How To Turn An Open Source Product Into A Commercial Business

Not so long ago, making money off open source projects seemed like a radical — and in some circles, even heretical — idea. Today, firms like MySQL and Sourcefire are reaping the benefits of building commercial businesses around an open source project. To be successful, there are several important decisions to make, the most basic of which are: 1) When is the right time to commercialize? and 2) How can you work with the community, both giving and taking? Next, decide what to sell, and to whom. Then, ask how you can successfully market your offering to both commercial entities and the open source community. Consider which license or licenses best meet your needs, and decide on a pricing model. Any firm selling an open source product needs to answer these questions at the beginning and then reconsider those answers as the company grows. Fortunately, companies that are just starting out can examine the paths blazed by those who came first, like Sourcefire, SugarCRM, and Tenable Network Security.