Here is the open source business model (yes, open source isn’t a business model. But we say that all the time, so.. whatever). Make something great. Turn it into a product that only you can sell (by packaging it up, branding it, selling it).
Collaborate with anyone who get value from the software on the software. Allow others to make money by *also* creating products if they so choose.
Under no circumstances should you give up the upstream control. Either by giving it away, or by refusing to play well with others.
Do not give your product away for free. You can decide to allow people to use it for a while, or even maybe forever, but they always need to give you something. Even if it’s just a lead.
You sell product, not software. The software belongs to the community that’s building it. Your product? That belongs to you.
Every other “model” we can choose is a less good variation on the theme. Open core? Productize only around it. Foundation control? Productize only around it, but with more help (hopefully).
In both those cases, if you are the originator of the software - you’re likely better off being in control of the upstream, and selling the entire value of the software in your product, rather than only a strictly less useful “up sell”
Value flows to the upstream, you see. So you have to be the source of things, even if you’re collaborating. If you aren’t? Well, make a new mid-stream (looking at you, OpenShift) and productize *that*.
You get all the benefits of open source community and network effects, and all the benefits of being a proprietary software company.
Reasons not to do this: the softwares is only valuable as a service. The software is revolutionary. Maybe there are more?
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