https://techcrunch.com/2024/09/30/y-combinator-is-being-crit...
Most common these days is to make the paid product be a hosted version of the open source software, but there are other ways too. Experienced founders emphasize to new startups how important it is to get this right and to keep your open source community happy.
No one I've heard is treating open source like a bait and switch; quite the opposite. What is sought is a win-win where each component (open source and paid) does better because of the other.
I think there’s a general misconception out there that open sourcing will cannibalize your hosted product business if you make it too easy to run. But in practice, there’s not a lot of overlap between people who want to self-host and people who want cloud. Most people who want cloud still want it even if they can self-host with a single command.