26
02/10
14:08
Why I Think Writing Open Source will make me Rich
Things have changed since the shareware era of the 90’s today you don’t normally see bundled shareware CD’s. You don’t need Microsoft Office to write documents or use spreadsheets. You download Open Office because it’s free and open source.
Ever since I read Cathedral and the Bazaar and Homesteading the Noosphere it always confuses me why is it better to give away your source code to everyone? Why should I throw away my hard work?
Well let’s have a few examples,
Linux which has no single dictating entity, meaning unlike Windows which has MS and OSX which has Apple. Linux alongside Apache web server (also open source) has continuously dominated as the being the backbone of the internet.
PHP a language created by Rasmus Lerdorf was preferred to use by Facebook and Wikipedia instead of ASP/ASP.NET by Microsoft or J2EE by Sun/Oracle?
Mysql, now bought by Sun/Oracle, an open source databse being used majority of websites today.
What does this mean is that a lot of funds of these open source customers are being redistributed somewhere. Surely, income is generated from these websites; so the money is spent somewhere else besides software. This is where I think I can make a profit.
Here are the major sources of income in open source software:
1. Consultancy; selling of expertise.
To study this how we go to John Resig’s about page
John Resig is a JavaScript Tool Developer for the Mozilla Corporation and the author of the book Pro JavaScript Techniques. He’s also the creator and lead developer of the jQuery JavaScript library.
Imagine if you are the creator of Jquery, world’s most popuplar javascript library, hired by Mozilla Corporation how much will you charge hourly? I have no idea how much but I believe it’s higher than most of us. but let’s compare the guys at debuggable.com. This company was a major code contributor to cakephp in their homepage they charge as high as 90 euros/hr (that’s $121.5/hr or P5,346.00/hr.)
But this company is not even the founder nor the creator, they are only contributors. When you develop an open source project you are the most knowledgeable person there is.
Another example, Guido van Rossum creator of python is hired by Google. His hourly rate must be astronomical!
2. Develop an Enterprise Version
This would be one of my favorite. A simple explanation would be you have your open source software forked at another branch but is sold at a premium. It’s also open source and same license as the community edition but you provide a solid customer support and a dedicated team.
Examples:
http://www.magentocommerce.com/product/enterprise-edition
http://www.webyog.com/en/buy.php
http://www.mysql.com/products/enterprise/
3. Certification / Training / Book sales
Basic explanation, offering your customers the necessary training and manuals for them to use your software properly. The certification is more suited for Companies who provide IT services.
5. Souvenirs & Donations or a.k.a Beer money
Great passive income for your business. If you provide your users the best some of them will give back. Even they don’t give back if they love your project so much they will even tell their friends or write a plug-in.
This may not make a lot. But making money while sleeping is always welcome.
7. Website Advertisements
Good examples I can think of are adsense income and affiliate marketing income. If you have a popular product the traffic on your download page can be monetized.
That’s everything I know, remember I wrote this because I have tried selling CD’s with my accounting software before and I failed these are only my thoughts on my next project. Hopefully this open source model will be successful.
So what do you think is best? Would you develop an open source project soon?
