I was thinking about whether/how I could make my software open source and make a good living. I don’t think this is as thought-through as it should be.
[Originally written August 2000 I think]
Speaking with my developer hat on – I find the idea of open source software deeply attractive. It seems to me a great way to amplify your effort, providing other people are interested in the work. And I love the idea of being able to expose my artworks to people who will appreciate it at that level.
Speaking with my business hat on – it seems like a great way to go bust. I think it’s very shortsighted to work for an open source company without understanding where the money comes from and whether it will keep coming. What I mean is that I’ve spent time thinking about models of making money as a software person and none of them seem too promising.
Of course – with my business hat on – the aim is too make as much money as quickly as possible – it’s a great idea to have a lot of money (if it succeeds) in return for trying something that is very very likely to fail.
The basic problem, I think from the point of view of a company that wants to create a few software products, and not aggregate other work, and not spend time consulting on other stuff is that there is likely to be no income.
On the other hand, if you do commercial software, you can make a product and sell your work – there is some income, but none of the open source magic.
The obvious models:
- Be a hardware vendor (people will pay lots for physical stuff, even if they don’t think that software should have a price), and give away software that’s funded by the hardware. [This model really bothers me - I'm a software person - I don't want to sell hardware - I want people to value my software.] I do not want to return to pre-software-market days.
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speechandbeerFree software, sell services. [Well how well is Linuxcare doing? And others based around this model. It seems to me that there are only a few industries that are willing to pay for services - there are many more that are willing to pay for products. Do you have a feeling for how well this model is doing?]
- speechandbeerFree software, live off grants/academia/bursaries/gifts/handouts/sponsorships. [Let's see I have a mortgage, two kids, a standard of living I'd like to improve, a pension to think about. Uhh this idea does not seem so great. And I can hardly see tens of thousands of people being able to follow this model. I know that the Street Performers Protocol exists and could be applied to software, but this is a very very untested strategy.]
- Two versions of the software – beerFree version and commercial one. [I think that this is dodging the issue. I get to make money out of it, but others that put work into it don't. This seems to me to be unfair. I think that if I value my work at a certain price then how can I not value the work of other's similarly, and pay them accordingly. But making a beerFree version is a sure way to suck money away from the commercial version. Question: how the companies based on this model doing? Well Scriptics/Ajuba experience seems to be saying that the model doesn't work well enough to pay back the VC's - so why should I invest my time and money into this model?]
Esther Dyson listed a bunch of possible web models in Release 2.0/2.1. I think that some of these could be applied to free software….
- Subscriptions. [Hmmm - suppose that something like this could work around open source. If you subscribe, you get the next version before others. Problem - the GPL model makes it impossible to stop others giving it away immediately. You'd need to have a modified GPL that limited people's rights - at least for a while - I can see this causing a bit of a fuss with the purists.]
- Performances/ [Software as a performance. I quite like the idea, but I doubt I could find many people that want to pay to watch me code. Am I wrong? Anyone out there want to pay say $50 for 2 hours watching - email me? Occasionally I'll do amusing things while I do it. Hmm - perhaps I could call it Jefficam. Except I'm not nearly as photogenic. Could work naked - should get some paying punters. Perhaps mix subscription and performance in a kind of open-source-hardware-software sort of way - people would definitely pay for that but I doubt I could persuade my wife that it was a valid way to support for my art.
]
- Spin off goods. Sell the Tanasity/Tangled Time t-shirt. [Again - I think this sucks as a business model. It says that people value goods but not labour. Gee, I guess I could try selling one t-shirt with every piece of software I give away. I wonder how purists would feel about a clause that said 'you can only run this software while you are wearing the $149 t-shirt' in the licence? Or I guess you could sell the documentation at an outrageous price. ]
- Advertising. [I really don't like hiring a video, and having ads on it. How would you like them as part of your software? 'We interrupt your spreadsheet to bring you an informative piece from our sponsor Mortuaries Corp.' All the stuff that (informal evidence) I've heard about this says that while ads subsidise TV, they are not paying the ways of many web sites. Anyone know differently? Anyone have a feel for the amount of money GoZilla is bringing to its creators? (The Radiate blurb says $225,000 a month. I think Gozilla has about 10M downloads. I wonder if it's still $225K or if this was a high point. Anyone know?]
- Fostering transactions. This is a mixture between advertising and sales. Do the Amazon experience in the software. A community that is also a market. [Can you think of a way to do this in a random bit of software - for instance a word processor? The thing is that most apps are not community experience, nor are they good locations for sales. Well, maybe I'm wrong - I guess there are add-ons you could sell - like the electronic dictionary. But I think that this is not too healthy - it means that software will be coming in smaller more limited packages, so that people can sell other stuff as extras. It also suffers in that he speechFree aspects mean that if you are making income from these sales, that there is no defence mechanism against others giving the stuff away for free. ]
- Electronic intellectual services – devise the software in such a way so that to be useful to an organisation they require your services in some manner, or have limited access to the software for a while. Perhaps as an example – software which can tell you about food contents, but you hire access to the database that lists foods and ingredients. [This seems borderline to me. A way to work around the speechFree aspects in order to be able to stop beerFree. I think that this breaks the spirit of freedom. What do you think? Imagine if everyone were to do this. Would you feel okay about it?]
- Intellectual services. [At the moment this seems to be the dominant way that people are saying you should support yourself. I think that this is kind of dumb. It implies that you cannot make a living from making open source software, except perhaps as some sort of short-term scheme that involves parting investors from their money. Or it could mean that you should make Free software, but you should not make it too easy to use or install. You should not polish it because you want people to pay you to do these things for them. Or it could mean that the only sort of software that is viable as a software business is a mega-app, one that requires a team to implement. No space for making a living out of say a graphics application. Anyone interested in doing an Open Source SAP competitor, or similar large-scale project perhaps? ]
- And finally – selling the software. [But there's a massive massive issue as far as I am concerned. The speechFree aspects of Open Source mean that anyone can undercut you, even if they do no extra work; I know of a company that sells copies of Red Hat CD's for about $5.]
It would be really nice if there was acceptance in the open source community that just like any other labour – labour on software deserves to be paid for (if people want payment). But it seems to me that there is quite a deep streak of beerFree in the community. The speechFree aspects of Open Source mean that beerFree is inevitable – like the $5 Red Hats.
The thing is that one of mankind’s most powerful inventions has been the economy. It is the transfer of money that makes all sorts of things possible that would in a perfect free-will way be deeply unlikely; would you rather lie in bed all day with your girlfriend/boyfriend/wife/partner/yourself/whatever or go to work?
So how do you feel about a different view of open source; what if the speechFree aspects were kept, but the beerFree aspects restricted? This would give a possible income to software developers without unduly restricting access to the source. I can imagine various ways of doing this – for instance if a licence made the source available to anyone who wanted it – in the normal GPL way, but said:
If the program was distributed further, then whenever the licensor distributed it they should take a fee not less than the amount they paid, and that they owed a royalty of x% to the program originator (or perhaps an organisation like the Performing Arts Org that collects money from radio stations etc for airing songs.)
Program originator pays contributors in proportion to their contribution – would have to include documenters.
Portions of code could be reused without fee provided that they formed less than y% of the total code, and were less than z% of the program in which they were used – otherwise a royalty would be payable in proportion to the % of code. And the new program would be required to charge no less than that % of the fee of the original.
Program can be aggregated with other stuff (suppose it forms b% of the aggregate) – royalty payable – not less than b% of x% of the sale price of the aggregate. Probably there are other situations that I haven’t thought of. I can see some practical problems – but nothing that couldn’t be overcome with code signing, a descriptive file with any code and a database. The other alternative – there is no place for software developers who want to be paid and develop Open Source.
That’s enough ideas to be going on with.