Open Source Software Monetizing schemes
Here's two methods of monetizing open source projects that I've kicked around in my head for a while that I haven't seen anyone do yet.
Ransom Based
Distribute a binary. Accept donations. When a certain threshold of donations is reached, release the software as open source.
This leaves a bad taste in my mouth because it doesn't feel right, but it might be a viable solution for certain types of development. I remember there used to be a couple websites that would let companies describe a project they want and would pay for someone to make an open source version. It's essentially the reverse of that since it lets the developer initiate the project.
Donation as a sale
Many projects out there accept donations. Corporations have a lot of money, but in the corporate world it's often really hard to get a donation approved. But buying stuff is a lot easier! What if open source projects sold a "gold" version of their software that was identical (in content and license) to the open source version. I'd imagine it would be a lot easier for an engineer working in a corporate environment to make a donation by pushing through a PO to purchase software than to figure out how to go through the corporate machine to send out a donation. In fact, I'm sure many organizations would welcome the ease of supporting open source projects that they use through a model like this.
Just a couple random thoughts to think about...
Ransom Based
Distribute a binary. Accept donations. When a certain threshold of donations is reached, release the software as open source.
This leaves a bad taste in my mouth because it doesn't feel right, but it might be a viable solution for certain types of development. I remember there used to be a couple websites that would let companies describe a project they want and would pay for someone to make an open source version. It's essentially the reverse of that since it lets the developer initiate the project.
Donation as a sale
Many projects out there accept donations. Corporations have a lot of money, but in the corporate world it's often really hard to get a donation approved. But buying stuff is a lot easier! What if open source projects sold a "gold" version of their software that was identical (in content and license) to the open source version. I'd imagine it would be a lot easier for an engineer working in a corporate environment to make a donation by pushing through a PO to purchase software than to figure out how to go through the corporate machine to send out a donation. In fact, I'm sure many organizations would welcome the ease of supporting open source projects that they use through a model like this.
Just a couple random thoughts to think about...
posted by Marc at
9:37 AM
3 Comments:
I'd be interested to see/hear how existing donation based software/developers have done, according to the books. My guess would be that, it might buy them a beer, or new keyboard now and again, but won't put food on the table.
By
Anonymous, At
11/29/2007 12:44 PM
I'd be interested in hearing that as well, but like you said I doubt many people quit their day jobs for an open source project they started.
But maybe a better monetization method would buy 2 beers instead of one :)
By
Marc, At
11/29/2007 1:55 PM
If interested in the Ransom model have a look at the old but still good Brian's editorial at http://freshmeat.net/articles/view/636
As far as I know it never happened to be implemented, though.
About donations, the model you're describing is often referred as double-licensing or twin-licensing. Customers buy it because of maintenance and support, or because the commercial version allow them to create a larger work that is proprietary (MySql). There is also another option, that is to buy open source projects' enhancements from "mediation" open source firms, like OpenLogic.
You can also read a taxonomy open source business model at my blog:
http://robertogaloppini.net/2007/04/06/open-source-business-models-a-taxonomy-of-open-source-firms%E2%80%99-business-models/
By
Anonymous, At
12/01/2007 1:22 PM
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