One common question that we’re asked nearly as often as “How the heck do you pronounce Cerberus?” is “How the heck do you guys expect to stay in business by sharing all the source code, giving away licenses, providing free support, and only charging people a one-time fee for a license they can use for several years?”
To be honest, we’ve never fully reconciled the conflicting principles that we inherited from both open source and capitalist philosophies. We build software because we like building software. We share so much because it’s the best way we’ve found to have a huge amount of great feedback to draw inspiration from. It’s also the best way we’ve found to write reliable software (“more eyeballs find more bugs”). Over 7 years later, we still get excited about new ideas because we’re still building something that we need just as much as everyone else.
There was surely a point in the history of the project where we could have done things differently and tried charging very large numbers to very large companies; yet we’ve always considered ourselves users of Cerb first and a business built around Cerb second. While we likely would have made more money going the enterprise route, I doubt the project would be anywhere near as inspired or popular. We want to build something for people who aren’t intimidated by innovation.
We recognized pretty early that the real value here is the experience we’re gaining from working with all of you while building this, rather than just slapping a price tag on the bits and bytes that come out of that collaboration. Cerb4 is always going to have to evolve alongside the way people choose to communicate online. The project is always going to need custodians that filter and refine feedback according to tightly-held values. We’ve been well served by that philosophy so far, and we’re not at risk for becoming irrelevant just because you guys have all the source code.
I see plenty of software companies who are paranoid about letting people see the blueprints and guts of their apps because they don’t really understand where they’re creating lasting value. People can always knock off a snapshot of your application at a given point in time, with or without the source code; but if your copycats are always dependent on your ideas and vision then you really have nothing to worry about. You see huge companies hiding demos and screenshots of their applications because they understand the first half of that. They fail to see that people want to ride along with an evolving project, with people they trust and enjoy collaborating with.
Cerb4 is a business investment, it’s not a $50 video game. There’s no build-up to a final level with a big boss at the end, after which you uninstall and move on to something else. We’re not selling something consumable. Cerb4 becomes a member of your team, every day, pulling its own weight, helping your people communicate, improving in its small way whatever the founding purpose of your organization is. You wouldn’t want a team member who couldn’t learn from past mistakes, so why would a cheap knockoff pose a threat? A knockoff isn’t going to have any context for how a great application arrived at its conclusions. They can’t show their intermediate work. They’ll have a high propensity for repeating most mistakes which start with seemingly obvious answers.
Here is where capitalism creeps back in (as it should). The inevitable flaw in our idealistic attitude about licensing is that someday the word-of-mouth referrals we get won’t continue to bring in enough new people to pay our existing team of people who are attending to our existing happy users. That premise is already flawed to begin with because we should always be spending most of our time working with the people who are already on-board about the current direction of the project — not compromising our vision to appeal to a wider audience.
We want it both ways. We don’t feel that charging more for licenses, or charging annual renewals for owned licenses, is providing any extra value to you guys. However, we do need more ways to fund the project year-to-year from existing people who like working with us — people who want us to remain in business. We’ve had an endearing chuckle over the occasional distraught call we’ll receive from someone who is genuinely concerned if we’ll be around next year — but, appreciation from us aside, we realize it’s a serious concern for many people who are investing in the project as a long-term decision (which we’d like to think is everyone).
So here’s our compromise. A major way we can provide ongoing value to existing, happy Cerb4 users is to make sure we’re handling any issues or feedback as quickly as possible. We do a lot of free support between Town Hall chat, our helpdesk, the forums, the blog, Twitter, etc. While we don’t plan on cutting anyone off from free help, we’d like to offer a ‘Priority Support’ optional service to people who want assurances that their ideas and concerns will be answered the same business day we receive them. Those people will jump to the front of the line everywhere that we interface with the community. When we’re finished with the Priority issues then we’ll handle everything else. We’ll make sure all Priority issues have responses before we leave at the end of the day; whether there are 15 or 150.
We started from the basis that anything we bring in on services for existing licenses from happy, willing, existing users is better than our one-time licenses which require so much attention on bringing in new business. We are also conscious of the fact that if *everybody* is a priority then nobody is a priority. So we established a price for the new level of support that we feel is sustainable to always have enough people trained on our end to help you out. We also probably could have asked for a lot more if we felt like managing support contracts on a monthly basis, but we decided we wanted to cover people for an entire year to reduce the hassle on both sides. We can offer a more pure price if we’re not factoring in the cost of chasing down invoices and expired credit cards every day. When we’re asking for a lump sum for a service we have to keep things psychologically reasonable.
We arrived at a price of $399/yr for Priority Support for treating three (3) of your provided contacts as extra special; which is discounted to $199/yr for small businesses (under $250K USD revenues), educational institutions, registered non-profits, and open source projects. Depending on who you are, that’s probably going to seem like too much or too little. If you think it’s too much, don’t pay it! You clearly don’t see the value in having our near-decade of experience on this project at your beck and call. If you feel it’s way too cheap, then buy it and think of some things you’d like to sponsor from the development roadmap to get them done faster. We don’t ask for donations, but we’re happy to accept financial “calls to action” on something you feel you need sooner than later. We also ask for less on custom development requests if it’s something we can roll back into the project for everyone to benefit from.
Since this post is already wordy enough, you can find the full list of benefits for the Priority Support plan in the shop:
http://shop.webgroupmedia.com/cerb4-priority-support.html
If you can see the value in supporting the project in that way, in return for our rapt attention to what you’re hoping to accomplish using Cerb4, then please sign up for a year of Priority Support (it’s about $33 a month).
Before I retreat to 4.2.2 and 4.3 development again for a while, there’s one more service we’re now offering as a package deal of several smaller things we’ve done on a consulting basis. We’re calling it the Cerb4 Tune-Up service, and you can find the full list of perks, once again, in the shop:
http://shop.webgroupmedia.com/tune-up.html
We’ve seen many people run into trouble during an upgrade over simple things that could have been avoided by just following the docs. Unfortunately, this has given that group of people a general distrust of upgrading. With the Cerb4 Tune-Up service we’ll be your wing-man during the upgrade, maintenance, and backup of your helpdesk. For $75 USD, one time.
As an added perk, we felt it would be fair to give Priority Support people one free Tune-Up per quarter (i.e. once every 90 days). That’s about the same pace that we’re planning major releases like 4.3 and 4.4 for the foreseeable future — so it works out pretty well.
The last time I posted a blog post like this, we had a number of people immediately ask if I was making a subtle cry for help during a recession. I assure you, this isn’t a cry for help. We’ve been here for 8 years. We’re a lean bootstrapped company, with a well-respected project, with a decent flow of new interest in the project, with many On-Demand sites whirring away and paying monthly — and we’d have to do quite a lot wrong from this point to be in serious trouble. I’d be less interested in the fact we’re asking existing, happy people to continue contributing and more interested in the fact we’re doing something worthwhile enough that you read this entire post. ;)
Thanks, as always, for adding your voice and thoughts to the project!
-Jeff@WGM