Money Machine

Dual-license your open-source library (AGPL/GPL + paid commercial license)

Rank #164 · Tier C · Priority score 47/100 · Category: Licensing, royalties & rentals

Publish useful code under a copyleft license and sell commercial licenses to companies that cannot comply with AGPL/GPL obligations.

Scores

Metric Value
Payment probability (6 months) 2/10
Automation after setup 7/10
Setup effort (1 = trivial) 8/10
Ongoing effort (1 = none) 5/10
Income potential 8/10
AI leverage 8/10
Legal in reference countries 100%
Platform pays out in reference countries 85%
Capital required $0
Time to first dollar 60–540 d
Typical monthly income (low / median / high) $0 / $0 / $10,000

Realistic expectations

Most people who try this earn around $0–$0 per month in the first year; the high figure of $10,000 is a ceiling for a focused solo operator, not a typical outcome. The chance of receiving at least one real payout within six months is rated 2/10. Expect the first payment after 60–540 d.

How it works

You build a library/tool businesses want to embed (PDF, charting, sync engine, CLI), release it under AGPL/GPL and offer a commercial license that removes copyleft obligations, sold with license keys. Companies pay because their legal teams forbid shipping AGPL code in proprietary products. Sell via Polar (merchant of record, automatic license keys) or Stripe plus Keygen for license validation. You must hold copyright to all code, so require a CLA from contributors.

Platforms: Polar, Keygen, Stripe, GitHub

Resources & business plan

What you need to start

Resource Amount
Time to launch 300 hours
One-time cash $0
Recurring fixed cost $2 / month
Tools GitHub (free); Polar or Stripe checkout; Keygen license keys (free tier); lawyer-reviewed commercial license template
Skills building a library companies depend on; copyleft licensing and CLA management; B2B sales; AI helps with code and docs
Equipment laptop
Accounts GitHub; Polar/Stripe + KYC; bank account

How the money is made (unit economics)

Metric Value
Unit per commercial license-year
Typical price per unit (low / median / high) $300 / $1,500 / $15,000
Direct cost per unit $0
Platform fee 6%
Gross margin (median case) 94%
Human hours per unit after automation 3

Commercial licenses for niche libraries commonly $300-$5,000/year, enterprise more; Polar 5% + $0.50 (+1.5% non-US cards).

Break-even

Metric Value
Monthly fixed cost $2
Units per month to break even 1
Typical months to break even 12
Months to recover startup cash 0

Fixed cost = recurringMonthlyUsd only (startup cash not amortised). Fixed cost is just a domain (~$2/month).

Market conditions (Nov 2026)

Factor Assessment
Demand trend stable
Competition medium
Effect of AI headwind
Price pressure falling
Chance of real net profit within 12 months (≥ $100/month where the plan can pay that much) 3%
Typical net profit at month 12 (low / median / high) $-2 / $-2 / $8,000

Works for projects with real enterprise adoption (PDF, charting, DB drivers) where legal teams avoid AGPL. AI coding assistants now generate permissive alternatives for small libraries, shrinking demand at the low end. Most new projects never gain the adoption that triggers license purchases.

Pricing strategy

Start with a simple per-company annual price ($500-$1,500) and a free tier for small firms; add per-seat/enterprise tiers once inbound requests arrive.

Path to profit

  1. Month 0-3: publish an AGPL library and grow users
  2. Month 3-6: add a commercial license page and CLA
  3. Month 6-12: first inbound requests if adoption exists ($0-$1,500)
  4. Month 12+: 1-5 licenses/month for the rare successful project

Business-plan sources:

Payout path

Full cycle (setup → earn → bank account)

  1. Build library
  2. Publish under AGPL + commercial option
  3. Gain adoption
  4. Companies buy license keys
  5. Payout to bank

What can be automated

Unavoidable manual steps

Legality & compliance

Copyright licensing is legal everywhere; Polar as merchant of record handles sales tax/VAT.

Risks

Evidence that people get paid

Long-running dual-license businesses: iText (AGPL+commercial), Artifex Ghostscript, Qt, MySQL historically; Sidekiq Pro/Enterprise show developers pay for commercial licenses.

Sources

Tags: developer, recurring, ip


Generated from data/strategies/licensing.json by npm run build:catalog. Edit the JSON, not this file.