projects, expect churn, politics, infighting, useless initiatives for promotion and mediocre code quality.
light_coneabout 3 years ago
If I did start an open source project, I think I would do a very simple licensing that I have never encountered, like: &quot;Dual licensing: Paid software now, and GPL starting 2032&quot;. I guess in the oss monetization list it is covered by &quot;paid early access: Delayed open-sourcing&quot;.<p>The software source code is released day one, but it won&#x27;t be a FOSS license until YEAR+N. The license switch will be automatic after the deadline.<p>That way I think I can have the best of both worlds: making sure development is paid (which is often necessary to sustain any large project) and any additional valuable development being be paid for, but also giving your customers the guarantee that they&#x27;ll have an exit against vendor lock-in, and releasing in the long term to the FOSS community.<p>Basically I sell software normally, but commit to a future FOSS license at the same time. It&#x27;s not unlike patents actually, at least what they should be.
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pabs3about 3 years ago
Another list of ways to get paid in open source:<p><a href="https:&#x2F;&#x2F;github.com&#x2F;fossjobs&#x2F;fossjobs&#x2F;wiki&#x2F;resources" rel="nofollow">https:&#x2F;&#x2F;github.com&#x2F;fossjobs&#x2F;fossjobs&#x2F;wiki&#x2F;resources</a>
ameliusabout 3 years ago
Use a special license that makes large corporations like Amazon and Google pay, while small companies and individuals use your work for free. I think this is fair because big companies won&#x27;t mind paying a relatively small fee; and they benefited most from the advancement of society, so it is good if they fund future development. You can set a limit on revenue, number of employees, number of users, etc.
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evvabout 3 years ago
So glad you already cover my favorite ideas for monetization! I&#x27;m considering how to monetize my own startup- currently the whole codebase is permissively licensed.<p>I plan to sell a hosted service, but hopefully I will be in a position where I actually WANT AWS to yoink the code and run a competitive service, so it can feed into better business models.<p>Open Core is distasteful in my opinion because it limits the growth of the open project. (no no I won&#x27;t accept that relevant Pull Request, because I want to sell this feature as proprietary)<p>GPL&#x2F;copyleft is not right for me either, in fact I want to HELP people fork for their own companies and profits.<p>So, once Amazon finally launches their competitor service, I can still:<p><pre><code> - compete with AWS on product and User Experience - sell early access&#x2F;license to the open source code - sell courseware subscriptions+packages - sell first-party support - crowdfund feature development - sell consulting services</code></pre>
paskozdilarabout 3 years ago
The <i>Inkscape&#x27;s &quot;funded development&quot; system</i> link leads to a Page Not Found page.<p>Also <i>Bounties Network</i> link is <a href="https:&#x2F;&#x2F;bounties.network&#x2F;" rel="nofollow">https:&#x2F;&#x2F;bounties.network&#x2F;</a>, without the www. With the www it doesn&#x27;t work on my browser.
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d4rkp4tternabout 3 years ago
Maybe I missed them but it would be nice to see actual examples of each monetization strategy.
toughabout 3 years ago
Working at an open core company with a little over a year of existence.<p>I think the open core model works, and is great marketing strategy.<p>Customers at the end of the day are willing to pay for polished finished products, but giving them an exit path-way should you fail and burn all your VC money, gives some ease vs going for a fully closed-source commercial product, even if some parts of the product aren&#x27;t available (or only under enterprise edition)<p>YMMV, but I think it&#x27;s a good think for open source to have found an hybrid model between free vs paid software dichotomy
atonseabout 3 years ago
Look at the dude who made sidekiq. Mike Perham. He’s written some stuff on this.<p>He’s been tremendously successful with open core + paid pro features.
dimitarabout 3 years ago
This is quite nice! Shouldn&#x27;t it be show HN?
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nprateemabout 3 years ago
I&#x27;ve got an idea I think you&#x27;ve missed. It&#x27;s potentially a game changer for OSS developers and the industry. The question is whether there&#x27;s any demand.<p>OSS developers: do you want to get paid for the work you&#x27;ve done (i.e. with no requirement to fix bugs or add new features)?
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adrianthedevabout 3 years ago
Following this.<p>We&#x27;re in this bucket as well with our product <a href="https:&#x2F;&#x2F;github.com&#x2F;avo-hq&#x2F;avo" rel="nofollow">https:&#x2F;&#x2F;github.com&#x2F;avo-hq&#x2F;avo</a>
smashahabout 3 years ago
Love this!<p>Thankfully I&#x27;ve managed to get sustainable growth as a solo open source maintainer by offering licenses for advanced features only businesses would need.
beckman466about 3 years ago
excuse the long quote, i&#x27;m hoping to engage you in some of its critiques.<p><i>&quot;The failure of the open-source movement is ultimately a failure of imagination.<p>Let’s back up a bit. When I talk about the “failure” of the open-source movement, I don’t simply mean that systemic underfunding of crucial open-source projects has led to incidents like the Heartbleed saga, whereby a vulnerability in an important software library called OpenSSL undermined the integrity of a large part of the internet. [...] Open source’s biggest failure is philosophical.<p>Free as in Freedom<p>For me, the best parts of the open-source movement were always the remnants of the “free software movement” from which it evolved. During the early days of the movement in the 1980s, best captured by Richard Stallman’s book Free Software, Free Society, there were no corporate conferences featuring branded lanyards and sponsored lunches. Instead, it was all about challenging the property rights that had granted software companies so much power in the first place. Stallman himself was possibly the movement’s best-known evangelist, traveling around the world to preach about software freedom and the evils of applying patent law to code.<p>Stallman framed the argument for free software in moral terms, positioning it as not only technically but ethically superior to proprietary software, which he saw as a “social problem.” And he practiced what he preached: in his personal life, Stallman went to great lengths to avoid using proprietary software, even to the point of not owning a cell phone.<p>But it wasn’t until the free software movement shed its rebellious roots and rebranded as the more business-friendly “open-source movement” that it really took off. One of the most crucial figures in this effort was Tim O’Reilly, founder and CEO of O’Reilly Media, who built his business empire by identifying the pieces of the free software movement that could be commodified. Suddenly, corporations that had previously considered open source to be dangerously redolent of “communism” were starting to see its value, both as a way of building software and as a recruitment tactic. From there, an entire ecosystem of virtue-signaling opportunities sprang up around the marriage of convenience between the corporate world and open source: conference and hackathon sponsorships, “summers of code,” libraries released under open licenses but funded by for-profit corporations.<p>If that counts as a victory, however, it was a pyrrhic one. In the process of gaining mainstream popularity, the social movement of “free software”—which rejected the very idea of treating software as intellectual property—morphed into the more palatable notion of “open source” as a development methodology, in which free and proprietary software could happily co-exist. The corporations that latched onto the movement discovered a useful technique for developing software, but jettisoned the critique of property rights that formed its ideological foundation.&quot;</i><p><a href="https:&#x2F;&#x2F;logicmag.io&#x2F;failure&#x2F;freedom-isnt-free&#x2F;" rel="nofollow">https:&#x2F;&#x2F;logicmag.io&#x2F;failure&#x2F;freedom-isnt-free&#x2F;</a>