| Three approaches come to mind: 1) Sell professional support This is how most open source software companies make money. This usually includes some horrendous subscription fee and guaranteed SLAs. I never quite understood, why this works. My only explanation is, that many customers are comfortable with this, because this is what they are used to from buying proprietary software. 2) Sell a hosted version This is classic SaaS. If you find a way to automate setup of instances of your software and offer this for an attractive price, this could appeal to people who shy away from the cost of running their own server and installing and maintaining the software. I firmly believe that SaaS and Open Source do not contradict each other, but I only know one example that seems to be successful: http://www.teambox.com 3) Open Core Sell a paid version of your software that has features not in the open source version. This is generally frowned upon by open source people, and rightfully so. At least you run the risk of destroying the healthy developer community you seem to have. In your case, I would gather that you have a huge advantage when it comes to choosing the right approach. If you know who owns the hundreds of sites that already run your software then you already know some of your potential customers. Talk to them and try to find out why they use your software, if they make any revenue of it, what their pain points are (if any) and what they would be willing to pay for. |
I think Jonathan Schwartz had a decent answer to this question. It was basically that there are two types of customers, the kind with more time than money, and the kind with more money than time. If your company stands to lose thousands of dollars for an hour of downtime, minutes, isn't paying a subscription fee with 24 hour support worth it, even if it's almost never utilized?
Another way to make money is to backport bug fixes to previous versions that customers are on. With companies who have more time than money, this won't bother them, they can compile their own versions and do their own merges of bug fixes. For companies making boatloads of cash, why waste developer effort doing this for a negligible fee?