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Ask HN: Why don't more open-source projects monetize?

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Re: Ask HN: Why don't more open-source projects monetize?

#81

People don't pay unless forced to do it. In other works, people only pay when there's scarcity . What drives our economy? Scarcity. What's the long term effect of capitalism? Commoditization, i.e. driving the costs down. Some people view open source as being about a post-scarcity economy in which human labor isn't need, an economy based on abundance. That's bullshit though. Open source is about commoditizing software…

>Commoditization, i.e. driving the costs down.

Commoditization is about goods being of indistinguishable quality in comparison with each other, such that the consumer doesn't care which is purchased, ie one barrel of oil vs another.

Re: Ask HN: Why don't more open-source projects monetize?

#82
post #38

Earlier quoted context omitted.

> What drives our economy? Scarcity... Some people view open source as being about a post-scarcity economy in which human labor isn't need, an economy based on abundance. That's bullshit though. I don't think that is the case at all. If I have a woodshop and a customer comes in and hands me wood and nails, and I spend a day banging together a table for them, at the end of the day there is one table. A scarce good - o…

> If I have a woodshop and a customer comes in and hands me wood and nails, and I spend a day banging together a table for them, at the end of the day there is one table. A scarce good - one table is created, no more. That's natural scarcity. We also have artificial scarcity imposed by laws and technology. If you think that's unfair, I might agree morally speaking, but then we'd end up talking about how we're actuall…

What makes Labor Theory of Value fundamentally flawed? The fact that it has the letters M, A, R and X tied to its authoriship?

I agree that toilling at useless task adds zero value in the best case -more often than not, it adds negative value by creating commitments to perform further useless tasks in the future- but what is so wrong with considering costs of production within the value added? I think it makes more sense to recognize zero (or negative) value added task for what they are instead of declaring them "marginally valueable" and then try to push the externality of their cost unto others.

Re: Ask HN: Why don't more open-source projects monetize?

#83

Because monetizing your open-source project means you take on a second job. Here are your choices: * Turn your OSS project into a company (Docker). The pro is that you can capture a lot of the value, the con is that you're splitting your project into CE/EE and also now you're a CEO * Give the software away for free and charge for the hosting (Gitlab). Pro here is that you get recurring revenue, but the con is that no…

Ask for donations (Babel, Webpack). Pro: this works for tools and libraries (not just apps) and you can keep your mission. Con: Companies feel these donations have ambiguous deliverables. There's a lot of mental overhead too (How many projects can one company fund per month?)

I don't write software, but I have run various small websites for something like 15+ years. I have always gotten more donation money than ad money off my projects. I switched to a tip jar (last year, iirc) and that further improved my take. (It isn't much, but it beats the figures I have seen quoted by most people when data has been asked for on HN. I also don't get much traffic. For the traffic involved, I think it is pretty good.)

I have also seen Patrick McKenzie talk about the fact that he won't donate money to open source, but if you are willing to write an invoice for him, he is happy to give you money. The reason is that he needs to justify his business expenses on his tax returns and a "donation" is charity that he can't justify to the government, but an invoice for a product he uses in his work is a legit tax deduction. He has talked about how he thinks open source should make invoicing business customers painless. I don't readily have a source at my fingertips, but I bet someone on HN can come up with a link.

A compendium of my own writing about tip jars: http://micheleincalifornia.blogspot.com/search?q=tip+jar

Re: Ask HN: Why don't more open-source projects monetize?

#84

Because monetizing your open-source project means you take on a second job. Here are your choices: * Turn your OSS project into a company (Docker). The pro is that you can capture a lot of the value, the con is that you're splitting your project into CE/EE and also now you're a CEO * Give the software away for free and charge for the hosting (Gitlab). Pro here is that you get recurring revenue, but the con is that no…

Great list with options. I think more developers should opt for the Patreon. Eugen Rockho aka Gargron is making 3k with this for his Twitter alternative Mastodon @ https://www.patreon.com/mastodon. It is possible to fund a developer, but can you fund a whole company this way?

Liberapay is another platform, an open source Patreon alternative, also has a few funded developers and dev-ops like Technowix @ https://liberapay.com/Technowix/.

Re: Ask HN: Why don't more open-source projects monetize?

#85
post #65

Because monetizing your open-source project means you take on a second job. Here are your choices: * Turn your OSS project into a company (Docker). The pro is that you can capture a lot of the value, the con is that you're splitting your project into CE/EE and also now you're a CEO * Give the software away for free and charge for the hosting (Gitlab). Pro here is that you get recurring revenue, but the con is that no…

Very good list. I would add that most open source projects have many people working on them. So suppose you actually manage get paid despite all that -- how do you distribute money fairly? This is a huge problem can could actually slow the project down by leading to hurt feelings. Ironically, it's almost better for the group if nobody gets paid. Corporations have evolved all sorts of imperfect systems to solve this p…

it's almost better for the group if nobody gets paid.

Relatedly: Studies show that paying people zero money and giving them respect gets better results than paying some pittance well below market rate. The study conclusion was to the effect of "Pay enough (market rates) or pay nothing. Don't pay some pittance because it is all your project can afford."

Re: Ask HN: Why don't more open-source projects monetize?

#86

Apart from the causes, the reality is that very few companies have been successful at monetizing open source, and many of the ones that do only appear to be successful because of "echo chamber" effects. Red Hat Linux is the main counterexample. Companies do pay for their support, but CentOS nips at their heels and Red Hat has also lost the support of the "enthusiast" community which has largely gone to Ubuntu. Cloude…

Not to diminish your point about CentOS interacting with RedHat's business model, but note that RedHat acquired CentOS in Jan 2014:

https://lists.centos.org/pipermail/centos-announce/2014-Janu...

Re: Ask HN: Why don't more open-source projects monetize?

#89

Because monetizing your open-source project means you take on a second job. Here are your choices: * Turn your OSS project into a company (Docker). The pro is that you can capture a lot of the value, the con is that you're splitting your project into CE/EE and also now you're a CEO * Give the software away for free and charge for the hosting (Gitlab). Pro here is that you get recurring revenue, but the con is that no…

I'd also say try out Baqqer. You can take pledges to help sustain yourself and your project there.

Re: Ask HN: Why don't more open-source projects monetize?

#90
post #83

Because monetizing your open-source project means you take on a second job. Here are your choices: * Turn your OSS project into a company (Docker). The pro is that you can capture a lot of the value, the con is that you're splitting your project into CE/EE and also now you're a CEO * Give the software away for free and charge for the hosting (Gitlab). Pro here is that you get recurring revenue, but the con is that no…

Ask for donations (Babel, Webpack). Pro: this works for tools and libraries (not just apps) and you can keep your mission. Con: Companies feel these donations have ambiguous deliverables. There's a lot of mental overhead too (How many projects can one company fund per month?) I don't write software, but I have run various small websites for something like 15+ years. I have always gotten more donation money than ad mo…

Interesting idea...

Original source could be the tweet embedded in https://supso.org/blog/funding-open-source-by-rethinking-the...

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