On 09/18/2014 02:56 PM, Jonathan Ben Avraham wrote:
On Thu, 18 Sep 2014, tzahi ml wrote:

Date: Thu, 18 Sep 2014 14:15:40 +0300
From: tzahi ml <[email protected]>
To: "[email protected]" <[email protected]>
Subject: Question about how to make a living from open source

Hi All,I am in need of assistance.

I am currently working as a freelancer coding stuff in a company.
However, although I am making good living, this does not scale much (and promotion is out of the question :) ).

Anyway, I am looking for ways to scale.
A different way to say the same thing:
You can choose to be an employee in which case your earning potential is limited to what the current market value of someone with your skill set is. Doesn't "scale" but does provide you with benefits, a "guaranteed" salary and a corporate culture for advancement.

Or, you can choose to work for yourself. This have several variations:
1. Working as a contractor - Generally this allows you to charge a higher hourly rate. The down side is you have to provide your own benefits, accounting, etc. You also lose the stability of it being someone else's job to generate work for you. This also does not "scale" as you are limited to the number of hours a day you can work and the going market rate for the skill set you have.

2. Produce a product - Build a better mouse trap and sell it. This is not necessarily in line with the open source way of doing things. However, it is a common business plan. This has the potential to "scale" as you can develop the product once and sell it many times. You have the significant risk of startup and development costs and whether the product will be successful.

3. Provide a service - Along the lines of the idea you suggested of hosting complex solutions. This is similar to being a contractor but the focus is on marketing the service you provide rather you and your skill set. This only has the potential to scale by having other people (employees or contractors) provide the service in the name of your company. Your profit is the cost you can charge the client minus the cost of the worker actually doing the work. You also take on the responsibility of generating enough work to cover the costs of the worker(s) and yourself. With all of the joys that Yonatan described in his email.


--
David Suna
[email protected]


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