Business models

From My Wiki

Business Models session

Go round of experiences ...

DT: consulting firm that does work with nonprofits Becky: Suites of open source tools - requests for translation Mikael: open source project - consulting Tomas: translations to sell books

Funding to write material in one language - not expensive to publish a high quality book open and on the web - translation was done for free - because it was for their business later. They have business models for doing the translation. Mix of funder paid translation and other.

Two ways of looking at it - whoever funds the original - it's an efficient way of mobilizing people's contributions. For funders that don't need a return, but can spend a little to get a lot...

Having difficulties in creating new content in Arabic - need funding to write the content - but can try to get the most from that funding.

Can we make an overview map of funders out there? What are they focusing on.

There are commercial business model.

Open source business models ... open content - training and services

Raise money outside of projects launched an auction as fundraising. Larry Lessig donated his coat, etc. Openbusiness.cc as a good place for finding information about business models.

Brian: launched several commercial funding - nonprofit organizations are a lot like commercial businesses.

Hilde: projects are based on funding. Free software has a business model that is relatively more difficult - open content is more difficult.

Print on demand is a way to generate revenue.

Corporate sponsorships are also a way to get funding. If your open content is also interesting to companies in some ways Using students to do work, and giving them cases to work - being a part of their studies as well. Managing volunteer contributions in a efficient way.

Some disagree with using students - the quality was not so good - the editor had to spend a lot of time editing the work. There is alot to manage. It depends on your quality requirements.

Beyond the initial investment (VC or grant) to keep it going, you need to either sell units or services. For open content the Options - print on demand, or getting people to sponsor further development.

Hybrid models - most of the content is open, but there can be closed-license content for hire.

Publishing through Lulu is a way to make a profit - we can get volunteers to write stuff, we can group things together - you can do stiff that exposes the traditional publishing model is a dinosaur.

How do you get the money to develop in the first place. If you get a grant to write something up front - it's relatively easy to sustain it - but the problem is the start up. All the models require up front - but can't be sustainable.

What about small markets?

One answer is advertising in the books - they believe they can make money - although it's not open licensed.

University presses - reopening as electronic open content producer - example - Rice university press.

"Robin hood models" - asking big libraries and northern based NGO's to subsidize the work for developing companies. - Not very sustainable. One possible is doing an "upsale" of the content - format it in such a way that it's worth it to pay for a PDF download. Can create revenue to allow for doing translations.

Funding by people in the diaspora of developing worlds. An isp in Tanzania that is funded by Tanzanian people overseas. A pledge bank is a good model to do that sort of things. Target specifically - for a translation in ...

Pledges are a good model for projects. Pledge bank reframes the Robin hood model. People will be happier to pay for something that is good. If you donate more than x - you get your name printed in the book, or printed corporate logo, etc.

Donations as a fundraising model as opposed to a business model. Funders are looking for revenue generation - social venture model - you are selling a service or a product. Issue around open content - who is the audience - do they have any $ to give. Are we going to try to generate revenue from an audience that doesn't have $ to spend.

Hybrid model - for profit selling a product - that's supporting the development of an open source project - like WordPress.

Open content is far more than just technical manuals - there is music, documentaries, novels. Different models for diffence thing. Cory Doctorow is making a lot of $ from open source models. Dynamics of the music industry in the arabic world is so different - they donate their music videos - they are a loss leader for their perfomances. It's quite complex.

How do people feel about non-commercial licenses? Cultural products that are popular. Implications of a noncommercial license - not supposed to make $ off of it? There is unclarity about what constitutes commercial use of content.

Open content - advertisement based model - they want to make money off of it ... collaboratively built open content site, but $ is meant to be made from it. Because allafrica does a good thing for Africa, they are willing to have ads. A for-profit might not be quite able to get away from it. Long history and trust relationship. Share revenue with sources of news.

Revenue generation for open content: ads and printing. For printing, need larger distribution channels. What are those distribution channels? Where is the revenue generating point? Lulu might be a place to make a deal with them - get some revenue kickback. GoodStorm - a social venture startup funded by philanthropy - it like cafe press - print on demand t-shirts etc. Nonprofits get a better deal, get a bigger cut.

Consulting and training models are possibly not sustainable - since the prices will continue to go down, the more supply, and the quality will go up.

Open source world - think about it alot - if you get it wrong - the open source community might turn on you in a spot.