They could charge for services such as sync but again that is going to be difficult Chrome does it for free.
I think Mozilla need to seriously look at how they are spending their money as it seems to be pretty insane some of their outgoings.
I know they are trying to diverge from just being a browser with things like Firefox OS but we all know that isn't going to ever be a real competitor to iOS and Android. Even in developing nations I think people are more likely to go with a dirt cheap Windows Phone when Windows 10 is out over a Firefox phone. One thing Windows Phone does really well is run great on very low powered devices. I can't ever see Firefox OS getting above 0.x market share.
Perhaps Mozilla is just too big now? Do they need to scale back to save money? Can they survive on a donations alone?
But how is "Firefox with ads" going to work then? Firefox is still open source after all. Someone will remove the bit of code enabling ads, gives it a fancy new name and eventually a critical mass will switch to this browser.
"Firefox with ads" lets one turn off the ads. The control offered is the same when you're allowed to download a fork. I don't see why a fork would hurt Fx so much if it just turns a feature off by default -- a feature that Firefox lets you turn off anyway.
Why? Anyone who would go to the bother of downloading a separate build (and worrying about whether it'll update itself properly) can surely click on the gear in the top right corner of the new tab page and uncheck a checkbox? (Or be like me and keep the new tab page blissfully blank. Far less distracting.)
I highly doubt the revenue from the ads will be significant compared to what Mozilla gets from Yahoo, at least not for a long time. This isn't about revenue; it's more like the old Firefox sync thing where it avoided sending unencrypted data anywhere. You could only decrypt client-side. Similarly, this is about trying out an ad model where the privacy-sensitive data stays client-side.
Perhaps it'll do better than old Sync did?
(full disclosure: I work for Mozilla on the JS engine. Sadly, though, I'm not one of those world-class JIT geniuses mentioned elsewhere in this thread. In fact, I'm a complete idiot. Please don't tell them.)
(And no, we can't survive on donations alone.)