Open source is not a business model.
Let me say this again. Open source is not, in and of itself, a business model.
People conflate having an open source project with having an open source business. Open source businesses can be done, of course, but open source in and of itself won't give you that business. It is not a business model therefore but rather a distribution/governance model.
The key is that being open source should not be a core value proposition in most cases (unless you're Red Hat) but rather it should be ancillary, merely incidental to your core business. For example, say you ran a task management app company. The core value driver is not whether it's open source or not (to most people). People don't buy based on whether the product itself is open source, they buy because it solves their problem, of task management in this case.
Labeling oneself as "open source" is a classic engineering trap because again, people don't care about that, if a closed source solution can solve their problem more than an open source one, they'll use the former.
By the way, I happen to run an open source task management app (a todo list + calendar hybrid basically, https://getartemis.app) but nowhere do I advertise it as open source, even though it is, because I know my core customers, non-engineers, don't care about that and just want to schedule their days better.
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I am reminded of OpenHunt, an open source version of Product Hunt that was made. The only value proposition was that it was open source, but it shut down precisely because users didn't care about that, they cared whether it had enough cool products (as a consumer) and enough traffic (as a submitter).
Here's one post-mortem: https://news.ycombinator.com/item?id=10940729
> OpenHunt tried solving a problem for the content makers without providing any additional benefit to the content consumers.
> It's a nice, heart-warming mission. But in the end of the day, content is king, that's what consumers want.
> There have been many examples of people rallying around a "free and open" version of a service. They fail to realize that the end consumer barely cares. Look at voat (Reddit), app.net (Twitter), Diaspora (Facebook), even ycreject.com (Y Combinator) tried to be a thing for a while.
> If someone is able to make it "free and open" while also making it a better experience than the alternative, then it'll be a big success. But so far everyone gets that wrong.