Monetization via Paid Bundling

AKA: Widget Frosting, Bundle with Hardware

(selling hardware on-top of OSS)_

The open-source software is monetized by selling a necessary hardware component (the widget) for it stand-alone (e.g., ) or in a bundle (e.g., a Raspberry Pi with a Linux OS). The OSS basically creates or adds value to the hardware item, which is collected when selling the hardware. Often generates one-time income with few options to generate recurring revenue.


Variants & Options:



Characteristics Value Note
Effort to set-up Months Requires development of additional hardware and shop
Effort to maintain Medium Requires buying hardware parts, bundling, shipping, etc.
Cost to set-up High Hardware production or purchasing cost
Cost to maintain Medium Maybe Hardware development cost
One-time Income Medium Hardware can have higher price, margin for third-party hardware might be slim
Recurring Income Low Might be possible for hardware updates or extensions
Income Predictability Low Higher if hardware is often updated or extended
Full income Threshold 500+  
Recipient C Might be an Individual doing a side-hustle with third-party hardware
Additional Work High Additional develoment & production effort necessary
Visibility Medium Buying an out-of-the-box system is very convenient
Necessity to pay Medium Own hardware must be bought but third-party hardware can be bought from a competitor
Entry Threshold Low Credit card is sufficient
Countervalue Hardw.  
Scalability Medium Scales with the number of users (who want the hardware). Hardware might be useful for other applications.
Effort for marketing Medium Bundles are often convenient and offer a countervalue
Competitors O If third-party hardware is used everybady can be a competitor
Software types Big SW Better for big, complex and hardware-specific software