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The Almighty Buck Programming IT Technology

Funding Open Source? 264

One of the beautiful things about Open Source is that the barriers to entry are next to non-existent, and the adage "have compiler, will travel" embodies this fact well enough. However, as projects grow in size, they will soon face financial stumbling blocks, not to mention a need for increased visibility. How does one best market an Open Source project? What can Joe (or Joni) Coder do to increase their project's financial stability? Have the financially minded people of the Free Software community thought out the possibility of an Open Investment firm? Read on for Slashdot readers who are asking these exact questions!

An Open Investment...
Luke asks: "Open Investment is a concept whereby Open Source principles are applied to making money. Open Investment is inspired by recent articles and diary entries, on Advogato, lamenting the lack of funding of strategic projects. Eric S. Raymond's 'Cathedral and the Bazaar' papers describe how Open Source projects get off the ground by starting as a programmer's itch turning into something useful to other people.

What if there are strategically important projects that just take too long to ever get off the ground, such as an Open Exchange replacement? With the Economist's recent news on how users expect more and more from IT, how is the Open Source community ever going to keep up? Who is going to pay for it?

The principle behind the Open Investment Initiative is to encourage the Open Source Community to take matters into their own hands, by getting smarter about money. If that happens to mean that programmers become part-time wheeler-dealers and happen to _like_ it better than programming, then good for them! Open source developers (or anybody else for that matter) could even band together to form investment syndicates, with the aim of gaining financial independence.

For the most part, the expectation is that several smart people willing to learn about investing, negotiating and making money get together, and succeed where they would be unable or unwilling to do anything on their own.

Who wants to give it a shot?"

...for a Common Situation?
Yaztromo asks: "I'm the project administrator and lead developer for an Open Source project that brings PalmOS handheld synchronization to Java-enabled platforms, called the jSyncManager.

I started the project back in 1997 for personal use (the full history of the project as available here), and in November of 2002 decided to make it Open Source under the GPL (although parts have since had their license changed to the LGPL to make using our API (especially our plugin APIs) easier for all kinds of developers). After about 8 months we're getting pretty close to final releases of the project for public consumption.

So I've been at this for 8 months, with some success, but am getting to the point where two things concern me:

  1. How do I best market my project?
  2. How can I raise funds to help continue the project?
I imagine that most Open Source projects of any decent size face these same questions, so I'm hoping that Slashdot's contributors who have been involved in other Open Source projects that have faced similar questions would be interested in sharing their ideas and experiences in these two areas.

How have you raised your Open Source projects public profile (particularly if it isn't something that is of general use), and how have you gone about obtaining funding to help take care of those annoying little costs that creep up along the way?"
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Funding Open Source?

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  • Gee... (Score:2, Funny)

    by mmol_6453 ( 231450 )
    I thought it was called OSDN. Or IBM. Or Red Hat, Suse, and Mandrake. Oh, and don't forget Paypal!
  • some god damn kiddie does the same thing it took you 4 years to do, in two months and gives it aways for free. Nope. Hobbists always win.

    My $2.
    • This is actual big problem in certain area since programming skill is almost everywhere.

      However the kiddie cannot go on site to install things, the kiddie cannot offer service contract, the kiddie cannot talk to the user professionally, the kiddie cannot document system properly...

      If you show professionalism in your 'free' work you can turn it into money and not worry about the 'kiddies'.
    • by Yaztromo ( 655250 ) on Monday July 14, 2003 @11:36PM (#6439780) Homepage Journal

      some god damn kiddie does the same thing it took you 4 years to do, in two months and gives it aways for free. Nope. Hobbists always win.

      Having once been one of those kiddies, I can say that this only really applies to the most simple applications.

      The jSyncManager looks deciptively simple on the outside (on purpose -- we have a very good GUI developer who takes HCI stuff pretty seriously involved in the project), but it's inner workings are more complicated. Its multi-threaded, object oriented protocol stack is beyond even the most talented "kiddie".

      It's an exceedingly difficult thing to "get right", in part because no official protocol specs have ever been published.

      Anyhow, for us that has never been a fear or concern. A bigger concern is that at some point in the future Palm will simply drop their synchronization protocol altogether, or make it significantly more difficult for us to reverse engineer.

      Yaz.

  • by Anonymous Coward
    So people will make investment decisions based on BSD mailing list flames, sourceforge bugs, and slashdot first posts? Yeah, that will be a big hit on Wall Street.
  • Ideas (Score:5, Interesting)

    by Dominic_Mazzoni ( 125164 ) * on Monday July 14, 2003 @07:54PM (#6438636) Homepage
    The article's idea of "Open Investment" doesn't seem to be about finding ways to fund open-source projects directly, but rather on educating developers on how to become personally wealthy so that they can donate their time to open-source. Or did I misunderstand it?

    Anyway, I think Yaztromo just solved his problem #1 - by getting his question posted on Slashdot, I don't think he'll have any trouble marketing his project now, assuming it's any good. I'm interested in #2 as well, though - raising funds to accelerate development. I'm the lead developer of Audacity [sourceforge.net], and I've been thinking recently of various ways we might be able to raise money to pay a full-time developer:

    1. Lots of small donations, targeted at specific features. Simple to set up, but how likely is it that any one particular feature would get enough funding to really pay for its development?

    2. Corporate sponsorship - anyone out there successfully gotten a corporate sponsor for an open-source project before? How did you approach them? How much will they try to control how the money is used?

    3. Non-profit grant - we could write a proposal to add a large, significant, but specialized feature, such as making Audacity optimized for blind users, or creating a version for kids, and then find an appropriate charityto fund it.

    Anyone had luck with any of these approaches? Other ideas?
    • Mixed licensing? (Score:5, Interesting)

      by msimm ( 580077 ) on Monday July 14, 2003 @08:16PM (#6438810) Homepage
      What about mixed licensing? Main project becomes a commercial project (with expected enhancments, gui, stability) and feeds back into the pool after so long.

      Or the club. Mandrake or WineX style. Members get to vote on what features get more focus.

      I've been thinking about this more and more from the other side of the coin, as a young OSS user who would like to support developers *and* would like to see more polished projects.

      Audacity is a great example of a really cool open source project that could also use a little shine. One way or the other its a terrific project (if you haven't guessed, I'm a user).


      • We need a group to setup a site. I should be able to click on a link and then click join OpenSource or whatever. Then I pay $5 a month and I fund open source development. I pay for votes transgaming style.

        Me and the other paying users vote on where the money goes, programmers can sign up and get money to develop certain applications or services, and we can set up bounties, where programmers can accept.

        When the code reaches beta we review it to make sure it works, and when its finished they get paid.

        Tran
      • Re:Mixed licensing? (Score:5, Interesting)

        by Yaztromo ( 655250 ) on Monday July 14, 2003 @10:46PM (#6439562) Homepage Journal

        What about mixed licensing? Main project becomes a commercial project (with expected enhancments, gui, stability) and feeds back into the pool after so long.

        I've been thinking about a similar idea, but instead of mixed licensing, I'd keep the GPL/LGPL mix we're currently using, but sell a version that is wrapped into a friendly installer.

        One of the big problems we currently have is that there are a variety of libraries the user requires. Some of these (like jDOM and jUSB) are Open Source, and we can include them. Others (like the Java Communications API) can be redistributed for some platforms, but not for others. Regardless, currently it is up to the users to find, download, and install these pre-requisites before running the jSyncManager. And for some users, this is quite a bit of effort.

        I'm currently thinking of creating some pre-packaged installable versions that use platform-specific installers, that include all the libraries we pre-req that we can get free redistribution rights for. These packages could be sold with bundled priority e-mail technical support for a year (or somesuch).

        RedHat and others seem to do well with this model in the Linux world, so it could work for us. Making it easier for users to get the jSyncManager running would certainly be an added benifit.

        Yaz.

        • Ok, I am going to sound like a troll here. But in Open Source essentially there is no way to make money by selling the software. Even with an easy to use installer.

          Lets put it this way. If I had the ability to pay nothing or a something and the difference was an installer then I would pay nothing.

          I was at OSCON last week and heard Tim OReilly talk about the three C's. (Commodization of software, User Customizable Systems, Network Enabled Collaboration) Essentially the commodization provided by Open So
          • But I think value *can* be added. I agree if you put a price on something that you can already get for free you've got a tuff sell, but thats not what I'm talking about.

            WineX gives you voting, nicely packaged releases and propreitary extentions. Basically you end up with a very proffesional package at a reasonable price.

            Of course you can get it for free, but only some of it and you have to compile and install it yourself.

            I think OSS is growing beyond its original roots and projects are becoming mor
    • I am working on the specification for a suite of programs called "OpenDemocracy" consisten for now of "OpenPolicy" and "OpenVote"...these programs will allow for the distributed discovery of policy and for Internet based voting.

      I am certain slashdotters see the future of democracy is the net...and that open source software is the key to increasing the amount and quality of democracy [I posted an article about the first use of Internet voting in an election in North America which will take place in Markham
    • by iendedi ( 687301 ) on Monday July 14, 2003 @09:21PM (#6439129) Journal
      I have been thinking on this problem quite a bit lately.

      Consider the following:

      Company XYZ launches an OSDN like websight that maintains a dependency graph of open-source projects (e.g. FOO project depends on code from X,Y,Z and libraries V,W).

      The community can vote on and manage those dependencies and their relative importance. Any entry in the project database only lists it's direct dependencies (which themselves may have others). The system will self-organize and may require some interesting checks and balances but could be done.

      The system perhaps begins as a donation website to "donate" to projects that you want to support, but could very quickly mobilize marketing to lobby companies that use projects to donate to those projects, etc...

      The company running the website takes a commission from every "donation" or payment. We want this. This incents that company to continue and keeps it in business.

      The balance after the commission is split 50% / 50% between the project principals and the dependencies. The 50% going to the dependencies is split according to the voted importance of those dependencies on the project. For each dependency, 50% is taken for that project and the other 50% split amongst it's dependencies, .. ad infinitum (until we cannot split anymore [1 penny] or dependencies run out).

      All proceeds that go to project principals are really just numbers in accounts on the website associated with open-source projects, and while eventually it may make sense to do further breakdowns according to project members, in the beginning, the company running the website could just issue a check on a periodic basis to whomever the agreed-upon organization or person is that is associated with that project.

      If you allow this model to evolve over time and provide the company running the website with enough financial motivation (e.g. good commissions), it is highly likely that it would become a mobilizing force for raising funds for projects.

      But the best part would be that open-source authors could collect royalty checks for many years for their work, much like book-authors do.

      This model may not be perfect, but I think with the right company and a willingness to evolve this basic model into something that fits with community needs, it could become a powerful force for rewarding and compensating open-source contributors.


    • Have people vote on a specific feature. Set your rate which you expect people to pay for that feature, and then have people pay.

      The other way is via membership, like what the EFF does.

      But in my opinion there should be some centralized open source funding group which everyone can join, instead of divide evverything.
    • >Anyone had luck with any of these approaches?

      I'm getting a $2000 stipend from my university [csuchico.edu] to work on my project [ilohamail.org] this summer. All I had to do was write a proposal [ilohamail.org]. I also entered the project to a student research competition and got $200 in prize money ($200 for a 5 page paper and two 10 minute presentations isn't that bad -would've been $500 if I'd gotten 1st place though). Apart from that, I got a $1000 "donation" to add a new feature, about $200 worth in contract work related to the project, an

    • Re:Ideas (Score:3, Interesting)

      by tupps ( 43964 )
      What about if you had a bounty clearing house for monies?

      A user of the product would like feature X, and they are willing to pay $5 for it. He can put the details and pay the money, which is held in trust. Whoever is responsible for the feature being added then would be paid a bounty for the feature, in this case $5. If you had many people asking for a particular feature then you could end up with quite a few $$$ allocated to a feature. It would also make it easier to priotise the features to be added to t
    • You may want to contact the Crystal Space folks about seeking sponsorship -- their front page shows they got sponsorship from ATI. It wouldn't surprise me if at least one sound card manufacturer is willing to sponsor Audacity, since new chipsets like the Envy24HT are being pushed for recording on a budget, and a good free (as in beer) mid-end audio program would make a great bundled app.
  • Tax deductible? (Score:3, Interesting)

    by pbemfun ( 265334 ) on Monday July 14, 2003 @07:55PM (#6438640)
    Here's another question. Is donating to an open source project tax deductible?
  • by Peter Cooper ( 660482 ) on Monday July 14, 2003 @07:55PM (#6438643) Homepage Journal
    If you have a site with lots of content, say a knowledge base, or multiple language installation guides for your software, or a big forum.. then using Google Adsense [google.com] might help bring some money into the coffers. I know quite a few people who get four figures a month rolling in.

    The benefit of this is it doesn't infringe on any ethical issues.. such as.. this company gave me $1000 and asked for 'X feature' which might harm the program's reputation.. should I add it? should I not?
  • by TWX ( 665546 ) on Monday July 14, 2003 @07:55PM (#6438645)
    Some of the open source projects deal directly with hardware. One of the things that we as OSS users can do is to contribute money and/or hardware to the developers, so that they can afford the equipment that they need in order to develop modules.

    An example of this is the various 802.11* projects for different chipsets. Originally .11a was the goal, then the a/b chipsets were released. Then the b/g chipsets, and now the a/b/g chipsets. We still don't have an open .11a implementation, not to mention the others. Some of the projects, like the atheros chipset project, aren't terribly far off from .11a, but without more hardware, the variants won't be completed.

    Get together on your mailing lists, and buy the developer some hardware. That way, they have more of what they need to work with in order to make use of their programming skills.
  • by bad_fx ( 493443 ) on Monday July 14, 2003 @07:55PM (#6438648) Journal
    Dang, all these years I thought it was "Have compiler, will sit in basement."
  • by winkydink ( 650484 ) * <sv.dude@gmail.com> on Monday July 14, 2003 @07:56PM (#6438649) Homepage Journal
    Hire a good business person with experience raising money.

    Give them a percentage of the enterprise

    Give them whatever support they need to raise money regardless of how stupid or irrelevant you personally think it may be

    Don't confuse ownership with control

    Focus on being rich, not on being king


  • A lot of things like
    - A commercial free based spin off
    - form company for services etc, or total solution provider
    - consultant
    - books

    I'm in a open source project, and nearly tried them all. While true that they are possible, they only tend to work for very high profile projects.

    Moreover, you'll need several manyears worth of polishing to even qualify.

  • All Open Source developers eat at soup kitchens and sleep at the YMCA between welfare cheques. Well.. not all; Theo de Raadt is too cool for that.
  • by brentlaminack ( 513462 ) on Monday July 14, 2003 @07:59PM (#6438683) Homepage Journal
    Back in my audio engineering days, there was a company that made transformers (hardware). In order to get people to buy their transformers, they gave away schematics (software) of how to build an insanely great preamp using their hardware.

    Several Open Source projects are nicely funded doing the same thing. Take for instance the OSS telephone project Asterisk [asteriskpbx.org]. The software is made available to enable more people to buy and use a particular telephone line interface card. Other cards are supported in the software, but the sponsoring company's is obviously supported first.

    So, one avenue is to partner with a hardware maker, in the case of the PC to PDA sync, partner with an up-and-coming desktop hardware manufacturer, or a similar PDA maker.

  • Sponsorships! (Score:5, Interesting)

    by SlashChick ( 544252 ) <erica@noSpam.erica.biz> on Monday July 14, 2003 @08:00PM (#6438685) Homepage Journal
    "How can I raise funds to help continue the project?"

    One word: sponsorships.

    No, I'm not talking about T-shirts with your project's name on them... although if you think that will help, go for it. I'm talking about finding companies that will actively sponsor your development.

    For instance, my company [simpli.biz] has been in talks with both the PHP project and the PostgreSQL project about sponsorship. (We haven't officially contacted the Postgres team, but we will for our August advertising budget.) We're happy to sponsor open-source projects for two reasons: one, we use these projects to make money, and two, because people who are interested in a particular project are often looking for a company that offers support for that particular project.

    There are lots of open-source projects out there that have referral links or sponsorships from companies that use that project to make money. For us, sponsorship is huge, since we want to become well-known in "niche" markets like PostgreSQL web hosting, as opposed to the generic and overblown "virtual web hosting" category.

    So approach companies that make products that depend on your project and ask them to sponsor it. You may find a company that uses your project to make money is more than a little happy to kick back $50/month for a banner ad or text link on your project's website. Don't be afraid to ask!
  • If it is a successful open source project, then it will have high visibility and should consequently have ample means of distribution from many sites. That seems to be the very definition of success in open source.

    You can still be profitable if you have some value added service provided with the product. You can't really have any benefits within the product itself as it is open source, but you may be able to offer support for your item.

    Red Hat capitalized on something similar, as early versions of linux w
  • I had found this excellent article a few days ago:

    http://linuxtoday.com/infrastructure/2001041200620 OPBZCY-- [linuxtoday.com]

    It is about Open Source Economics, money from open source, and what are some economics-related myths about open source.

    Though it is not "exactly" relevant to this topic, it talks about related issues.
    • I think I've seen that article before, but just to be sure I read it again.

      I have to question the description of this article as "excellent." Rather than describing how open source can and does participate in economics, every question is answered with a dismissal. The conclusion itself is a dismissial:

      Is it possible to make money off Open Source? In the light of all that we have discussed, this now seems a rather petty and inconsequential question to ask.
  • by Peter Cooper ( 660482 ) on Monday July 14, 2003 @08:03PM (#6438706) Homepage Journal
    If you can offer service contracts on free software, you can really bring in the money. Sure it might not be a lot of money each time, but if you have 50 people, say, who need forum maintenance, and you provide free forum software.. even ten bucks a month from each of them adds up big time, giving you time to get on with more coding.

    The real money is in recurring charges, not one offs. So offer consultancy and service contracts. Free software has the allure of being a low up-front cost, and this means you can actually sell them recurring costs which probably would have cost more than then buying decent proprietary software anyway!

    Still, it's a good money maker.. just offer support on your systems/code/application.. and cash in on your hard work.
  • Idea (Score:4, Funny)

    by Micah ( 278 ) on Monday July 14, 2003 @08:04PM (#6438716) Homepage Journal
    1. Write the code. Demonstrate it to people. Maybe distribute it as free beer software in binary-only form.

    2. Offer to sell it for $XXXX to a buyer under any Open Source license they both agree upon.

    3. Profit!

    (Uh oh, something's wrong, where should the "???" go?)
  • You may say Duh!
    But it is a fact of the industry.
    As noted in the story, the OSS projects usually start because a developer had an itch. The reason to start a project may be "just because I can", doing something different and innovative, this feature is not available in current applictions or I want it in a different way. If what you are developing is not available already then there may be a market for it. So once you get over the itch, try developing something that has demand in the market. Its same as dev
  • Open Investment? (Score:2, Interesting)

    by TallEmu ( 646970 )
    The problem with open source is that you can get the code for free. The great thing about open source is you can get the code for free!

    Our company looked at developing and releasing open source products based on the "Tall Emu" public licence (for want of a better name).

    The concept was basically to sell the product as a non-free solution until such time as milestones were met (revenue, units sold, whatever).

    These terms were to be included in the licence.. something along the lines of "This licence w
  • by RavenDarkholme ( 27245 ) * on Monday July 14, 2003 @08:11PM (#6438771)
    How have you raised your Open Source projects public profile (particularly if it isn't something that is of general use), and how have you gone about obtaining funding to help take care of those annoying little costs that creep up along the way?

    Okay, I have a tiny open source project that no one's ever heard of, but I've been working on it for a few years and have tried various things.

    Two parts to this, I guess. One, starting out, requiring a link back (or just asking for one) ends up with a bunch of sites promoting your work. This can raise the public profile of your project, because all the people who see the link and think the app is cool come running over to your project page. There are other ways to do it, of course. (submit to Slashdot anyone?) There's also Freshmeat and other free software directories to get the word out.

    I'm really sad to say that the problem with funding, as I see it, is that a lot of the time, the funding just isn't out there unless you have something big and in wide use, like an O/S, or a popular server (Apache, Sendmail, MySQL), or something that is tending toward apps that would be used in a business environment. Also, a really really useful app where an equivalent doesn't exist has the potential to attract funding as well.

    You can solicit donations, but my experience is, most of the people who are going to use the application in a serious commercial environment or to help them make a profit donate zip. People who will be using it for personal use and can't afford to donate often donate a couple of bucks. People who demand free technical support because they don't wanna read the manual RIGHT NOW DAMMIT don't generally donate anything either.

    Donations aren't generally a good business model.

    (Unless you can get tax exempt status...but I digress.)

    Really, it seems that one needs a sales manager or an evangelist -- someone who really enjoys going out and *selling* the project. Not in the sense of "buy this software," but in the sense of, "Hey, Mr. Corporation/Investment entity -- if you invest in this it'll be really cool and people will love you and your stock will go up to the heavens! Yay!"

    But most of us just want to sit around and code -- the sales thing just isn't attractive. One option I've explored is finding a salesy kind of person I can trust, and asking them to take on that kind of thing for a split of the "take." That has worked pretty well on a small scale, so I'm pursuing it more. If you're a coder who is also salesy, so are extremely lucky and talented. If not, find a buddy and make them do the evangelization.

    In the meantime, get a day job and work on your project in your off hours. That's all the funding I've needed so far. :-)
    • The Public Software Fund [pubsoft.org] already has tax exempt status. As long as you assign the copyright to the funded improvements to a non-profit, the donor can get a break on their US federal taxes.
      -russ
  • LinuxFund, anyone? (Score:3, Insightful)

    by Temporal ( 96070 ) on Monday July 14, 2003 @08:15PM (#6438799) Journal
    Errm... http://www.linuxfund.org/ [linuxfund.org].
  • by Arandir ( 19206 ) on Monday July 14, 2003 @08:28PM (#6438872) Homepage Journal
    The FSF groupies keep saying it's free speech not free beer. They keep saying that the GPL doesn't prevent you from selling the software. They keep saying Free Software can be commercial software.

    So just sell the software! You'll go broke, but at least you can hang out with the FSF groupies in the unemployment line.

    p.s. The FSF itself does NOT say this, only those who think RMS is their savior, but never bothered to read any of his writings.

    p.p.s. And of course, if you're the typical slashdot reader, you still won't get it. So let me spell it out: you can't make a living selling Free Software by itself.
  • by banal avenger ( 585337 ) on Monday July 14, 2003 @08:33PM (#6438907)
    I might let my lack of knowledge show through here, but what exactly are these "annoying little costs that creep up along the way?" It seems to me that coding requires 2 things:
    (1) Hard Work
    (2) Free Time

    I have a slight issue with funding Open Source because it's kind of like Why don't I just buy a license instead? How is donating any different?

    As for getting your name out there, make sure your product fulfils a needed gap. If it's a "free" alternative to an expensive product, make sure people who need to use the product are aware of it.

    But most of all, if your project was originally merely because you need it, don't let it get out of hand in size and scope. Keep that goal in your mind, and remember that that is your purpose.

    As an example, I'm working with a group right now that started out fulfiling a needed gap in the education at my college. But now they're trying to move to being a non-profit company, and raising "investment capital." Don't ask about the how some people on the project think those entities can co-exist. The truth is, it's tough for them to. And the project is starting to grow exponentially before it's ready, and the original goal of fulfilling the gap in the education is now second priority to making money.
    • by nuntius ( 92696 ) on Monday July 14, 2003 @08:52PM (#6438995)
      3.) bandwidth
      4.) domain names
      5.) server hardware

      For some people, $50+ per month can be quite a pinch.

      Frequently, the need for money comes when some developer has a financial crunch and is faced with the need to work more paid hours. He can either resign from the project or ask for money.

      Another common case is that the user and developer base grows and bottlenecks appear. Examples include mailing list moderation, design lead, and software repository moderation. Sometimes, these bottlenecks require someone to commit a significant chunk of time to the project. When this happens, the developers as a whole fish around for both money and someone gullible enough to drop their real job and work on the project full time.

      In the end, its a developer's dream to nurture his project that leads to the desire to let it grow and the consequent need for more funding.
      • These are exactly the sorts of little costs that have currently cropped up -- internet costs.

        We've done well for some of these things -- we're using the webspace SourceForge provides for our project, for example. But domain registration still costs, as does our mailmap system.

        And the project has become big enough that I can quite easily spend an entire 8+ hour day working on it, and I frequently do. As the lead developer and the project administrator and the primary project evangelist and primary techni

  • Public projects are the de facto R&D lab of commercial free software vendors.

    Unlike a "high on a hill" lab owned by some big company, our R&D is cheaper/faster/better -- but it ain't free. In my case, and many others, the funding is falls below the costs.

    We need two things: _Will_ (self interested one could argue) from the vendors to pay the bills. _Mechanism_, to arrange that payment (not merely "paypal buttons" -- higher level mechanism, so that the vendors are assured technology transfer an
  • Just my little experience from the POPFile project.

    1. Money

    All the money I get from POPFile is through donations made through Amazon.com or PayPal. This brings in enough money to keep me *very* interested in the project, although it does not cover the rent at this point. However as POPFile's user base grew I saw donations grow with I would estimate around 10% of users donating an average of $20.

    2. Marketing

    I spend no money on marketing, but I am *very* nice to any press that want information on POPFile. They are your friend since they will advertise your product for free if you can get them to write about it. The key to getting them to write about it is to think of the "hook" that they will use. All writers have a "hook" or key idea in the story that they are writing about. If you can relate your product to a hook then you can get them to write about it. In the case of POPFile the hook is spam. Although POPFile is designed for generic email processing it's good at fighting spam too and so I work with writers who deal with the spam problem and they in turn mention POPFile.

    On a related note I'd say that the free (as in beer) nature of free (as in speech) software is also a big plus for journalists. There's nothing like recommending a product to their readers that is free.

    3. Be Nice To People

    Word of mouth is very important to any product (commercial or not) and that means answering every single email you get. I read every message in the POPFile forums and answer every email sent directly to me. This is vital because people then realize that the community around POPFile is welcoming and they feel more comfortable using the tool.

    John.
  • A couple of ways... (Score:5, Interesting)

    by femto ( 459605 ) on Monday July 14, 2003 @08:50PM (#6438989) Homepage
    Find six people who want a piece of work done. Charge each of them 20% of the normal rate, in return for you keeping the rights to all work produced so you can release it as opensource

    Also, by the time you have become 'independently wealthy', you will probably be old, decrepit and be only be able to use the money to pay for a better funeral (or leave it to a bunch of spoilt brats who will spend the rest of their lives fighting each other over the inheritance).

    Forget about all this crap. Just get on and live the life you want to live *NOW*. If you want to put more time into developing opensource stuff, just get on and do it, even if it means compromising in other, less important, parts of your life (like being enslaved to becoming financially independent). While you figure out all those complicated plans, your body is busy dying.

  • Another way that you can make money off open source is by leveraging the reputation you get from being an open source developer. In my own case I created POPFile an open source email filtering/sorting tool which some people use for spam fighting.

    Because the project is open source many people are using it and my knowledge of spam went up, because of that I got invited to the MIT Spam Conference. Because of that I'm now a paid consultant for ActiveState on their Anti-spam Task Force. I never would have be
  • The biggest source of funding I see for Open Source development is companies who will contribute developer time in order to make an Open Source project suitable for their use. If your project is nearly good enough for something that some company wants to do, it's more cost-effective for them to pay someone to add the remaining features than to reimplement it in-house from scratch or to try to make a proprietary product work for their purposes.

    Of course, this isn't useful for Palm-syncing software, since I
  • by jkauzlar ( 596349 ) * on Monday July 14, 2003 @09:31PM (#6439200) Homepage
    This is a serious problem that I've put a lot of thought into myself, being an open-source developer. It seems like a couple of factors come into play.

    Word of mouth advertising is the only real way for an independent project to get off the ground. If you have a good product, then people will use it. You can add lots of momentum by getting hosted by an organization like Apache or Tigris.org.

    What it comes down to is having a stable product with a good user-interface, if applicable, good support, good distribution (not just makefiles, but rpms or installer software), good logging, etc.

    The perfect book to describe all of this is Luke Hohmann's latest book Beyond Software Architecture [amazon.com], which I would highly recommend. It goes into great detail to explain how to develop software that people will want to use, open source or not.

    Anyway, the quality of the product is first and foremost in open-source because advertising money is just not there. Most IT management are not tech-savvy and pay more attention to colorful ads than what the gurus are saying-- which makes it even harder to get the product used. The products that do get used in businesses are typically only the 'standards' like Apache or Sendmail, which have gained industry-wide acceptance.

  • research funds (Score:2, Insightful)

    by rabbits77 ( 453747 )
    Computer science as a scientific discipline hasn't exactly been underfunded or anything. This question is a bit naive in that regard. All this boils down to is private and public funding of basic software research and development. As such the usual sources are government entities and large corporate interests. DARPA anyone? IBM, sun, apple, etc all have financial stakes in "open source". Probably what is needed is a streamlined mechanism for applying and receiving these funds but isn't that what CollabNet(s
  • Hi Everyone:

    I'll probably try to get around to replying to many of your posts directly (will, the really useful ones at least :) ), but I wanted to take a moment to thank everyone for their input thus far, and reply to some of the recurring ideas and themes.

    The jSyncManager has, in fact, been around for quite a while. I started working on it back in 1997. It eventually became my thesis project [brocku.ca]. Shortly after graduating from Brock University, I joined up with IBM, working at their Toronto Software Lab.

  • by twitter ( 104583 )
    Much of the logic here falls into the traps set by traditional closed source software companies. The threaten the user with, "If you don't do what I say, you won't have any software." This statement from above:

    With the Economist's recent news on how users expect more and more from IT, how is the Open Source community ever going to keep up? Who is going to pay for it?

    Is grounded in this kind of faulty logic. You have heard it before as, "free software can never produce a working kernel" or "free soft

  • Patronage... (Score:2, Interesting)

    It sounds like being an open source developer is becoming more like being a playwright. You need to find some wealth patron that will be willing to give you some money. Nowadays, it seems the patrons should be companies like RedHat. Let's face it, without Linux and open source, RedHat wouldn't exist. They should give a little back (they probably already do, but let's squeeze them for a little more!)

    The only other thing remaining is to find muses for all the developers. That could be a tough one!

  • The fact that you just can't turn a pretty penny on the production of Free Software, like you can with proprietary software, does not make it an economist's nightmare.

    The way some people seem to perceive the threat of Free Software reminds me very much of a passage in Robert Heilbroner's book "The Worldly Philosophers" on Frédéric Bastiat. In Chapter 7, "The Victorian World and the Economic Underworld", Hielbroner reproduces Bastiat's satire of a manufacturers petition to make an ordinance again


  • There is no 'marketing' of the the type of OS project your describe. A Palm-Java synchronization either works or it doesn't. If it works people pick up your code and make use of it. If it doesn't work, well....

    "Marketable" OS projects are ones like JBoss and MySQL that have an element of complexity that requires a skilled professional. Not to belittle the work you are doing, I'm sure it was no small task for you to develop, but as it stand now, the binaires and some Javadoc API and most Java hackers could
  • I have been wondering about it as well, and I have talked to a few colleagues in various companies about it. One solution to the sponsorship problem might be to let a comany get your code with BSD style license, though it is easier said than done, considering so many people contribute to any given project. But I am sure that most of them will agree if they know that they will get moeny in return to carry on the project. The biggest problem corporations have is with so called viral nature of GPL, in my perso
  • Non Profit (Score:2, Interesting)

    by Hoch ( 603322 )
    I think that a non-profit organization that has the specific goal of raising money to support the Open Source community would do a great service. It would collect money and pay for expenses of certain projects. Companies could donate money and get tax write-offs for it. The non-profit could also allow companies to earmark a certain percentage of the funds to go to a certain project. If the company wants to switch entirely to open source, they could donate to the project(s) they need the most for the swi
  • by flacco ( 324089 ) on Tuesday July 15, 2003 @03:23AM (#6440584)
    A considerable barrier to funding by individuals is the notion that they're throwing their money away if a lot of other people don't contribute too. A reliable escrow system would help a lot with this.
    1. The escrow balance provides a clear marker as to where the donations are, and can have a positive effect on contributions. Consider the Blender situation.
    2. Contributors can give what they think it's worth to them to have a project (or project milestone) completed, without doing a calculus as to how their donation fits into the overall picture of getting work done.
    3. Contributors are assured that they will receive their cash back from the escrow account if the project is not completed.
    4. Developers are relieved from the burden of managing contributions
    5. Talented developers in developing countries with a spotty track record wrt respect for contract law are not impeded by this reputaton.
    6. Developers see a concrete pile of cash in an escrow account just waiting for them if they complete the project. There's no ambiguity about getting paid or not.
    Funding for Open Source projects is a very interesting subject, IMO. As Free/Open Source software continues its inexorable march into the mainstream, I think it will be crucial to find GRASS-ROOTS methods of funding so that development is not overly influenced by corporate interests and "IP" issues.
  • by Alkarismi ( 48631 ) on Tuesday July 15, 2003 @05:53AM (#6440957) Homepage
    Crossing the chasm, whilst it's intended audience is proprietory IT firms, makes the point that consultancy is often *the* cash generator in the early market.

    A viable Open Source project will almost *always* require consultancy at the firms who choose to use it. If there's a better marriage between the commercial sector and Open Source projects I couldn't think of it. The challenge is to make sure there are 'no strings' and that each side thinks the share is fair. It strikes me that the 'best' Open Source projects are alread doing this (think MySQL, apache, etc).

    As a further example, the company I work for sets aside a percentage of its turnover for project funding, our most recent being joining the FSF corporate sponsor programme (try and encourage your own companies to do this - they need waaaaaaaaaaay more than they've picked up so far - companies who use Open Souce *should* fund it!).

    Implementors in the 'trenches' at Open Souce 'early adopters' should make the ideal funding partners for coders who, let's face it, made all this possible in the first place...

    Just my £0.02
  • I posted another comment about this just the other day [slashdot.org]. Then, the topic was mainly creating a cashflow to avoid further DMCAing.

    I think we should write an application that people can use to get an idea of what applications they use. A program that tracks what is most important to them. Then, payment information follows each application, and each month, a list is brought up to allow the user to select who he wants to send money to. A click or two, and the money is on the way to the developer.

    The trick is

  • Sell documentation (Score:2, Interesting)

    by Anonymous Coward
    Just write and sell documentation and you'll make good money for the project. If you don't know how to do it, ask these guys [devguide.net].
  • Quality Assurance (Score:2, Insightful)

    by $criptah ( 467422 )
    I've been a long time Open Source fan and I have noticed one trend that the movement lacked and still continues to lack on a major scale (although its improving); that is quality assurance. There are many great ideas and excellent programs that I would use, like KOffice, unfortunately it seems that there are very little resources invested in quality assurance. As far as I know, most of the Open Source projects rely on user who submit bug notifications; then these bugs are fixed in future realeases. What abo
  • Come on, we all know that the answer to this question is: ????

    You're welcome.

  • If a company contributes software to open source there should be a tax break. This will encourage companies to donate products they plan to withdraw as well as fund people in the company to work on open source.
  • Sometimes, corporations will fund development for itches they need scratched. For instance, I've done a lot of work on Python Milter [bmsi.com] and Python Dspam [bmsi.com] during work hours because our customers are screaming from the irritation of Spam and Email Viruses (although they won't listen to our recommendation not to use OutHouse, I mean OutLook).

    These are problems they would not wish on their fiercest competitors, so there is no desire to keep it proprietary. In general, when a company's primary business is not co

  • It was only a few weeks ago, that the linux router project [linuxrouter.org] died through lack of funding - it was reported here.
    Try not to find yourself in that hole.
  • ... is like winning a lottery. There's no easy way to do this.

    My company has released on Sourceforge a very nice piece of software for managing projects called Outreach Project Tool [sourceforge.net], which is used by hundreds of companies around the world. Not one of them has even sent a postcard we requested to acknowledge their use, let alone any money.

    Today, we also released another great tool for documenting IT infrastructure called DMO [sourceforge.net], and we don't expect to earn a single Euro in revenue from it, despite spending

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