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Wildest Dreams of Making Profit on Open Source–...

Wildest Dreams of Making Profit on Open Source–Rails World 2023, Irina Nazarova

Irina Nazarova

October 09, 2023
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  1. RAILS WORLD AMSTERDAM 2023 IRINA NAZAROVA 
 CEO @ Evil

    Martians WILDEST DREAMS OF MAKING PROFIT ON OPEN SOURCE
  2. RAILS WORLD AMSTERDAM 2023 IRINA NAZAROVA CEO @ Evil Martians,

    product consulting for developer tools Co-founder @ AnyCable 7 2x startup founder Research analyst @ J.P. Morgan C++, Ruby on Rails engineer
  3. RAILS WORLD AMSTERDAM 2023 9 DOES OPEN SOURCE BRING YOU

    BUSINESS? PRODUCT CONSULTING FOR DEV TOOLS
  4. RAILS WORLD AMSTERDAM 2023 Real-time server for Ruby, Rails, Hotwire

    that takes care of real-time connectivity, consistency and scaling 11 VLADIMIR DEMENTYEV 
 AUTHOR AND CO - FOUNDER USED BY Communication Collaboration GPS tracking Online events
  5. RAILS WORLD AMSTERDAM 2023 AnyCable is open source. AnyCable Pro

    is a paid on-premise product. Generates about $ 1M annual consulting revenue for Evil Martians.
  6. RAILS WORLD AMSTERDAM 2023 imgproxy is open source. imgproxy Pro

    is a paid on- premise version. imgproxy graduated Evil Martians, raised external funding and incorporated. USED BY Fastest on-the-fly image optimization server
  7. RAILS WORLD AMSTERDAM 2023 17 Agency a thing or person

    that acts to produce a particular result —
  8. RAILS WORLD AMSTERDAM 2023 25 HOW TO EARN ON OPEN

    SOURCE 1. Cloud subscription, or SaaS 2. Dual licensing, on-premise 3. Consulting contracts
  9. RAILS WORLD AMSTERDAM 2023 26 Elastic Redis Sentry Supabase Databricks

    HOW TO EARN ON OPEN SOURCE 1. Cloud subscription, or SaaS 2. Dual licensing, on-premise 3. Consulting contracts GitHub Treasure Data (FluentD)
  10. RAILS WORLD AMSTERDAM 2023 1. Cloud subscription, or SaaS 2.

    Dual licensing, on-premise 3. Consulting contracts HOW TO EARN ON OPEN SOURCE Sidekiq AnyCable Karafka BulletTrain Avo
  11. RAILS WORLD AMSTERDAM 2023 1. Cloud subscription, or SaaS 2.

    Dual licensing, on-premise 3. Consulting contracts 28 HOW TO EARN ON OPEN SOURCE GitLab Instructure (Canvas LMS) Rapid7 (Metasploit) Puppet Sidekiq AnyCable Karafka BulletTrain Avo
  12. RAILS WORLD AMSTERDAM 2023 1. Cloud subscription, or SaaS 2.

    Dual licensing, on-premise 3. Consulting contracts 29 HOW TO EARN ON OPEN SOURCE Red Hat Evil Martians
  13. RAILS WORLD AMSTERDAM 2023 30 1. Cloud subscription, or SaaS

    2. Dual licensing, on-premise 3. Consulting contracts HOW TO EARN ON OPEN SOURCE ❗Largest clients move off
  14. RAILS WORLD AMSTERDAM 2023 31 ❗Much lower conversions 1. Cloud

    subscription, or SaaS 2. Dual licensing, on-premise 3. Consulting contracts ❗Largest clients move off HOW TO EARN ON OPEN SOURCE
  15. RAILS WORLD AMSTERDAM 2023 35 WHICH MODEL TO CHOOSE? 1.

    Is Revenue < salaries for you and team? – Side/hobby project, to try and learn – Use open source for marketing or HR goals
  16. RAILS WORLD AMSTERDAM 2023 In order to raise, you need

    to test your hypothesis 36 2. Is Revenue > $1B in 5 – 10 years? – Large market. Great opportunity! – Competition with VC-backed companies – You have to raise venture capital too. WHICH MODEL TO CHOOSE? You will have to have both SaaS and on premise eventually. Question is, what to begin with.
  17. RAILS WORLD AMSTERDAM 2023 37 3. Is Revenue in between

    those two values? Or, can you focus on speci fi c smaller niche? – Bootstrap a business – Grow at your own pace WHICH MODEL TO CHOOSE? It can be either of the 3 models, including consulting. To decide which model works better, you need to test it!
  18. RAILS WORLD AMSTERDAM 2023 39 LET YOUR SKILLS TALK If

    you are good with content and marketing, go with bottom-up sales & SaaS. If you have many connections, start with top-down sales & on-premise. ✍ 💼
  19. RAILS WORLD AMSTERDAM 2023 41 BUILD AN MVP MVP is

    a tool to validate a product hypothesis quickly without an upfront investment. 👩🎤 🍏 👩🔬
  20. RAILS WORLD AMSTERDAM 2023 42 〔👩🎤 🍏 👩🔬〕 BUILD AN

    MVP MVP is a tool to validate a product hypothesis quickly without an upfront investment.
  21. RAILS WORLD AMSTERDAM 2023 43 👩🎤 🍏 👩🔬 20 people

    you know Figma prototype Meet them for co ff ee and give them your laptop Readers of a subreddit Landing built with Framer Record sessions with PostHog, track signups Attendees of a meetup Presentation Track signups and questions Emails of CTOs of speci fi c companies GitHub page Track signups and responses EXAMPLES
  22. RAILS WORLD AMSTERDAM 2023 48 PRICE P* Q* PRICE DISCRIMINATION

    THAT IS STILL LEGAL Flat price REVENUE DEMAND CURVE # CLIENTS
  23. RAILS WORLD AMSTERDAM 2023 49 PRICE P* Q* PRICE Flat

    price Usage-based licensing # CLIENTS # CLIENTS P5 P4 P3 P2 P1 REVENUE PRICE DISCRIMINATION THAT IS STILL LEGAL
  24. RAILS WORLD AMSTERDAM 2023 Slides: evilmartians.com/events Sign up for newsletter:

    evilmartians.com/chronicles anycable.substack.com Twitter: @evilmartians, @any_cable, @inazarova 60 THANK YOU SPECIAL THANKS TO MARTIANS, MILES AND MIDJOURNEY Please donate to razomforukraine.org