How to Earn Money From Open Source Projects

Open source projects that are non profit or for NGO or for promotional purposes only don’t pay any money. If you are planning to run an open source project that is a business, then of course it needs money to keep going. Sticking to an open source project can be fun and even profitable but there are some rules you need to follow.

Have a great idea for an Open Source Project but don’t know how to start a business around it? Have you tried to make your open source project profitable and have failed? In this course I will show you how to earn money from your open source projects by showing you real world examples of launching side projects that earn a full time income.

Offering paid support is one of the most straightforward revenue streams for all kinds of open source projects. As a project maintainer, you have a lot of knowledge about the codebase. This puts you in the position to offer consultancy or support services to companies that want to use your code. 

On the other hand, offering paid support doesn’t provide a scalable business model for open source projects. Because most projects are maintained by a few developers, there’s limited time for them to offer support to companies. Bear in mind the time required to improve the functionality and maintain the codebase. 

In conclusion, it’s an effective way to earn some money as an open source maintainer and keep the project going.

WordPress as OpenSaaS

WordPress effectively functions as a free SaaS product: it’s an open platform, and it offers subscription plans with extra features like unlimited storage, automatic backups, customizable themes, and custom domain names. We say “effectively,” however, because WordPress technically comes in the form of a software product you can install on your own web server and maintain independently. The SaaS version of WordPress can be found at wordpress.com. If you choose this service, then WordPress hosts your application for you. However, since there’s no vendor lock-in, a customer can easily switch to a self-hosted WordPress version any time.

Donations

Donations power many open source projects

While not typically used by large for-profit companies, some individual developers make pretty good money by taking donations for their open source work. Patreon, GitHub, and Buy Me A Coffee are all popular platforms that allow individuals and businesses to help support open source projects that they use or want to see maintained.

The downside to this model is that it’s really hard to build predictable, sustainable income from it. Some people will heavily use and benefit from updates while never paying the creators, and this frustrates those who do support the project. If you’ve ever asked your boss if you can start paying for some of the free, open source software you use at work, you know how tough this can be to sell.

Sell associated content

Following on from point #3, you could also look at writing content for OSS rather than maintaining it or providing direct support for a product. If this sounds appealing, look for popular, or even quickly rising, OSS products and start creating user tutorials for them.

Here are a few examples of how you can create content for OSS products:

  • Write and sell books about them. This can be done both through self-publishing or by pitching topics to publishers. The latter will take care of the editorial process and publishing steps, letting you focus on the writing. You’ll have to split the earnings with them, of course, but it will be worth it.
  • Create video courses for platforms such as Udemy and Pluralsight. Doing this will generate passive income in the same way books do after you’ve published them. Plus, these platforms usually provide video training.
  • Write sponsored posts about the products. This does not mean the owner of the open-source product will always pay you to write these posts, rather that some blogs will be interested in the topic and will be willing to pay writers to provide content about other topics.

In all these cases, it’s important to understand that, to make money from an open-source product, you don’t really need to write code. You can provide user-specific content based on these products and still make money.

Software as a Service

An open source project that has generated plenty of demand can choose to offer a Software as a Service (SaaS) business model. This model is most viable for projects that offer a complete application, such as a publishing platform, monitoring tool, or marketing automation tool.

Developers can choose to host the software themselves. However, this means that they have to take care of security, security, and maintenance. 

It’s often much easier and cheaper to pay for a managed offering under a SaaS model. Developers pay a monthly fee to use the hosted solution. Therefore, they can focus on the tool itself instead of all maintenance-related tasks. Moreover, a marketing or content team often doesn’t have the required technical knowledge to host a solution themselves. For that reason, a SaaS solution is a great alternative to make money from open source software.

Dual licensing

Dual licensing allows companies to release commercial software (with a commercial license) that’s derived from free OSS commonly distributed under the GNU General Public (GPL) license. Dual licensing can be implemented in a few ways. In the first scenario, a company releases identical products under a commercial license and under a free license like GPL. In the second scenario, the company releases different versions under different licenses.

So what’s the point of dual licensing? The GPL license allows end users to run OSS, redistribute that software, and modify it. However, you can’t embed OSS solutions into your proprietary (commercial) software and make profit under a GPL license. This is precisely where you’ll need a commercial version of an open source product to have the right to sell your commercial software.

The most well-known example of successful dual licensing is MySQL. The company releases MySQL Enterprise Edition, MySQL Cluster CGE, and MySQL Standard Edition under commercial licenses while still offering two other products – MySQL Classic Edition and MySQL Community Edition – under the GPL license. The commercial versions receive enhanced security features, backups, 24/7 support and more.

How open source developers make money

Conclusion

How To Make Money With Open Source Projects. Think of open source development as an investment: It takes effort to create the project, but once it is out there and people start using it, you can make money from your hard work.

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