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

Transcript

1. RAILS WORLD AMSTERDAM 2023 IRINA NAZAROVA 
 CEO @ Evil Martians WILDEST DREAMS OF MAKING PROFIT ON OPEN SOURCE
2. RAILS WORLD AMSTERDAM 2023 2 OPEN SOURCE
3. RAILS WORLD AMSTERDAM 2023 3 Web technologies dominate software development...
4. RAILS WORLD AMSTERDAM 2023 4 Web technologies dominate software development... ...thanks to open source
5. RAILS WORLD AMSTERDAM 2023 5
6. RAILS WORLD AMSTERDAM 2023 6 MAINTAINER’S GUIDE TO COMMERCIAL OPEN SOURCE
7. 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
8. RAILS WORLD AMSTERDAM 2023 8 PRODUCT CONSULTING FOR DEV TOOLS
9. RAILS WORLD AMSTERDAM 2023 9 DOES OPEN SOURCE BRING YOU BUSINESS? PRODUCT CONSULTING FOR DEV TOOLS
10. RAILS WORLD AMSTERDAM 2023 BUT IT’S MORE THAN THAT
11. 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
12. 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.
13. 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
14. RAILS WORLD AMSTERDAM 2023 14 Ideal world
15. RAILS WORLD AMSTERDAM 2023 15
16. RAILS WORLD AMSTERDAM 2023 16 Agency
17. RAILS WORLD AMSTERDAM 2023 17 Agency a thing or person that acts to produce a particular result —
18. RAILS WORLD AMSTERDAM 2023 18 COMMERCIALIZE! 🍏 🍍 📢 👀 㱺 㱺 㱺
19. RAILS WORLD AMSTERDAM 2023 19 But what if it won’t work out?
20. RAILS WORLD AMSTERDAM 2023 20
21. RAILS WORLD AMSTERDAM 2023 21 But what if she had…
22. RAILS WORLD AMSTERDAM 2023 22
23. RAILS WORLD AMSTERDAM 2023 23 “Only 3 simple steps, darling…”
24. RAILS WORLD AMSTERDAM 2023 24 STEP 1 CHOOSE A BUSINESS MODEL
25. RAILS WORLD AMSTERDAM 2023 25 HOW TO EARN ON OPEN SOURCE 1. Cloud subscription, or SaaS 2. Dual licensing, on-premise 3. Consulting contracts
26. 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)
27. 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
28. 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
29. 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
30. 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
31. 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
32. RAILS WORLD AMSTERDAM 2023 32 LET’S SIZE IT
33. RAILS WORLD AMSTERDAM 2023 33 👩💻🧑💻👨💻👨💻 👩💻👩💻🧑💻🧑💻 👨💻👩💻👩💻👩💻 🪙 🍰 🎂 × = ⇒ THEY SPEND # POTENTIAL CLIENTS TAM REVENUE LET’S SIZE IT
34. RAILS WORLD AMSTERDAM 2023 34 We’re all set!
35. 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
36. 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.
37. 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!
38. RAILS WORLD AMSTERDAM 2023 38 HTTPS://DOCS.GOOGLE.COM/SPREADSHEETS/D/1 - F7_SCCQSZZH4TPYGYQQGJOUFAHYGKORPFHABXXSN9E/EDIT#GID = 0 BOOTSTRAPPING CAN TAKE YOU A LONG WAY…
39. 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. ✍ 💼
40. RAILS WORLD AMSTERDAM 2023 40 TEST YOUR PRODUCT HYPOTHESIS STEP 2
41. RAILS WORLD AMSTERDAM 2023 41 BUILD AN MVP MVP is a tool to validate a product hypothesis quickly without an upfront investment. 👩🎤 🍏 👩🔬
42. RAILS WORLD AMSTERDAM 2023 42 〔👩🎤 🍏 👩🔬〕 BUILD AN MVP MVP is a tool to validate a product hypothesis quickly without an upfront investment.
43. 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
44. RAILS WORLD AMSTERDAM 2023 44 NEXT STEP: PAID PRODUCT 👩🎤❗ 🤚🍏🤚 💸
45. RAILS WORLD AMSTERDAM 2023 45 NEXT STEP: PAID PRODUCT 〔👩🎤❗ 🤚🍏🤚 💸〕
46. RAILS WORLD AMSTERDAM 2023 46 MAKE PROFIT STEP 3
47. RAILS WORLD AMSTERDAM 2023 47 LEVERAGE USAGE - BASED PRICING – NOT ONLY IN SAAS
48. RAILS WORLD AMSTERDAM 2023 48 PRICE P* Q* PRICE DISCRIMINATION THAT IS STILL LEGAL Flat price REVENUE DEMAND CURVE # CLIENTS
49. 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
50. RAILS WORLD AMSTERDAM 2023 50 😱 YOU CAN CHARGE FOR OPEN SOURCE FEATURES
51. RAILS WORLD AMSTERDAM 2023 51 👩🚒 CONSULTING CAN BE COMPLEMENTARY TO BUILDING A PRODUCT
52. RAILS WORLD AMSTERDAM 2023 52 NEW DOCUMENTATION: GUIDES 🦮
53. RAILS WORLD AMSTERDAM 2023 53 🗣📝 TALK ABOUT YOUR PRODUCT AND YOUR WORK
54. RAILS WORLD AMSTERDAM 2023 54 DID YOU SUCCEED?
55. RAILS WORLD AMSTERDAM 2023 55
56. RAILS WORLD AMSTERDAM 2023 56 KEEP GOING 🏃
57. RAILS WORLD AMSTERDAM 2023 57 Fall in love with your audience NOT YOUR PRODUCT
58. RAILS WORLD AMSTERDAM 2023 58
59. RAILS WORLD AMSTERDAM 2023 59 ARE YOUR DREAMS WILD ENOUGH?
60. 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