What does it mean to “enable” marketing? If that’s the same level of marketing 
we get at the ASF already, then it’s dead in the water for most projects.

—
Matt Sicker

> On May 9, 2022, at 10:22, Jarek Potiuk <ja...@potiuk.com> wrote:
> 
> 
>> 
>> I think the non-profit charity aspect definitely would disqualify the ASF
> as being one of these Fiscal Hosts. But in general, it does sound like they
> could be something usable, just not using the ASF as Fiscal Host.
> 
> I am not sure to be honest. From at least looking at the description of
> what Fiscal Host is, this is mainly about "legal entity", "being able to
> issue invoices" and that's about it.
> 
> Even if you look at the fiscal hosts that the open-collective manages, they
> have a 501(C) US-Based charity foundation as one of the fiscal hosts:
> https://opencollective.com/foundation  - which I think is the same regime
> as the ASF.
> 
> See:
> https://docs.opencollective.com/help/fiscal-hosts/fiscal-hosts
> 
>> On Mon, May 9, 2022 at 5:11 PM Christofer Dutz <christofer.d...@c-ware.de>
>> wrote:
>> 
>> Hi Roman and Jarek,
>> 
>> well the reason I was proposing something new was that I did try to
>> participate with some of the existing initiatives like Tidelift, but they
>> showed a great amount of disinterest. It seems as if only the projects big
>> enough are considered worthy of being supported. The entity I proposed
>> should be available for any project, no matter what size it is.
>> 
>> Yes, it could just be a new company and wouldn't need to have the blessing
>> of the ASF, but then there would be yet another Support Inc. Effectively
>> all splitting the cake up into smaller pieces hereby keeping each one from
>> not reaching the breaking point in which things would start running on
>> their own.
>> 
>> That's why I thought: Something with explicit ties to the ASF could
>> benefit from being considered the “official” way to get support or at least
>> the way the ASF considers to be absolutely in-line with its policies and
>> might help reaching the critical mass needed to work.
>> 
>> I mean with most companies in the Industry, they only work with preferred
>> vendors and they have a limited amount of “slots” on that list. So, they
>> usually have business relationships with the bigger companies. If we don’t
>> have a good open-source Support Inc. able to fill one of these slots, it
>> doesn’t matter how many there are.
>> 
>> In general, I’d be happy, if an existing company could provide this
>> service, but as I mentioned, my condition for accepting this as a solution
>> would be that every project wanting to do so, could do their business
>> though them. Tidelift has proven to only select the filet parts, which I
>> consider inacceptable for being considered as being a solution to this
>> problem.
>> 
>> And to what Jarek said. I think the non-profit charity aspect definitely
>> would disqualify the ASF as being one of these Fiscal Hosts. But in
>> general, it does sound like they could be something usable, just not using
>> the ASF as Fiscal Host.
>> 
>> Chris
>> 
>> 
>> 
>> 
>> -----Original Message-----
>> From: Jarek Potiuk <ja...@potiuk.com>
>> Sent: Montag, 9. Mai 2022 11:49
>> To: dev@community.apache.org
>> Subject: Re: [DISCUSS] Crazy or good Idea?
>> 
>> Very good points Roman. I think it's great to think about it with the
>> building business "mindset" - this is the only way it can actually succeed.
>> But maybe we do not have to go this way.
>> The #1 seems much more attractive and there are other options.
>> 
>> I think Open Collective is as close as it can be to the 'Apache Way" when
>> it comes to enablers and the economy of scale is already there I think.
>> 
>> I've been participating with several campaigns now through them - they
>> seem to be they don't even want to "own the relation" between the
>> "collective individuals" and "sponsors".
>> 
>> They seem to be pretty much 100% of what I consider as "enabler" -
>> https://opencollective.com/how-it-works:
>> 
>> * Managing payments and admin
>> * enabling easy marketing and promotion
>> * basically enabling a group of people to establish effective, repeating
>> campaigns and building long-lasting relationships generally focused on
>> "doing good".
>> * the "collectives" decide themselves on the scope and conditions of the
>> campaign they run - but eventually it's all based on the reputation of the
>> people who run the collective to be trusted by the  supporters.
>> * you can organize your "collective" there without legally incorporating
>> it (by a group of individuals) and get anyone to support it.
>> 
>> I think the only remaining question is - how feasible and attractive such
>> "collective" might be for Sponsoring companies.
>> 
>> And there is an interesting option that might be actually a good response
>> to it and a way how such a collective **might** get reputation.
>> The Apache Software Foundation **could** become a "Fiscal Host" there
>> https://docs.opencollective.com/help/fiscal-hosts/fiscal-hosts - i.e. an
>> entity that holds the funds and manages the legal/bank account but it is
>> not involved in any way with the contracts and decisions of the
>> "collective".
>> 
>> A fiscal host is a legal company or individual who holds a Collective’s
>> funds in their bank account and can generate invoices and receipts for
>> supporters and sponsors. You can think of a fiscal host as an umbrella
>> organization for the Collectives in it.
>> 
>> I think such "Fiscal Host" is precisely the "missing" link we did not have
>> so far. Of course it needs to be checked from the legal side - what is the
>> responsibility and whether it is in-line with the ASF bylaws and mission,
>> but seems like becoming "Fiscal Host" in open collective is precisely what
>> the ASF could do. And then it gets even better, because such Fiscal Host
>> might host mutliple collectives:
>> - one per PMC for example - why not
>> -  "Security at the ASF" - for multiple projects
>> 
>> And many others. The nice thing there is that IF the ASF will not charge
>> the collectives, OpenCollective does not charge their 15% cut. And any
>> collective can "apply" to be hosted by a fiscal host. I am not sure what
>> are the rules and policies there, but I believe the collectives have to be
>> "approved" by the ASF host. And this is as close to "endorsement" without
>> actually a legal responsibility as it can be. The "sponsors" would deal
>> with the ASF that would issue the invoices, while the "business
>> relationship" of Sponsor will be with the collective organizers.
>> 
>> This really sounds rather cool if we could make ASF become such a Fiscal
>> Host.
>> 
>> Few claims they do:
>> 
>> * "Unlike other crowdfunding platforms, Open Collective is designed for
>> ongoing collaborations. That means your funding and community of support
>> doesn’t disappear after a single campaign, or if the initial organizers
>> move on.
>> * "Our code is fully transparent and open source, just like our budget.
>> You own your data: we’ll never sell it or lock you in."
>> * "Open Collective uniquely combines a powerful tech platform with fiscal
>> hosting, enabling Collectives to raise and spend money without legally
>> incorporating, worrying about taxes, or opening a bank account."
>> 
>> J.
>> 
>> On Mon, May 9, 2022 at 11:16 AM Roman Shaposhnik <ro...@shaposhnik.org>
>> wrote:
>> 
>>> Chris, thanks for sort of reviving the old thread I had before the
>>> war: I'm slowly coming back to my more regular Open Source life from
>>> all the craziness of the past two months. Because of that, there's not
>>> much to report back -- but I will share a few points and comment on a
>>> few of yours. Hope this will help move things along.
>>> 
>>> On Wed, Apr 20, 2022 at 3:11 PM Christofer Dutz
>>> <christofer.d...@c-ware.de> wrote:
>>>> 
>>>> Hi all,
>>>> 
>>>> now that the Aprils Fool Joke has worn off a bit, I think I can post
>>> this here. I at first suggested this in the board list before April
>>> 1st, as I wanted to make sure this hasn’t been wiped off the table as
>>> a silly idea before.
>>>> 
>>>> Turns out that I didn’t get a single “silly idea” response.
>>>> 
>>>> As you all might know I have been working on finding ways to finance
>>>> my
>>> work on open-source, but in an open-source way that others can also
>>> profit from what I might find out.
>>>> 
>>>> There are some projects that managed to form or attract companies to
>>> grow around them. These usually don’t have problems finding funds to
>>> finance further development.
>>>> However, we also have a large number of projects that are not as
>>>> big, or
>>> a large number of people working on our projects, but don’t work for
>>> those companies.
>>>> 
>>>> So, these people are generally relying on finding contracts themselves.
>>> This usually is problematic as many larger companies don’t do business
>>> with individuals.
>>>> Also is it often tricky to get the legal documents and contracts
>>>> right
>>> and then not even talking about how long payments usually take.
>>>> 
>>>> Another thing is that the ASF is a non-profit organization and
>>>> therefore
>>> it’s challenging to advertise commercial offerings around Apache
>> projects.
>>>> 
>>>> As an example: One of the things I found out with my crowd-funding
>>> experiment is that this doesn’t work. Admittedly I wasn’t expecting it
>>> to work. Companies just can’t donate large amounts of money without
>>> any assurances. But I did learn one thing: My crowd-funding experiment
>>> was in a way the most successful thing I did.
>>>> 
>>>> The thing was, that I listed up things that could be on the roadmap
>>>> and
>>> I added a price-tag to them. This is one thing an Apache project just
>>> couldn’t do. So even if I didn’t get a single cent in donations for my
>>> work, I was approached by multiple companies willing to finance
>>> individual campaigns, but with a normal consulting contract.
>>>> 
>>>> Now there are also companies like Tidelift, that want to close this
>> gap.
>>> However, we are still a bit unsure how to align the interest of that
>>> company with the values of the ASF. And there’s the fact that not
>>> everyone is able to profit from Tidelift. I for example tried reaching
>>> out to them several times for offering commercial PLC4X support, but
>>> the only responses I got, were people wanting to discuss how my
>>> business could profit from using more open-source ;-) So for me
>>> Tidelift is not an option as not everyone can use it.
>>>> 
>>>> Now let me get to my idea:
>>>> What If there was a separate legal entity closely related to the ASF
>>> (Let’s call it “Support Inc.” for now). I would even propose that the
>>> oversight entity for Support Inc. should be the ASF board. This would
>>> assure the company is perfectly in-line with the ASF and its values.
>>> 
>>> First of all, I 100% agree with Sam -- there's absolutely 0 reason
>>> that I see these two entities should have (structurally!) any more
>>> ties than ASF and let's say Cloudera. If you disagree on that point
>>> strongly -- now would be a good time to list all your reasons for why.
>>> 
>>> Back to building an independent business: my hypothesis back when I
>>> started the Tidelift thread is that we basically have two choices:
>>>  1. piggy back off of somebody who is already doing a similar kind of
>>> a business (and convince them to tweak it to be fully aligned with
>>> ASF's vision)
>>>  2. have a brand new business
>>> 
>>> This thread of yours seem to be focused on #2 so I'll stay with that
>>> (and will comment on #1 in a separate thread).
>>> 
>>> I'll start with saying that I've been talking to a LOT of my VC and
>>> OSS Foundations friends about #2 lately and the consensus seems to be
>>> that it is all about the economics of bootstrapping this kind of a
>>> business. The economics simply doesn't seem to work out (at least not
>>> in the US market) until you hit a certain number of customers AND
>>> committers in what, effectively, can be described as a marketplace. We
>>> can debated at what # of both of these you can hope to be at least
>>> somewhat revenue neutral, but it is pretty clear that the numbers are
>>> significant. Effectively, you need seed money.
>>> 
>>> This kind of seed money can either come from (please add to the list
>>> if I missed anything):
>>>    1. large Co's (FANG, etc.)
>>>    2. traditional VCs
>>>    3. non-traditional VCs
>>> 
>>> #1 I am not hopeful -- and if there's anyone on this list who can help
>>> move a needle in that direction I'd love to hear about that
>>> 
>>> #2 the feedback universally is "you're proposing to build a
>>> marketplace, there's a few already (e.g. Tidelif), please explain why
>>> yours will be any better/different/etc. -- if you can't at least go
>>> talk to existing ones and try to join forces"
>>> 
>>> #3 (this could be something as crazy as Elon Musk seeding it btw) is
>>> where I'm focusing right now (plus a bit of "go talk to them" from #2)
>>> 
>>> At any rate -- until there's a concrete proposal about where this kind
>>> of money can come from -- I don't think we will be making any
>>> progress.
>>> 
>>> But suppose we (and by "we" here I mean a group of individuals in the
>>> ASF who would want to step up as founders of something like this) did
>>> get some money -- we will have to have some rules of engagement with
>>> the ASF.
>>> 
>>> That seems to be the rest of your points:
>>> 
>>>> Individuals could sign up on Support Inc’s website for providing
>>> commercial services around Apache projects. These services could be
>>> Consulting, Feature development, Training, Commercial Support.
>>>> On this site a user could also add possible feature-development
>>> campaigns with a price-tag attached, just like I did on my website.
>>>> 
>>>> If a company wants to finance a feature, get support, consulting, or
>>> training around an Apache project, this would be the well-known
>>> website somebody would go to first.
>>>> 
>>>> Support Inc. would provide the contracts
>>> 
>>> Obvious point, but this is exactly where the liability starts and it
>>> needs to be managed (for which seed $$$ is required).
>>> 
>>>> and therefore the individual wouldn’t have to (I usually spent
>>> 2000-4000€/year on legal advice for stuff like that).
>>> 
>>> Yup. The economy of scale will obviously help, but not until we hit
>>> 100s of participants in our marketplace.
>>> 
>>>> Also, would Support Inc. be a bigger company the customer would be
>>>> doing
>>> business with, which would probably ease the problem of getting into
>>> the companies with Chris Inc.
>>> 
>>> Business development/marketing for Support Inc. will also require seed.
>>> 
>>>> The contracts would be between the Support Inc. and the customer,
>>>> and
>>> the customer would pay to Support Inc. The developer would have a
>>> contract with Support Inc. and be paid from this but give Support Inc.
>>> a certain percentage of the contact to cover its expenses (But in
>>> contrast to other pure for-profit companies, this cut would be a lot
>> less than usual).
>>> 
>>> Again -- typical marketplace mechanics -- all great but (cue tons of
>>> MBA articles on Uber, etc.) requires "buying" at least one end of it
>>> (typically with VC money) first.
>>> 
>>>> Now a developer could probably choose from different models, where
>>>> he
>>> gets paid instantly (but then give Support Inc. a bigger cut of the
>>> profits) or wait for the customer to pay.
>>>> The services the new company would provide, would be taking care of
>>>> the
>>> payments, the legal issues and provide the infrastructure for finding
>>> commercial support offerings.
>>>> And if people know this is something integrated into the general
>>> open-source ecosystem, I assume people would probably try less to
>>> screw with as they know it might backfire PR-wise, just like dragging
>>> the ASF to court wouldn’t be the smartest thing to do.
>>>> 
>>>> If the company earns money, it could become a sponsor of the ASF.
>>>> 
>>>> What do you think?
>>>> 
>>>> I hope you’re now not going to point at me laughing because I like
>>>> the
>>> idea.
>>> 
>>> I think:
>>>  0. I am *really* excited about this -- to a point where I'd love to
>>> be one of the founder's in a business like that, but we need at least
>>> a few more
>>>  1. I DO NOT think it is viable as an "organic growth" type of a
>>> business -- hence it'll required seed
>>> 
>>> Putting both of these together -- for now I'll focus on trying to
>>> finding an existing marketplace we can mold to our needs. I'm still
>>> bullish on Tidelift, but I need to re-start a few discussions with
>>> them on particulars.
>>> 
>>> Thanks,
>>> Roman.
>>> 
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>> 

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