#open-source #business #business-model
Created at 141223
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#shower-thought
Last modified date: 141223
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# Open source business models cheatsheet
Here's an updated cheatsheet of different business models in open source software, now including examples:
| Business Model | Description | Examples |
| --- | --- | --- |
| **Open Core** | The core software is open source, but premium features, advanced functionalities, or enterprise-grade services are proprietary and paid for[^1^][^4^][^8^]. | GitLab, MongoDB[^4^] |
| **Professional Services** | Revenue is generated by offering support, consulting, and training services related to the open source software[^1^][^7^]. | Red Hat[^1^] |
| **Hosting** | The company provides a hosted version of the open source software, often as a cloud service, and charges for the hosting service[^1^][^4^][^6^]. | WordPress.com[^1^] |
| **Multi-Licensing** | The software is available under both open source and proprietary licenses. The proprietary license often includes additional features or services[^3^]. | MySQL[^3^] |
| **Marketplace** | The company creates a marketplace around the open source software where users can buy and sell services, add-ons, or applications[^7^]. | Docker[^7^] |
| **Donations/Patronage** | The open source project is funded by donations from users or sponsorships from organizations[^1^]. | Vue.js[^1^] |
| **Software as a Service (SaaS)** | The open source software is offered as a service, and customers pay for the service rather than the software itself[^1^][^4^]. | Supabase[^4^] |
| **Freemium** | The basic version of the software is free, but users can pay for a premium version that offers additional features or services[^5^]. | PostHog[^5^] |
Please note that these models are not mutually exclusive and many companies use a combination of these models to generate revenue[^4^].
[^1^]: https://en.wikipedia.org/wiki/Business_models_for_open-source_software
[^3^]: https://www.diva-portal.org/smash/get/diva2:1767854/FULLTEXT02
[^4^]: https://www.forbes.com/sites/glennsolomon/2020/09/15/monetizing-open-source-business-models-that-generate-billions/?sh=266cd06934fd
[^5^]: https://fourweekmba.com/open-source-business-model/
[^6^]: https://opensource.stackexchange.com/questions/12666/open-source-licenses-and-royalties
[^7^]: https://insights.blossomcap.com/successful-open-source-business-models-2709e831e38a
[^8^]: https://en.wikipedia.org/wiki/Open-core_model