Open Source Business Model
December 27, 2005 by Jeff Purcell
Lately I’ve been playing with the idea of developing some sort of open source software. As I near graduation, I’m trying to find ways to add to my awkwardly thin resumé. I feel a well planned open source project might be just the addition to my resumé that could land me a job in the already flooded php developer market.
After turning the open source idea over in my head for a few days, I began to wonder if done properly, could said project turn into something mildly lucrative? Obviously whole companies base their entire business model around the development of open source and free software. But how do these companies stay in the black? Surely they don’t base their business models around their Paypal donate buttons, do they? What are some other ways that open source developers and entrepeneurs can monetize an already free product?
Just for sh*ts and giggles, let’s say I’ve created a “canned” shopping cart website much like osCommerce. I’ve compiled a list of ways that such a product could actually turn a profit.
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Hosting Services
Hosting services plus installation of your product would be an excellent means for income. Especially for those less than web-savvy. -
Offering a Pro Version
Offering more advanced features for a nominal fee seems to be a growing trend among smaller open source projects lately. -
Paid Layout Customization
By providing custom color schemes or custom layouts for individual customers willing to pay, you can turn a profit from just altering a stylesheet. -
Prepackaged Themes
Prepacked themes can be a great addon for your open source software and allows for easier customization for your customers. -
Paypal Donations
You’d be surprised what people will give if they enjoy your software!
I believe these are all very realistic options for monetizing your open source software while still providing your main software for free.
- Some related articles I came across during my research:
- WordPress.com business model
- An open source business model
- Examining some pseudo-economic arguments about Open Source
Tags: Open Source, shopping cart, entrepeneur, money




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