Open source software has become exceedingly popular in recent years. In fact, if you have a website, chances are that there is open source software used somewhere on it. Rather than getting tangled up with cryptic legal documents, learn how to make money from open source software and take control of your intellectual property.
Open source software is turning the software industry upside down. You can make money with open source software without owning a proprietary product. How you ask? Learn how to make money with open source software in this exciting new audio book.
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.
Bug bounty programs
Bug hunting, or as it’s usually known, bug bounty programs, is a way of earning money either by reporting errors on other systems or by solving them and submitting your pull requests with the code that fixes them. These programs are usually part of the entire vulnerability audit of the software being tested and accompany other internal processes the developers are implementing.
There are very big companies who submit their products for this type of treatment, and when we say “big,” we’re not kidding. With a basic search, we can find some interesting options, but in order to keep with the theme of “making money from open source,” here are some examples of high-paying organizations with bug bounty programs on their open-source products:
- Mozilla: They have two main programs, one for their actual software and one for their websites. Offering to pay up to $10,000 on the first one and up to $5,000 on the latter.
- Apache: This web server is probably known to most (if not all) back-end developers. Through its program it pays bounties of up to $3,000 to those able to solve the most critical bugs.
- Google Android: Also interested in making the most stable and secure mobile OS out there, Google offers up to $150,000 dollars for the most critical problems found and solved (yes, you read that number right).
There are many different lists of bug bounty programs, but you can find a good, up-to-date one on this website. Overall, this option is quite lucrative if you are able to put in the hours. That being said, you also need to specialize your knowledge and focus on security bugs if you want to reap the big rewards.
Last but certainly not least, aside from bug bounties, you can also get paid by fulfilling OSS (open-source software) bounties over at BOSS, a relatively new initiative that has lots of potential. Here, project owners can submit development tasks that they pay for on completion. This is certainly not as lucrative as the above programs but also requires less of a focus on security and can be tackled with a more generic software development profile.
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.
Make it your calling card for companies looking to hire
Now this one is a bit of a curveball, mainly because it isn’t a direct way of making money from any OSS products you might release. Instead, it represents a way for you to use the popularity of one or more of your open-source products to give you access to companies you normally wouldn’t have.
Maybe you’ve been wanting to get noticed by Microsoft but haven’t had any luck with your job applications. A good option might be to make some useful contributions to its open-source products, such as TypeScript—you could become a regular maintainer for its main product, creating some good OSS support tools (e.g., frameworks around TypeScript or tools to automate the development process), or even one of the main authors of its product.
Whichever way you choose to do it, if you provide quality content for the community that has grown up around a particular open-source product, you’ll get noticed and thus, companies will find out about you and might even consider hiring you to work on their products.
Hosting means offering a fully-managed version of your project, so that when users want to try out the project, or even deploy it in production, they can spin up a remote server with the software in just a few clicks, and not have to worry about operating it in steady state (i.e., not worry about backups, downtime, upgrades, etc.).
Given the popularity of the cloud and managed services in general, it should come as no surprise that this has also become a popular model for open-source. In particular, this has become a common way for the public cloud providers (and in particular, AWS) to monetize open-source projects without giving back to the community, which has led to some complaints and tensions (and the emergence of other models, which we’ll soon discuss).
The hosting-only model can work well. Some companies (e.g. Databricks, Acquia) have been quite successful with it. Yet typically hosting is layered in with a few of the following other models.
Sharetribe as OpenSaaS
Sharetribe, a marketplace builder, is another great example of an OpenSaaS product. It comes in two versions: a self-hosted free version which can be found on GitHub, and a cloud-based hosted version at sharetribe.com. With the SaaS version of Sharetribe, customers receive software hosted on Sharetribe’s servers along with full-cycle support and maintenance, from installation to backups. With the SaaS version, customers don’t have to worry about updating their software, as this is done by Sharetribe. But while the SaaS version receives great support and additional offerings like custom domain and removal of Sharetribe branding, this version of Sharetribe is less customizable, only allowing you to personalize marketplace filters and change colors, images, and block position in the user interface.
There are many ways to make money with open source software. One of the most common ways is to develop new open source software and sell it. This book will show you the way to do that, but it can be challenging.