Making Money in Open Source

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16 Replies - 3900 Views - Last Post: 25 August 2010 - 01:24 PM

#16 Mike007  Icon User is offline

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Re: Making Money in Open Source

Posted 24 August 2010 - 10:46 PM

One thing a lot of people forgot to mention is advertising or promotion. A lot of open source products come bundled with other optional products, which companies sometimes pay good money to have included with open source products. Toolbars for Yahoo, Google and others come with some open source software install packages. For example, I did not know it for a long time, but Google pays good money to Mozilla to have it's search be the default firefox web search.

Found this interesting article about the subject of royalty payments google gives Mozilla for the search: http://mybroadband.c...coms/6084.html.

The potential problem with integrating advertising efforts like those found in IM clients and some file sharing clients is that someone can compile an edition of the application with advertising turned off. So the open source nature can play against such a strategy.

Just my 2 cents :).
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#17 foxhound_97  Icon User is offline

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Re: Making Money in Open Source

Posted 25 August 2010 - 01:24 PM

For the most part, making money off open-source software is just about being creative in the way you approach your business model.

Wordpress comes to mind. Wordpress is a great content management system, which is free, but then there's wordpress.com, which sells hosting and services for their own CMS. The package itself is free, but they sell premium services. If the package wasn't free, would Wordpress not be the worlds most popular blogging engine? Probably not.

Consider Wordpress themes, as well. There are literally hundreds if not thousands of people making wordpress themes. Because of the GPL that the themes are licensed under, you are technically free to distribute the theme as you like once you've paid for it. However most people that buy these themes support their creators through subscriptions etc., because its in their best interest for the creators to keep churning out great themes.

I may have simplified the previous examamples, but you guys get the idea.

Proprietary software = "We're selling this, wanna buy it?"
Open source = "What's a clever way to make money off this?"
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