You can create an open-source app and reap the benefits of it ... and still make money by:
- using the OSS to power, sell, etc a closed source application
Anybody can come download my shopping cart any time they want. It still earned me a few hundred dollars this week.
See also Rails (open source framework powers immensely profitable closed source applications), etc.
It's been proven that you can create a profitable business by creating open-source/free software and building a business on top of that. Same goes for SaaS apps that have free plans.
Take a look at the article on Zimbra that was just posted. 40 million paid email boxes. Yet, there is an open-source version of Zimbra's software suite. Similar things going on for places like RedHat, MySQL, Google Apps, SugarCRM, etc.
You can create an open-source app and reap the benefits of it ... and still make money by:
- selling premium versions
- selling support
- selling hosting with per-seat licensing
- selling add-ons and custom development services