So if you look at few open source product like WordPress or Android, you will realize that these products
are absolutely free for people and they can use these products without paying a single penny.
In that case, you might be thinking than how exactly these companies make money.
Well, to understand that in this video we're going to talk about the open source business model.
Now, before we go deep into open source business model, let's understand the difference between open
source and closed source.
So let's look at a few open source product.
The first one is Android.
Now, Android is an open source operating system.
And if you are a mobile manufacturer, then you can manufacture a mobile and you can use Android as
the operating system and you can sell your mobile in the market.
Now, apart from the operating system, we also have few programming language like our programming Java,
Linux and Ubuntu, and we also have a browser with the name Firefox and this Firefox browser is absolutely
free and it is also open source.
So let's understand what exactly is the difference between an open source and a closed source product.
So in an open source product, the source code of that specific product is publicly available.
That means people can inspect, modify and enhance the source code.
So let's say if you wanted to build a new feature in Android, well, the source code of Android is
publicly available and you can build a new feature if you are a OS developer.
Similarly, if you know C-sharp or C++, in that case you can inspect, modify and enhance the source
code of Firefox browser because their source code is publicly available.
And these are all open source product.
On the opposite side, we have some cloud source product whose source code are not publicly available,
and if you work for a cloud source company, then only you can access the source code of that specific
product.
So all your social media apps like Twitter or Instagram, their source code, are only available to
their employees.
And if you are not working in that company, in that case, you never know how exactly the algorithm
work.
Now, to understand the difference between open source and closed source, let me explain that with
the help of a really good example.
So WordPress is an open source CMS, so you can simply build a blogging website or a e commerce website
with the help of WordPress.
And WordPress is an open source product.
But even after having an open source product, WordPress have two different types of product.
So if you go to WordPress.com and WordPress dot org, you will find two different version of WordPress.
So let's understand the difference between WordPress dot com and WordPress dot org.
So WordPress.com is developed and run by a private company called Automattic.
And if you look at WordPress dot com, you can simply buy your domain on this specific platform and
they will also provide you the hosting of your website or e commerce platform.
And because.
They are contributing a lot on WordPress dot org, which is the community open source version.
So they have resolved these integrations and performance issues that a single developer will face if
he will try to integrate this open source product into their cloud by themselves.
So they make money by allowing other people to host their website and use their services, like buying
a domain or a sstl certificate and all of these things.
On the other side, WordPress.com is the open source version and you can install wordpress dot org from
your cPanel if you take a third party hosting.
Now, WordPress dotcom normally makes money from the marketplace where if you purchase an add on or
a plugin or a theme, in that case they will take a small cut every time a transaction will happen on
their marketplace.
So let's say if you're buying a theme for your website or maybe a add on to enhance the security or
SEO.
In that case, you have to pay a small amount of, let's say five, seven or $10 and WordPress dot com
will take a small cut on every single transaction that will happen on their marketplace.
Just like Shopify.
Now WordPress dot org run majorly through donation and you might be wondering which oil company will
donate to WordPress dot org.
So if you look at these third party hosting platform and plug ins, but if you look at the hosting platforms
like Blue Host or hosting or well, they are the competitor of WordPress.com and that's why these companies
are funding WordPress dot org because they want this platform to survive so that they can also make
money because they are majority of the revenue is coming from.
WordPress user.
Now apart from this other WordPress plugin like yours to SEO and Element or are there because WordPress
user install these plugin from their marketplace and that's why these people also donate.
To WordPress dot org so that they can improve the product.
So that's the difference between an open source product and a closed source product.
Let's understand the different types of approach these companies use.
In the open source business model.