Ask HN: In the real world we pay for everything so why not software?

It seems like I and many others have develop a bad habit of giving software away for free. Whereas in the real world we charge for anything of value. I met a carpenter today. You could not imagine giving away hand crafted furniture for free. It's his trade. So why is it in software we give so much away for free? Like open source and even hosted services?

I have written a lot of open source but feel like now I need to really use my skill to sell something, to sell the things I build. Does anyone get that feeling?

22 points | by asim 6 days ago

37 comments

  • AndrewOMartin 16 minutes ago
    We should have to pay every time we use Pythagoras' Theorem. Sure this might make it more expensive for an individual to do math[s]? and that might have a negative consequence, but it would inspire more profit-driven mathematicians to contribute their skills to society.
  • mmooss 13 hours ago
    It's not just giving away, but getting. You get an enormous amount for free and it fuels the software industry: Operating systems, programming languages, network protocols, Unicode, applications like the web and email, codecs, information about almost everything (e.g., on HN), ... almost infinitely more.

    Would things work better if you paid for every one of those? How much free do you have to contribute to get all these things in return? The network effect creates an incredible ratio, in part because moving bits is nearly free.

    Ask the inverse question: Why would we pay when we can exchange these things for free?

    Edit: Also, if you want to change the world, to contribute to it, freedom often facilitates that.

  • TheCleric 13 hours ago
    I do things for free all the time. I love my kids for free. I serve the less fortunate for free. If I have the time and resources and it makes the world a better place free is my default price.

    That being said I also produce software for a living as well and there’s nothing wrong with that either. It’s not either or. It’s yes and.

    • ryandrake 13 hours ago
      There are plenty of things that are free and also provided for a fee. You can pay to go to a conference and hear someone talk, or you can just go outside and hear people talk for free, and often times enjoy it more than the conference talk. You can pay for admittance to a dance club or go to another one for free. You can buy bottled water or drink from the public water system for (mostly) free. It's not an either-or situation.
  • mrkeen 6 days ago
    You pay the carpenter for his time and materials. The same thing could be true of software development.

    But instead you buy a table from Apple and it's only compatible with chairs from Apple. So you can't pay your local carpenter for repairs or better chairs.

    Anyway, the big companies have long since realised it's more lucrative to stop selling the furniture and rent it out instead.

    What do you build?

    • asim 6 days ago
      I wrote https://go-micro.dev - A go framework for microservices. I've written a few other things in my time (https://github.com/asim) and tried my hand at hosted paid APIs which was moderately successful but failed as a VC funded business. I think I've just existed so much in an era of free consumer services like Google and open source software that it's skewed my perspective a lot. Like why charge for this, it could be free..m
      • mrkeen 6 days ago
        So you walked out of the free carpentry store holding Linux, a Go compiler, Git, etc. and now you're looking to build stuff to sell to other carpenters! Non-carpenters don't need microservice frameworks or app platforms. Plus carpenters know they can usually get the stuff for free anyway - they were just in the same store as you!

        Have a think about the relative sizes of the carpenter market vs. the non-carpenter market.

        0.5% of humans are devs, but 70% of humans have internet. 70-90% of internet users have made an online purchase. (I assume these AI slop answers are at least in the ballpark)

        (Anyway I really don't have a head for business, so don't take my advice. I just like programming on and off the clock and I get a salary for it)

        • asim 6 days ago
          No thank you for that example at least because I feel like I got hit in the face with a big fish. Of course trying to sell to other carpenters is mistake! Unless it's really refined tools they need, not the stuff you built with them. I guess the framework was a tool Devs need but I could never sell it...

          Now carpenters selling to regular people. Ok finally my brain clicks. Take the easy route. Sell to people who don't code and help them win. Then it's about specialisation I guess. You could build anything, maybe there's a focus area. I did build https://mu.xyz but yet to figure out that user demographic.

          Thanks for the thought experiment

  • JohnFen 6 days ago
    It doesn't have to be all one or the other. I produce both commercial and free software. I produce commercial software to make a living. I produce free software to contribute to making the world a little bit better.
    • fragmede 13 hours ago
      The question is, is it actually better for it? I have a bit of software I've created. It's a reimplementation of a commerical product. It scratches my itch. It would also scratch the itch for most of that company's paying users. Do I a) Keep it to myself and a couple of close friends b) sell it for slightly cheaper c) sell it for slightly more d) give it away for free. There is a whole company out there with people that depend on this app to pay their bills. Giving it away for free puts that whole company out of business! Everyone working there is would then be out of a job. Sharing this thing with the world for free might be generous of me, but who am I to fuck over the people at that company. There's probably a person who's not a software developer who's struggling to pay the bills as is. Giving my software away for free puts her out of a job.
      • zharknado 13 hours ago
        > Giving it away for free puts that whole company out of business!

        It really doesn’t.

        The more toward “enterprise” a software buyer is, the more what they’re actually paying for is a reputation, reduced liability, a throat to choke, etc. Functionality is only one piece of the puzzle.

      • 999900000999 13 hours ago
        Should Libre office exist ? Think of the Word team at Microsoft!

        Whatever you've built is probably going to be worse than what an entire company can make

      • 0xbadcafebee 13 hours ago
        > There is a whole company out there with people that depend on this app to pay their bills. Giving it away for free puts that whole company out of business!

        This is part of competition. It's common for businesses to have their value proposition challenged, and they either have to justify their existence, or die. If your whole company can be replaced by a single person tomorrow, it wasn't that valuable a company. We benefit more as a society by competition causing companies to be more efficient, and people having access to more value for less money.

        Also, those people potentially losing their jobs isn't the end of the world. We all lose our jobs eventually, for one reason or another. We all have to expect that and be able to find a new job.

  • simonw 13 hours ago
    The incremental cost of a carpenter giving away an extra table is the cost of the time and materials needed to build that table.

    The incremental cost if duplicating and giving away a piece of software is nothing at all.

    If you want to be generous to the world, open source is an incredibly cost effective way to do that!

    (I remain extremely interested in ways we can ensure open source developers do get compensated for the huge amount of value they put out into the world, but that's the key difference between carpenters and software developers.)

    • gramie 12 hours ago
      The incremental cost of a musician giving away MP3 files of his/her music is also "nothing at all", but the vast majority of musicians would prefer it if they could afford to eat!

      Just like with software developers, we want to find a way to compensate musicians, but that it proving a very intractable problem.

  • master_crab 13 hours ago
    Software doesn’t have an incremental cost. The cost of one unit of software is the same as the cost of 1 trillion units of software. That’s not the same as real world items.
    • an0malous 13 hours ago
      The transactional cost is also basically 0
    • cryptica 13 hours ago
      Still, the cost of production is not 0 and the problem space is huge with no silver bullets; especially once you factor in things like business, scalability, regulatory and efficiency requirements.
    • moron4hire 13 hours ago
      It doesn't matter if software has no marginal cost of production. Production cost has nothing to do with what you can charge for something. What you can charge for something, minus what it cost you to make it, is of course your profit and will help you decide if the effort is worthwhile, but it doesn't change the fact that the input cost has nothing to do with the output price
      • bigstrat2003 13 hours ago
        > Production cost has nothing to do with what you can charge for something.

        On the contrary, production cost has a great deal to do with what you can charge for something. In a perfectly efficient market, someone who charges more than what an item costs will sooner or later get outcompeted by someone who charges less. I think it's fair to say that production cost isn't the only factor in what you can charge, but to say "it has nothing to do with the price" is going way too far.

      • jrowen 13 hours ago
        It does matter though. It is definitely a factor. There are lots of other factors, and different types of businesses with different margins, but they are all definitely tracking and optimizing those figures.

        Consumers know that software can be reproduced cheaply and carpentry cannot.

        • zharknado 13 hours ago
          Agreed. Competitors will undercut a price that ignores the unit economics, because it’s super easy to do.
  • protocolture 13 hours ago
    If the carpenter could build 1 chair, and then infinitely duplicate that chair to everyone who needed it, the economics would look similar to software.

    I actually dumped a bunch of my project files into chatGPT, and asked it "Is there anything in here close to completion/close to marketable" and the answer was "Nope", which mirrors my own thoughts. My code is too niche, and the 10 or so people playing in the same space as my hobbies already have their own full working stacks and have no need for my stuff. One of my projects, I found 3 other people on a tiny discord, had already working prototypes with better software and hardware.

    So I dump it all on my github for whatever minor assistance I can give anyone else with the same brainwoms that I have.

  • mingus88 13 hours ago
    We don’t pay for everything in the real world.

    Music is the first thing that comes to mind. Nobody pays for music anymore. They maybe subscribe to a streaming service but most people expect to consume as much of the actual music basically for free.

    Boxed software back in the day was something people would pay for, but like music it’s become an intangible commodity that people don’t feel they should pay for.

    It’s a service economy now.

    • parpfish 13 hours ago
      100% agree.

      Spotify likes to tell a story about how they “saved the music industry from piracy”… but piracy clearly won. Napster et al reset consumer expectations that you get everything for almost free, instantly. The heart of the artist payment problem isn’t that Spotify pays out too little, it’s that listeners don’t pay in enough.

      But this isn’t just a problem with music, its a problem when trying to figure out pricing for anything digital. All of our intuitions about what a physical thing in the real world should cost get really screwed up when theres zero cost to duplicating and we’re dealing with geographically unbounded internet-scale distribution channels.

  • ggm 13 hours ago
    Historically, a lot of systems software was given away. Operating System source code. Text formatting systems. The annual issuance of the DECUS tape, covering pdp11 and Vax and Tops-10 systems is where I intersected with this.

    And of course, this in turn fed into other trends. People shared code routinely because they had always shared code routinely. The emergence of expensive code, could be held to be an anomoly: Most code of the day outside of commerce and military and secret places was written in publicly funded institutions, and shared as a matter of course, or at worst sold for cost-recovery prices.

    This also relates to the emergence of "hold harmless" licencing terms. If you give something away, you want to be sure nobody comes back at you for redress.

    Stallman's GNU Manifesto was a reaction to change in this landscape. It wasn't "hey, lets break the dam wall of sold software by inventing free software" it was "this modern trend to locking software up is wrong. I want to return to the roots of free software, which has always existed"

  • rubyfan 13 hours ago
    The carpenter comparison isn’t a good one. The output of the carpenter’s labor and (importantly) material resources yields a hard good and that process does not scale. Software on the other hand scales extremely well and the marginal cost of giving software away for free or selling it to the next person who wants it has next to no additional cost. The expense model of software enables economic models that would never work on physical goods.

    Unlike hand crafted furniture, software has next to no durable value beyond the transactions it enables. Don’t get me wrong, software investment can be incredibly durable, e.g. banking and insurance mainframe apps built 50 years ago. But without a specific business application software itself is nearly worthless.

    Writing open source software is probably better compared to published research. It’s an academic endeavor and also a way to put your name out in the world in a way that recognizes your contribution and may lead to commercial opportunities for you and/or your software.

  • asim 1 hour ago
    Weird this thread came back...ok..must be relevant!
  • adrianwaj 6 days ago
    Well, people do things for free because they enjoy it. Maybe there should be a place where developers can list the things they would do almost for free. But then they could solicit payment up front before starting work. So just as http://weargustin.com is for clothes, something like that for software. Then, the "pledgers/pre-funders" can get privileges once built: maybe even exclusive access.

    There's also a similar crowd-funding idea here: https://reddit.com/r/oasisnetwork/comments/1py9cah/app_idea_... but releasing the funds is more discretionary and happens after delivery, with the work being more externally instigated - as opposed to passion projects just looking for buy-ins.

    • Imustaskforhelp 13 hours ago
      I have this idea where similar to railway's kickback program, a more customizable and more free way could be built where the developer sets the pricing of the server

      so it might be more pricey if you are using it a lot compared to self hosting itself but then again, the deployment hassle of it and some management aspects can be handled by the person who built the code and has expertise on it

      So like for simple usd$, lets say that we can charge like 10$ instead of 5$ for a simple vps and this % thing scale (obviously 100% feel wrong but also transparent compared to how most Saas work)

      Like perhaps its like byok but I have never seen it really that much widespread/easy and byok is usually only popular in large businesses cloud solutions themselves and not so much in hosted options/indie people like you and me

      • adrianwaj 2 hours ago
        Sounds interesting, I think there'd always be a market for cheaper hosting, especially Wordpress. Also a way to "park" a blog as static files over the very long term or as an archive.org alternative. It's an explored space.

        People are obviously going to want to host their new fangled vibe-coded projects too. Maybe with crypto and stablecoins there's a way to keep costs down and anonymity high. Perhaps anonymity is overlooked too in hosting. https://news.ycombinator.com/item?id=46334025 .. I'd also look at providing options for getting users paying with x402.

        Also hosting in Iceland looks interesting for a number of reasons. https://gemini.google.com/share/c6d7c4fa5f3d

  • maguay 12 hours ago
    I have a longstanding suspicion that paying for internet service makes people feel like they've paid for everything on the web, and thus expect it to not cost more after that initial fee. That the companies who provide software and content online are, generally, not at all connected to their ISP isn't necessarily intuitive to the average person outside of tech.

    That's increasingly changed, thanks to some combination of Netflix and other consumer-facing subscriptions, the App Store's easy payment mechanisms, and in-app purcahses for digital goods in games spilling over into the real world. There's still more mental friction to paying for things online and more expectation of free by default, for most people, in tech than in the real world.

  • 0xbadcafebee 13 hours ago
    A carpenter does woodworking for money. A woodworker does carpentry for fun. If you wanna charge for it, do it; if you don't want to, don't; it's up to you. And you can both give away your source code, and charge for it. Multiple/hybrid licensing, paid support, custom engineering, managed services, etc. This was an expected part of the free software movement when it started.

    I've always given away my code because I didn't write it to get paid, I wrote it because I just needed the code. It costs me nothing to give it away. I already benefit daily from other people doing this very thing, so it just makes sense to me to contribute back to the community I get so much from. The hobby software market was also like this when it first started (although unfortunately a lot of that was pirated software)

  • dasil003 12 hours ago
    I've gotten way more out of open sourcing software than I ever could have by trying to sell the same software. Not all value is monetary, and participating in open source creates different types of technical capital (reputational, barter, scratch-your-own-itch, etc). If you want to sell software, all of a sudden you're playing a very different game that is way more marketing/sales and way less technical.

    There's nothing wrong with that, but know what you're signing up for. If you just want to be paid like a carpenter, contracting for time and materials is the standard way to do that, much easier than starting a software company.

  • lazylizard 5 hours ago
    you step into a class and draw a line down the middle.

    to the students on the left , you pass them a note that asks them how much would they pay to hear you recite some poetry you wrote last night.

    to the students on the right, you pass them a note that asks them how much would they pay so that they wont have to listen to you recite the (same) poetry you wrote last night.

    its not just free. it can be worth negative money too.

  • jmward01 13 hours ago
    I think part of this is that software is new. I mean really new. If we all just landed on a new continent and started a new civilization we would probably see a lot of 'free' happening as the community built the essentials. Slowly over time new community would come together less to help each other build houses and more and more a robust economy of services and goods would take over. This metaphor doesn't totally explain the opensource world, but I think it is a major driver for a lot of it.
  • RagnarD 13 hours ago
    I pay for software and I bet everyone reading this, has as well. The question is which software, doing what, and how to get paid.

    To take iPhone apps as a category, some are paid, but most are "free", because experience shows that people will easily try a "free" app, greatly preferentially even if the price is $0.99. But for many, probably most, of such apps, there's in-app purchases, designed to be an ongoing source of revenue.

  • userbinator 13 hours ago
    and even hosted services

    Also keep this old saying in mind: "If you're not paying for it, you're the product being sold."

    As others have already mentioned, it's possible to do both. But the things I work on in my "free time" are unlikely to be profitable anyway.

  • siliconc0w 12 hours ago
    Software is a perfect public good. Once it is created, unlimited copies can be given away for free and everyone benefits.

    Public goods have a free rider problem. One way to solve this is to turn a public good into a private good through a legal fiction called "intellectual property". While this is one way to solve this, it does so with tremendous societal cost - effectively denying a useful tool to the vast majority so that a small number have an incentive to pay for it.

    So yes you can charge for software and people do but it's probably not the optimal way to organize a society.

    • german_dong 11 hours ago
      "Tremendous societal cost" is putting it uncharitably. My country was built on the financial incentivization of patents. I can think of several economies with an open disregard for patents, even some where the state assumes ownership of all innovation, and I'm happy I live in one where IP hoarders like The Walt Disney Company continue to thrive.
      • siliconc0w 10 hours ago
        It's less of a big deal when we deny Disney movies to kids when they could watch them for free.

        But it is a pretty big deal when we deny medicine to sick children (or push families into taking on crushing medical debt).

        Probably at least several million people annually are killed to maintain your financial incentives.

        • german_dong 1 hour ago
          That's right, but HN clapback derangement syndrome compels me to state another obvious fact of life.

          Profit motive is the singlemost powerful motivator for the pharmaceutical industry. Take that away, and let's see how many smart, hard-working people work their butts off to rescue sick children.

  • vunderba 13 hours ago
    > Whereas in the real world we charge for anything of value.

    How much music, poetry, art, and writing is created and freely distributed - do you consider it without value?

  • german_dong 6 days ago
    Many reasons:

    1. Internet has made distribution frictionless. So unlike giving out Uber trips, giving out code costs you nothing.

    2. You have a real job. The "80% time" for which you're paid subsidizes the self-promotional work you do for free, and let's not kid ourselves: most of us write open-source not out of altruism but for the recognition.

    3. Software is immediately useful. Lawyering is a lot like programming in that both involve putting pen to paper in just the right way. But pro bono legal work is a lot more painful than whipping up some code. Lawyers have to deal with people and all their bs.

    4. Software is easy. I don't know why but the return on capital blows away the return on labor. Whereas Microsoft may have once derived most of their profit from software, they've now come around to the rest of the tech industry which is selling hardware and compute -- the software that comes with it is included.

    • calvinmorrison 13 hours ago
      > most of us write open-source not out of altruism but for the recognition.

      I've only contributed to open source to fix bugs in software i use every day.

  • phkahler 12 hours ago
    The marginal cost of software is zero. You should expect not to pay for it unless you want pay for new development.
  • grayhatter 13 hours ago
    > have develop a bad habit of giving software away for free.

    Thankfully, it's still early in the year, so this doesn't mean much yet but at least I can say it with complete certainty; so congratulations, you have said the dumbest thing I've heard all year!

    > Does anyone get that feeling?

    No, I don't feel bad about giving gifts. I don't feel bad about trying hard to make the world I'm forced to exist within a bit better even if that "better" is inconsequential. No I don't feel bad about not making the effort I'm able to produce, predicated on some sort of compensation. Neither compassion, nor the desire to try to help others is a bad thing! Why would I want to demand payment from people who I want to help?

    I don't regret playing a positive sum game.

    Especially when everyone around me is determined to play negative sum games, or force others into the same. Or in case of this question; have been gaslit so traumatically, that they feel they are wrong for trying to help other people without demanding compensation.

    You're allowed to do nice things for others, without expecting anything from them in return.

    Don't confuse gifts, with the effort required to exist in a "user hostile" universe. You might need to trade effort for compensation to 'survive'. But that doesn't devalue the positive improvement you're capable of, regardless of that reality. And it doesn't make it wrong to do so.

  • bigyabai 6 days ago
    Software is a zero margin commodity, not because it costs nothing to produce but because it can be reproduced infinitely for free. That's why even copywritten/"paid" software like music and video games ultimately end up being free too.
    • makapuf 6 days ago
      But then music, movie and other intellectual productions are everything but free, and AI is sharply shunned whereas code is not. Why ?
  • casey2 12 hours ago
    Software is a platform: Locking in users is VERY profitable. Selling high quality programs for users that recognize it? You only do that if love the craft (or are in some bubble)
  • tonymet 13 hours ago
    Open source, when talking about linux and related apps has mostly been a force for good. Improving competition, innovation, extending support for products, helping train & inspire young developers in the trade. Gates claimed it would destroy the software industry, and years later the industry grew much faster off open source than it would have otherwise, and made Microsoft more competitive than they would have otherwise.

    That being said, there are negative aspects. Open source advocates can be a bit sanctimonious in the other direction. For example, complaints (not from the devs themselves) about corporations making loads off ffmpeg, or openssl, without adequately compensating them. Even though companies are employing the licensed apps as intended. Another issue is how entitled open source consumers can be: demanding free access to apps, or judging seemingly trivial apps for charging a fee.

    Selling even a trivial business is hard work, and 90% of the time there's much more nuance to a business than meets the eye.

    If someone chooses to donate their time for free, and it's not done out of spite to undermine a competitor, it's probably a good thing. But we could all use a bit more humility and introspection.

    • maxkfranz 12 hours ago
      These are all great points.

      A big value of OSS is that it can obviate the need to reinvent the wheel. We should cheer on when open source software is used, regardless of whether the users are corporations or individuals.

  • bfkwlfkjf 13 hours ago
    Because people enjoy coding.

    And before you say "the carpenter enjoys making chairs too"... I'll believe that if you can show me that a substantial percentage of carpenters spend 8 hours a day making chairs even when they're not monetising them. A substantial percentage of developers spend 8 hours a day coding when they're unemployed because they enjoy it.

  • renewiltord 13 hours ago
    Yeah that's the difference between value creation and value capture. If you're not good at the latter then you're not going to get paid. You can capture value many ways:

    - subscriptions that promise improvements or act as DRM

    - vendor contracts

    - becoming a platform and extracting rent

    - using your audience as an advertising resource

    But the reality is that the hard part with software is discovering what's useful. Actually writing software has been getting easier for a while. Once you've discovered what's useful, no one is going to pay you for that. They can replicate. I'd rather use podman than docker.

  • hagbard_c 13 hours ago
    Well, I build software for free just like I play guitar for free, repair stuff for free, help out organising events for my children's school for free, taught elderly people at the local care home how to use computers for free et ce te ra.

    I do not get the feeling that I did nor do wrong by acting this way nor do I feel like I'm doing wrong by using free software. In what way would the world be a better place if I started charging money for the mentioned services and started paying some of it for software?

  • cryptica 13 hours ago
    Thanks for posting this. I struggle to understand this as well.

    Something else I struggle to understand is why some people/companies will build their entire business on top of software they don't own on top of third-party platform code that they can't even see. Somehow they prefer this than paying for an unlimited license to self-host and control the code. The companies who have access to the customers/end users definitely should have that kind of leverage over platform providers.

    The software industry is weird to me. Saying this as someone who has been in it for almost 2 decades. I wish someone could explain it to me.

    At a fundamental level, I cannot make sense of the relationship between people and software.

    The duality of people making software free and open source only to be ignored completely and at the same time companies paying massive license fees for essentially the same or even inferior software... I suspect it's largely driven by cronyism.

  • moron4hire 13 hours ago
    Free Software never had to mean Free of Charge. It is supposed to mean Free to do What You Want. People assumed giving away source code would mean that anyone could compete against them with their own code, so they mentally drove themselves to bottom barrel pricing. That assumption has basically been completely invalidated in the last 30 years, but the damage is done.
  • maxkfranz 12 hours ago
    This touches on an interesting point beyond the one about the low marginal cost of software distribution: Software is a field in which both capitalist philosophy (e.g. startups) and communist philosophy (e.g. open source) have both been very successful.

    I don't think that there are many subject areas for which that is true. Perhaps scientific research, but I struggle to think of others.

    In any case, and to answer your question more directly, I believe that there's room for both philosophies in software. Things that were once cutting edge become foundational and free, or nearly so. And people are motivated to create novel things of commercial value that build "on the shoulders of giants".

  • mystraline 13 hours ago
    Thats easy.

    Its costs time to make a software thing once. Then once done, copying is basically 0 cost, and storage is near 0 cost, and bandwidth is near 0 cost.

    If I make furniture, it costs resources for each thing I make. I can't copy a sofa 10e6 times for negligible costs.

    Its also why "Shit as a service" is so popular in the commercial world. Selling the tool is a fools game - you sell access to a rental of the tool. Then you get recurring income, and can fuck over people who are firmly in your ecosystem.