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There is a growing enthusiasm around open source startups these days.

Investors are backing OSS projects, and open source startups are gaining ground as serious players in tech. This is not about sharing code. It is about adopting a robust business strategy that creates real market impact.

But building a successful OSS project is trickier than it seems.

Any startup relying on open source needs a clear, focused approach.

The better the open source model is developed, the more difficult it might become to generate a significant and solid profit. Adam Jacob, in a recent talk at CNCF KubeCon NA, clarified how Fair Source might be the better alternative for some companies.

Whether you are committed to the open source model, or you prefer the fair source one, here are 6 tips to help you succeed.

1. Fully Commit to Your Open Source Project

Your OSS must be more than a side project.

To make it work, you need to fully commit – with your company’s money, time, and resources. A thriving OSS project demands regular investment in updates, robust developer support, and a clear, transparent roadmap.

Without this all-in commitment, it’s hard to succeed.

Focus on building early momentum, building a strong foundation for future commercial success. Your OSS project won’t generate revenue; treat it as a stepping stone in your long-term vision.

2. Build and Nurture Your Community

Community is central in both OSS and Fair Source approaches.

In open source models users feel a sense of ownership and pride in a project, they’re more likely to contribute and spread the word, naturally expanding your reach. For fair source companies, community members act as advocates. For example, they provide feedback, report bugs, and suggest new features that could meet the needs of both future fair source users and paying customers.

So, for startups leveraging open source, nurturing your community should be at the heart of your concerns. You can do it in a few different ways:

  • Build comprehensive developer resources and detailed documentation.
  • Establish channels where they can interact and find support and a sense of community.
  • Consider creating community management roles. They help build relationships, maintain high engagement, and provide a consistent supporting presence.

Remember that a vibrant, well-supported community doesn’t just keep your project alive – it’s a powerful engine for growth and innovation.

3. Carefully Define Your Commercial Boundaries

Neither OSS nor Fair Source products should threaten your commercial product.

It needs to create an appetite for your paying solution without cannibalizing it. You want it to provide enough value that it can stand on its own. But, at the same time, you don’t want it to provide so much value that people don’t see the need to pay for your commercial product.

It’s a fine balance that many get wrong.

To increase your chances of success, experiment with feature boundaries. Adjust what’s included in OSS versus your paid product to maintain the appeal of both without overlap.

Sysdig nailed this balance. They offered an open source version for monitoring a single server, allowing users to experience its full capabilities on a smaller scale. However to monitor multiple servers, users had to upgrade to the commercial product. This setup delivers clear value through OSS while encouraging users to move to the full solution.

4. Create a Seamless Referral Flow from Fair Source to Commercial

Your fair source and your commercial product should be interconnected.

Think of the fair source experience as the start of a journey that piques users’ interest while leaving them curious for more.

If users find the first valuable, they’re more likely to trust the commercial product. A positive, hassle-free experience in the fair source builds trust and encourages users to take the next step. This creates a smooth path from open source to paid offerings.

A well-designed referral flow makes the upgrade feel like a natural choice.

5. Show Your Project’s Scalability Potential

Investors love open source and fair source projects that can grow and scale.

To attract their attention, show that your project has strong community support and growth potential. Track key metrics like GitHub stars, active contributors, and user engagement. These numbers give a snapshot of your project’s popularity and its ability to keep growing.

A strong, engaged community signals demand and long-term potential, making your project more attractive to investors. The more people rally around your project, the stronger your case for long-term success.

Seeing proof of your project’s strength will make investors more likely to support your journey.

6. Keep a Clear Focus on Both Open Source and Commercial Goals

Open source is powerful for startups, but it can easily become a distraction.

It’s easy to pour time and resources into your OSS project while your commercial product takes a back seat—or vice versa. To stay on track, create a clear roadmap that aligns both sides of your business.

Make sure your open source and commercial goals support each other. Consequently, as your OSS grows, it naturally leads users toward the commercial product. Aim to balance resources, like developer time and funding, between the two to keep them both strong.

Setting clear priorities is key to achieving success with both your OSS and commercial products.

Conclusion: Open Source Startups Are More Powerful But Only When Done Right

With the right approach, open source can be a powerful way to bring your product to market.

There’s strong interest in the market for open source solutions, and with the right steps, you can tap into this demand. But keep in mind that timing and strategy matter. You need to do things in the right order, or your efforts might not pay off. They could even hurt your project’s potential!

When done well, open-source can help you build a loyal user base, attract investors, and turn your community into lasting customers. If you’re ready to bet on OSS but unsure where to start, Blu Estates can help you navigate the challenge.

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