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Open Source Monetization

Several months ago, I did a survey on DokuWiki Business Use and Open Source Monetization. I promised to release the results but then forgot about it. Time to finally hold my promise.

The survey got 83 responses and below I want to give you some of my thoughts about the data I found most interesting.

Please add your own thoughts as comments. You can download the whole data set as Open Office spreadsheet document: Survey Results.


Payment Provider Acceptance

When I did my reverse bounty experiment, some people complained about Paypal being the only option to chip in. So I was interested in the acceptance rate of various payment options.

I asked how likely one would use a certain provider on a scale from 5 (very likely or did so before) to 1 (never). Here are the average ratings for the 5 payment options I asked about:

Paypal seems still to be the most accepted choice. That gets even more clear if we transfer the data into a simpler scale. In the following charts, I dropped the middle answer and summed up “very likely” and “likely” to “yes” and put “probably not” and “never” in a single “no” category:


So I guess that if you want to be on the safe side, you should provide donation options via Paypal and bank transfer.

Company Donations

I was also curious about how companies think about Open Source donations.

When we remove the non-donors and just compare company versus private donations, we see that more than two thirds of donations come from the “little people”:

I did expect that, so I asked what the reasons are. Here is what people said:

So the main reason is still the mindset of companies or their managers. Expenses for buying software seem rarely to be questioned, but donating comparatively small amounts is out of question.

And even if the mindset would allow donations, company rules and tax systems seem to be another major road block. Which makes “Accounting Problems” number two on the list. Especially the need for invoices was mentioned often.

The third most often mentioned problem is the “Unclear use of money”. People seem to be more comfortable to donate when they know how the money will be used. “Buy me a beer” works better than “Donate for my projects”.

Bounties

The initial idea about the survey was born from my try to use a “reverse bounty” system for “selling” my sync plugin.

Looking at the data it seems that even normal bounties are widely unknown and rarely used to encourage the development of new features:

So it doesn't surprise that people are somewhat indifferent to my “reverse bounty” idea. The chart shows how likely someone would chip into a reverse bounty from 5 (very likely) to 1 (never).

Lessons learned

Donations for Open Source development are still in their infancy and I'm not sure they will ever become widespread enough to support the developers – eg. to let me quit my day job ;-).

There a few things to ease donation for companies. I already added a note on how to get an invoice at the DokuWiki donation page and will also add some info about inquiring for bank transfer details.

But without a change of mindset, company donations will stay an exception. If you think that should change, why not once a year send your manager a list of Open Source software you use in your company? List what it would have cost you to buy similar commercial software and add a link to the donation details of the project. Maybe it works.


Again, please let me know what you think about the topic and if you aggregated some other interesting insights from the data please share with us.


PS: All graphs were created with the GChart DokuWiki Plugin

Tags:
survey,
opensource,
monetization
Similar posts:
Posted on Monday, December the 21st 2009 (2 years ago).

Comments?

1
"Accounting Problems" is clearly the main problem from a company viewpoint. The goal of any company is to *make money*, and donating is strictly orthogonal with that.

Solution? Sell an official DokuWiki CD for $100 or $1000. It's perfectly ok for a company to *buy* tools.
2009-12-21 20:51:28
Joonas Pulakka
2
That seems so stupid, but if that's really what companies need maybe I'll do that.
2009-12-22 02:55:46
3
Well, now that I think about it, I don't know if selling CDs would be enough. Regardless, it could mark a crucial difference, no matter how trivial (or even "stupid") it is. The concept of *donating* is alien to 99% of companies out there - how to put that in bookkeeping, how do taxes go (how does it depend on the countries of the parties) etc. But the concept of *buying* is familiar: get the product, pay the bill, and go on.

There was an excellent discussion recently on funding the programming language Clojure: see http://groups.google.com/group … 5e98ce46b/
2009-12-22 12:11:03
Joonas Pulakka
4
Happy New Year Andreas!

First of course i take the opportunity to combine my wishes for all the best of luck in the next sun curriculum for you and your family with a hearty and big THANK YOU for your steady work of the past years. Dokuwiki has been the base of my personal knowledge documentation for over two years now.

Concerning the point of all the "thanks" on the investments of time and money in open source projects understandably being not enough, I'd like to point out the problems with donations in general from my personal point of view and, especially with the reverse bounty model, according to my experiences as a leader of a small company:

Personally I have to admit that I don't spend money on OSS projects not very often, in fact it had been only two times in the past ten years to individual developers of small tools. Maybe others will call me mean and stingy but in the same period of time I have contributed to about a dozen OSS projects with contributions of different size and value, but without being ever member of a core team or the owner of such a project. It was just giving back what i needed to fill a hole of missing funtionality to the community.

Being the responsible person for a company's general ledger it is - at least according to german tax regulations - simply impossible to spend an amount on something which is "still not there", as is the case with the reverse bounty model. With one major exception: Buying shares of a (startup) company in the hope a prosper development leading to a return of money by shares of profit. But if someone buys shares of a company which just had the incentive of developing good software without charging anybody for it, this will be regarded as a "hobby loss" during the next tax audit by the fiscal authorities - again: at least in Germany - leading to the CEO being held responsible for this expense with all personal consequences. Hence this is no option either.

Now for the construcive part: What about dual-licensing your software like how it is done by several other projects, e. g. the YAML CSS framework (http://yaml.de)? Wouldn't this put you in the position of receiving revenues for your work from commercially using parties while continueing the development as OSS? At least this would help companies to overcome the catch-22 of the reverse bounty model. Taking into account your revue results i must admit that it will be mostly small companies (like mine) which will be willing to pay, but hey: Wouldn't be a small start better than giving it up alltogehter?

Leaving you with these personal thoughts of mine i am hoping that you will find a way to continue the development of dokuwiki (not without a certain selfishness ;-) and to get all the material and emotional merits you deserve.

With kindest of regards from a former fellow citizen of your hometown.
2010-01-01 18:34:16
ofi
5
Irregardless of that I'm no big fan of dual licensing, it simply isn't possible for DokuWiki. I'm not the only author and thus not the only copyright holder. Contributions where given to me under a GPL license so I'm bound to GPL like everyone else.
2010-01-04 13:29:44
6
Great discussion Andi. I am a sole proprietor of a small web development company which I operate in my spare time. I made it my own company policy to donate to the three open source programs or tools which helped me the most during each year. I donated to Dokuwiki at the end of 2009 as part of this 'policy'. My company is small enough that my donation are also small, but I think this kind of policy is important, and people should encourage their managers on this.

I'm not sure how the accounting works... I just posted it as a software expense.

I also give back by contributing plugins, themes and my own OSS project so I think some combination of both of these approaches is in line with the OSS philosophy.

I'm sure that corporate/tax issues will evolve to make these types of payments easier to figure out - because OSS is gaining popularity - even governments are using it more and more.
2010-02-02 18:31:06
Sherri
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