Here's what I learned when doing this research for Meteor.
* You can sell training, but it's low-margin. If that's all you do, it probably ends up looking more like a consulting business, because you have to recruit armies of teachers if you want to scale up the business.
* You might think you can sell support, but it's hard. There's a catch-22. If your product is good enough that people want to use it, it's probably good enough that they don't use their support incidents and end up not wanting to renew their support contracts.
* You can sell some kind of management software or application server that only big companies need. This has been a sweet spot for some other projects. Developers at small companies don't have any money, and developers at large companies don't have any budgetary authority. But, the operations teams at larger companies have a budget, and if you have an offering that's useful to them, they're able to pay what it's worth.
* You can sell long term maintenance of other people's software. This is the Red Hat model. They put their LTS stamp of approval on a collection of packages, and guarantee that those packages will be maintained for N years. People will pay for this. The investors I talked to seemed wary about this model. "Yeah, Red Hat got to $1B of revenue, good for them, but man, it took a long time."
* Platform-as-a-service is harder than it looks. Small customers will pay incredibly huge markups. But that's only if you look at it on a percentage basis, rather than in terms of absolute dollars. When someone gets big enough to be paying you "real money," they tend to leave your PaaS, either because it's too expensive (it becomes financially reasonable to pull the function in-house) or because you don't give them enough control or security.
* If you make your software GPL, you can extract a few million bucks from big companies that can't use any GPL software, which sometimes happens for complicated reasons involving, eg, patent cross-licensing deals. If your software is truly universal and something that every developer must have, they will write you big checks for GPL exceptions. But these are one-off deals and you can't really build a business on them.
* You can sell training, but it's low-margin. If that's all you do, it probably ends up looking more like a consulting business, because you have to recruit armies of teachers if you want to scale up the business.
* You might think you can sell support, but it's hard. There's a catch-22. If your product is good enough that people want to use it, it's probably good enough that they don't use their support incidents and end up not wanting to renew their support contracts.
* You can sell some kind of management software or application server that only big companies need. This has been a sweet spot for some other projects. Developers at small companies don't have any money, and developers at large companies don't have any budgetary authority. But, the operations teams at larger companies have a budget, and if you have an offering that's useful to them, they're able to pay what it's worth.
* You can sell long term maintenance of other people's software. This is the Red Hat model. They put their LTS stamp of approval on a collection of packages, and guarantee that those packages will be maintained for N years. People will pay for this. The investors I talked to seemed wary about this model. "Yeah, Red Hat got to $1B of revenue, good for them, but man, it took a long time."
* Platform-as-a-service is harder than it looks. Small customers will pay incredibly huge markups. But that's only if you look at it on a percentage basis, rather than in terms of absolute dollars. When someone gets big enough to be paying you "real money," they tend to leave your PaaS, either because it's too expensive (it becomes financially reasonable to pull the function in-house) or because you don't give them enough control or security.
* If you make your software GPL, you can extract a few million bucks from big companies that can't use any GPL software, which sometimes happens for complicated reasons involving, eg, patent cross-licensing deals. If your software is truly universal and something that every developer must have, they will write you big checks for GPL exceptions. But these are one-off deals and you can't really build a business on them.