I've been thinking about this problem a lot, since I'm trying to figure out how to sustain our open source project. Our project is complex enough that it requires a few full-time people to maintain it. Our current funding comes from a grant, which is not sustainable in the long term.

I'm philosophically opposed to open core because tying revenue to proprietary features seems like the wrong incentive structure, I can't imagine how you'd avoid conflicts of interest. Plus, I'm building open source software because I believe in user freedom, so proprietary features leave an icky taste in my mouth.

My theory so far is that the open core model makes sense for VC-backed companies that are targeting enterprise customers. Most open core products seem targeted at enterprises, not small businesses or individuals. I assume this is because only enterprise deals can make the amount of money that VCs expect from investment. Of course, this leads to enterprise features being prioritized, which sucks for smaller organizations or people using the software.

I'd like my project to focus on meeting the needs of everyday people. I think we need more consumer focused open source software that is so well designed that it will displace proprietary SaaS software, where the incentive is to provide a service that customers get locked into. Software should be a tool, not a service.

The only project that I can think of doing a great job here is WordPress. WordPress is very easy to use, Automattic builds it, but they are not the only ones to make money from it, and I think the incentives are well-aligned.

I'm hoping I can find a similar funding model where I can build a sustainable project for everyday users without going after the enterprise market and all the sacrifices that entails. We are a non profit now and that keeps our incentives aligned with users.