[HN Gopher] I Just Hit $100k/Yr on GitHub Sponsors (2020)
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       I Just Hit $100k/Yr on GitHub Sponsors (2020)
        
       Author : tosh
       Score  : 241 points
       Date   : 2022-04-19 16:30 UTC (6 hours ago)
        
 (HTM) web link (calebporzio.com)
 (TXT) w3m dump (calebporzio.com)
        
       | orliesaurus wrote:
       | Working on opensource is fun if you're paid to work for it!
       | 
       | What's not fun is being an unpaid open source maintainer that has
       | to deal with toxic "open issues" by ungrateful people on the web.
       | 
       | I wish github would have a system where you need to donate $1 to
       | open an issue and it's down to the maintainers to decide whether
       | it's a good issue or claim the $1 if the issue opened is kinda
       | toxic.
        
         | quickthrower2 wrote:
         | You could write a bot to do that.
        
         | capableweb wrote:
         | What's fun with open source is that even if you're paid or
         | unpaid, you owe people absolutely nothing and you can close
         | whatever issue you want, for whatever reason you want. Tired of
         | dealing with toxic issues? Turn off issues and let people fix
         | their own shit.
         | 
         | No one is forcing you to accept issues, toxic or not, same goes
         | for patches. In open source, you create your own project and
         | you run it however you want.
        
       | jph wrote:
       | This is brilliant and congratulations. You're showing exactly how
       | to users can fund open source projects, and also how developers
       | can create better reach. Kudos.
        
         | samspenc wrote:
         | Yeah I'm surprised this post doesn't have more upvotes. A rare
         | positive story in the open source world, where the author is
         | able to generate enough revenue to compensate for quitting
         | their full-time job and work on their open source project full-
         | time! Plus he has fully laid out the template for how he did it
         | and other open-source maintainers can do it too. This isn't one
         | of those "get rich quick" stories / ads you see on Youtube,
         | it's actually a fully self-sustaining model for open source
         | that the author has lived out.
        
           | samspenc wrote:
           | No longer able to edit my original comment but just wanted to
           | note that I'm glad to see this post has picked up more
           | traction (and has a lot more upvotes) compared to when I made
           | my comment.
        
       | motoxpro wrote:
       | Absolutely genius. The three phases are so great. Very very cool,
       | non exploitive, and smart. Sponsorware concept is new to me and
       | extremely awesome.
        
       | pbowyer wrote:
       | Your reminder that if you live in Europe and want to stay on the
       | right side of your tax authority then what Caleb did is likely
       | breaking the law in your country without some extra steps.
       | 
       | Why? If you offer incentives in return for sponsorship (e.g.
       | extra videos) this turns it from a donation to a business
       | transaction. That has tax implications - and you need to know
       | which country the people sponsoring you live in to bill the right
       | tax.
       | 
       | When I last checked GitHub wasn't doing this automatically
       | (https://twitter.com/rafaelcodes/status/1448987494553473024) so
       | it adds a bunch of complexity for you to keep track of.
        
         | newaccount74 wrote:
         | The easiest way to do something like this as a European is to
         | use something like MyCommerce to sell your stuff. They take
         | care of VAT for you, and you don't need to do anything. Of
         | course, they charge a percentage of your revenue for the
         | privilege.
         | 
         | (I've tried Fastspring too, but I vastly prefer MyCommerce.
         | MyCommerce sends you proper invoices every month that make tax
         | reporting trivial for EU businesses. With Fastspring you have
         | to export lots of CSV files and do lots of work in Excel to get
         | the data you need)
        
       | 12907835202 wrote:
       | This sounds less like making money from open source alone and
       | more about running a subscription video tutorial service.
       | 
       | The guy from laracasts has lots of open source code on GitHub but
       | it would be weird to say he's making money from open source. He's
       | making money selling a subscription to a video tutorial website.
       | 
       | The author has just swapped out Stripe or another payment gateway
       | for GitHub Sponsors.
       | 
       | I'm not sure how this is any different from Laracasts or any
       | other tutorial site other than the fact that he does make some
       | money directly from the open source, but it's not enough...
        
         | outcoldman wrote:
         | Even on the enterprise level, all the open source companies
         | such as Elastic Search or MongoDB don't make money on "open-
         | source", but enterprise subscriptions, which would include
         | support and some guarantees on the product, including stupid
         | acceptance of your PR for fixing some bugs. And Amazon,
         | Microsoft, Google use their open source to bring customers to
         | cloud or sell some other products.
         | 
         | People don't like to pay for what is "free". Have you seen any
         | street performance? The artists have to walk to every viewer
         | and look them in the eye to ask for money, they have to keep
         | some money in the hat in specific bills so people around kind
         | of understand how much to pay, they have to keep their own
         | viewers who definitely put money in the hat all the time, so
         | others feel the pressure.
         | 
         | That is the reason why I personally don't want to run any open
         | source projects. I just don't like to ask people. I would never
         | want to ask anybody to contribute, I don't want to find a way
         | to make it profitable. Not saying that it is bad, I just feel
         | so much pressure for asking people to do something. To help, to
         | support, to try to sell something to them.
         | 
         | I am running pretty much 2 companies with close source
         | software. One is very successful, which pay my bills, another
         | one is more like a moonlight project, that makes around $1k to
         | $2k a month (currently contribute most of that to various
         | foundations to support Ukraine). And for the last 5 years I got
         | used to being ok for blame not to write any open source
         | projects. I personally don't use much open source software
         | myself. Not for the reasons I don't want to, just because I am
         | ok to pay for quality. And I don't have time to review some
         | libraries, when I can just write something in a day or two.
         | 
         | I don't sell my software, I publish on Reddit, and other
         | channels about something I do, run promotions, but don't talk
         | to customers to sell anything. All my software is easy to
         | download and try, and purchase without talking to me. But if
         | you are my customers, I would be happy to help you.
        
           | rglullis wrote:
           | If people can only get the software by buying it, you are
           | pretty much "asking" them to do something. Just because you
           | are not interacting with them does not mean you are not doing
           | sales.
        
         | TAForObvReasons wrote:
         | https://news.ycombinator.com/item?id=23618363 made the same
         | observation 2 years ago:
         | 
         | > The vast majority of developers don't make any significant
         | money. The outliers that do use the platform as a general-
         | purpose payment processor. They take donations, but they also
         | sell things. The line between isn't terribly clear
        
       | vmception wrote:
       | I've been watching educational screencasts for a while, its an
       | interesting concept. You sprinkle in your own tools into a
       | general tutorial about something else, and the whole crowd uses
       | your tools.
       | 
       | Its also being abused in some areas on youtube right now with
       | people deploying malicious code from the tutorials. The code
       | isn't hosted on github its hosted on IPFS
        
       | ausbah wrote:
       | this needs a 2020 tag?
        
         | dang wrote:
         | Yes, added. Thanks!
        
       | tyingq wrote:
       | That's awesome. Not knocking it at all, but for others, comparing
       | the $100k from GitHub sponsors to a corporate-type salary isn't
       | always straightforward. You would have to consider a lot of
       | things, especially in the US. Things like 401k matching, cost of
       | health insurance for a 1-man company versus as an employee,
       | vacation and sick time, and other benefits. Oh, and self-
       | employment tax (ouch). And a few other items like carrying your
       | own liability insurance if needed, other expenses you might have
       | as a freelancer, etc.
       | 
       | Again, not diminishing the accomplishment at all...very
       | impressive.
        
         | dpweb wrote:
         | Some tips.. As I've made up for loss of benefits, etc. in other
         | ways after going self-employed. I've always done my own taxes
         | so was comfortable with that aspect.
         | 
         | - Everything is deductible, your computer, home work space,
         | etc.. They have phased out most deductions for employees.
         | 
         | - Max your 401k if you can (~55k Solo 401k) - this will make up
         | for SE tax AND reduce your AGI so you can be less likely to be
         | income phased out of certain benefits.
         | 
         | - Move to a state income tax free state, if feasible. Saved me
         | $10k/yr.
         | 
         | - Look into short-term health plans. They aren't ACA, but have
         | very desirable terms. For instance, marketplace plan for me
         | 8700 deductible, 16000 out of pocket max was $550. Short term
         | plan $2500 deductible $2500 out of pocket max (just no ACA
         | protections/benefits) was $330 and is ALSO tax deductible, so
         | more like $240. Networks are similar for instance mine is
         | United Healthcare national network.
        
           | mandeepj wrote:
           | > Move to a state income tax free state
           | 
           | It's not binary. State has to get its revenue from somewhere,
           | so then you will pay higher property tax and/or sales tax
        
             | devoutsalsa wrote:
             | For example...
             | 
             | As the "show me" state, Missouri does not tax the income
             | generated by Twitch hot tub streamers and OnlyFans content
             | creators, but the viewers pay an ogling tax based on
             | tracking eye movements.
        
           | outcoldman wrote:
           | Also move to North Carolina and purchase a house for 200k
           | instead of 2M in Seattle area ;)
        
             | mindcrime wrote:
             | Sorry, North Carolina is full. We're not taking any new
             | incomers. Please consider Florida, which has the added
             | benefit of "no state income tax."
        
               | s5300 wrote:
               | Florida is a never. They're truly trying to completely
               | dismantle public education.
               | 
               | In a lot of parts (suburbs & such) people will ask
               | anybody new they notice what church you go to. If your
               | answer is anything other than a church you actually go
               | to, word will spread pretty quickly & they'll genuinely
               | harshly look down upon you. This is overwhelmingly upper
               | middle aged to elderly, but some of their kids follow
               | suit.
               | 
               | It's a fuckin swamp. Humans were not very made to live in
               | swamps.
               | 
               | Without trying to sound more xenophobic than this already
               | does - the Cubans need a generation or two more away from
               | Castro... some of them are quite openly insane about
               | perceived issues that don't actually exist in our
               | country.
               | 
               | Pipeline to prison is very real & social safety nets are
               | non existent. It very much pushes people to either kill
               | themselves or become very... unfortunate people to find
               | yourself having to deal with. That said, most humans
               | don't go the route of killing themselves (a good thing)
               | so you have a lot more of the latter.
               | 
               | Police like to think they're Wild West cowboys & they get
               | the authority to execute you with no repercussions faster
               | than barbers get licenses to cut hair. Training with
               | their weapons less time than a boy scout took to get a
               | (weapons related) badge.
               | 
               | Sorry for the rant. Florida is one of the rudest
               | awakenings for many who move there with happier ideals in
               | mind. Much worse than a lot of Texas.
        
               | queuebert wrote:
               | Also, free Hurricanes and alligators.
        
               | andrew_ wrote:
               | Sorry, Florida is full. We have lots of hurricanes and
               | gators and bugs and crazies. Please retreat north, which
               | has "seasons" and mountains and things. I hear the
               | hipsters up there make great beer.
        
               | jkepler wrote:
               | Florida also has pythons, moving north from the
               | Everglades.
        
               | HeyLaughingBoy wrote:
               | The pythons are there to keep the alligators from gettin'
               | too uppity.
        
             | spiffytech wrote:
             | North Carolina won't have cheap homes for long. Housing
             | prices are already skyrocketing, and several big tech
             | companies are building new offices in the Triangle. NC is
             | going to befall the same fate as Austin and every other
             | once-affordable area that tech moved into.
        
         | samwillis wrote:
         | Worth noting the trajectory of that chart though, if he keeps
         | up the momentum he could double his revenue from sponsors this
         | year.
         | 
         | Edit:
         | 
         | Just noticed that it's a post from 2020, he now has 823
         | sponsors vs 535 then. So assuming the same average sponsorship
         | that takes him to $173k/year.
        
         | dsmmcken wrote:
         | the author has written on exactly that topic in a follow up
         | post: https://calebporzio.com/making-100k-as-an-employee-
         | versus-be...
        
           | armoredkitten wrote:
           | That's a good follow-up, with the quibble that the math is
           | wrong -- he added $7.5k for insurance as a benefit for a
           | salaried employee, then also subtracted it as an additional
           | expense for being self-employed. So he double-counted it.
           | Which is odd, given that he didn't use the same logic when
           | talking about the other benefits he lists, like vacation,
           | 401(k) matching, and equipment. Either he should have
           | subtracted all of those from the self-employed amount, or
           | added them all to the salaried amount, but not both.
           | 
           | So really, the difference in take-home pay should be $98,058
           | vs. $77,842. Or to put in terms of gross revenue ("Total
           | Income", as he puts it), the comparative target number for
           | self-employed people would be $132,371. It doesn't negate his
           | overall point, I just figured I'd mention it.
        
             | tyingq wrote:
             | Good catch, though any decent health insurance you can get
             | on your own would be quite a lot higher than $7.5k/year.
             | What I currently pay ~$500/month for via work used to be
             | $2k+/month when I was self-employed. So in real-life it
             | wouldn't always be a wash.
        
               | jjav wrote:
               | > Good catch, though any decent health insurance you can
               | get on your own would be quite a lot higher than
               | $7.5k/year.
               | 
               | I mean, my salary contribution to paying the company-
               | sponsored health plan is ~$2K/month, so 14K/year. That's
               | with my employer paying the other ~half of the cost!
               | 
               | Health insurance in the USA is brutal.
        
           | tyingq wrote:
           | Oh, yeah, that's perfect, and hits my list plus a few more.
        
         | melony wrote:
         | It is also a lot easier to get cancelled and deplatformed.
         | There needs to be the equivalent of a golden handcuff/insurance
         | for crowdfunded content creators.
        
       | onion2k wrote:
       | ( _I don 't want this to come across as overly negative but it
       | might. That's not my intention._)
       | 
       | There are many reasons why quitting your day job and growing a
       | presence that will get you sponsorships is worthwhile, and I am a
       | strong advocate for paying open source devs who maintain the
       | packages you use. However, if you're thinking of trying to copy
       | Caleb's success, remember that it'll take 28 years before he'll
       | have earned more than he would have if he'd kept his $90k/year
       | job.
       | 
       | Arguably a talented dev will _never_ earn more than if they 'd
       | had a job instead. Open source is a route to working on something
       | you love, but you _will_ be leaving money on the table to do it
       | unless the landscape changes a lot.
       | 
       | There is still a ton of change necessary in the open source model
       | before it becomes a viable 'job' for most people.
        
         | throw03172019 wrote:
         | Curious how you got to 28 years? Can you help explain? Thanks!
        
           | onion2k wrote:
           | He cut his salary by $70k for 4 years ($280k 'lost'), and now
           | he's earning $100k which is $10k more than the $90k he was
           | on. It'll take 28 years to make up the lost salary.
           | 
           | I mean, the math is very much simplified. People get raises,
           | and change roles, and there's tax to deal with, and jobs have
           | benefits, etc. The core point is that you'll probably earn a
           | lot more in a job. If you can find one where you're paid to
           | maintain a library you like that's probably better for you
           | _financially_ than trying to get sponsors.
        
             | cestith wrote:
             | This assumes a static number of sponsors, which I doubt is
             | the case. Somewhere else in the thread I read there are
             | currently over 800 sponsors now.
        
               | onion2k wrote:
               | True, but salaries go up too.
        
         | winslow wrote:
         | I think there's a small error in the calculation. The article
         | is from 2020. So looks like he hit 100k about 1 year after
         | leaving his full time job. Using his current sponsor count of
         | 832 and the minimum sponsorship level of $14 he's making
         | $138k/year.
         | 
         | With all that said. There is definitely some survivor bias
         | here. He found a great niche and a appears to already have had
         | an audience which helps tremendously compared to starting from
         | scratch. Not everyone will have the same success experience.
         | 
         | Hoping I can get a similar thing going in the near future.
        
         | Stevvo wrote:
         | If you work on Web3 projects you can easily make a living in
         | the open source model. I did it for a year; there is a large
         | amount of work and funding available on Github through
         | gitcoin.co. and other organizations. If you have the skills you
         | can pick and choose projects at will and get paid handsomely
         | for it.
        
         | jokethrowaway wrote:
         | More than the amount of money, he's trading dealing with all
         | the bullshit rituals of being employed in a company with
         | strangers writing crap on GitHub issues.
        
           | capableweb wrote:
           | Open source is still a better deal, you can just turn issues
           | off and never hear any strangers writing crap in GitHub
           | issues. "Turn off" your ears at a company to avoid crap and
           | you'll be fired quickly.
        
         | [deleted]
        
         | capableweb wrote:
         | "leaving money on the table" is not the same as "becoming a
         | viable job". For many, enough money is enough, and the culture
         | of the workplace, who you work with, what product you're
         | building and more, is more important than the amount of money
         | you earn. At a certain point, you earn enough money monthly to
         | be happy and increasing that some percent but having to work a
         | lot harder (or worse: working on things you don't really care
         | about) is a shitty tradeoff.
        
         | cookie_monsta wrote:
         | > it'll take 28 years before he'll have earned more than he
         | would have if he'd kept his $90k/year job.
         | 
         | Sorry, I'm having a brain fade here. Are you talking about the
         | time required to make up for lost earnings (and ignoring that
         | the current 112k is not a fixed amount the way a salary
         | generally is)?
        
       | ahmedalsudani wrote:
       | +1 brilliant idea!
       | 
       | People willing to put money into your product sends a great
       | signal about its quality/usefulness.
       | 
       | This is a great model for generating useful OSS projects.
        
       | tough wrote:
       | Today I just got hired to work on an open source company. I could
       | not be happier, I may not be rich but I can work at something I
       | love in public, with great team mates, and in an async-remote
       | first company with little to no office politics or mandatory all
       | hands meetings.
       | 
       | It would be 100x times harder for me to get paid via small
       | sponsorships like this.
       | 
       | There's hundreds of YC companies building open source, look for
       | them, apply to the ones you like. Enjoy.
        
         | dsQTbR7Y5mRHnZv wrote:
         | Where would one even begin looking for opportunities like this?
        
           | nwsm wrote:
           | Here are job postings for YC companies:
           | 
           | https://www.workatastartup.com/
           | 
           | https://news.ycombinator.com/submitted?id=whoishiring
        
             | tough wrote:
             | Yup those two are the best ROI for me too. Had to politeley
             | turn down 3 other offers/contacts from last month at
             | workatastartup (didnt pursue them tbh, I hate interviews)
             | 
             | And HN who's hiring has gotten me several contracts/gigs in
             | the past so can vouch for its usefulness too
        
         | tommoor wrote:
         | If you're looking at this want to get paid to work in public -
         | I'd love to hire some TypeScript contractors to work on
         | https://github.com/outline/outline - hmu!
        
           | tough wrote:
           | Hey! I actually looked into contributing into outline
           | (awesome notion FOSS alternative btw) when I had this crazy
           | idea for a DAO/Web3 about research publishing platform
           | (outline + latex support would have been great for that,
           | there was an open branch and looked into it).
           | 
           | Kudos on the great product and project, I am sure it's a
           | great company to work at!
        
       | openthc wrote:
       | This is very awesome! Well done! Seeing how these sponsors can
       | have success like this is inspiring; just wish we weren't blocked
       | (by Stripe) from going this route :(
        
         | tough wrote:
         | Well sometimes you've to work around it.
         | 
         | Why not crypto? Seems pretty good for a problem like yours.
         | 
         | Why not other stripe-like providers which financial
         | backing/integrations aren't run by american prudish double
         | standard will deal with the cartel but not with a legal pot
         | seller banks.
         | 
         | You've mollie which is very stripe-like and from the
         | netherlands, sure there's more possibility they allow you than
         | others.
         | 
         | Stripe is bringing crypto a la coinbase soon, could you use
         | that with them?
        
           | openthc wrote:
           | The Stripe part is baked into the GitHub Sponsors. So while
           | we qualify for one, we are blocked because of the dependency
           | on Stripe.
           | 
           | My industry does not have wide support for crypto payments
           | (which is a surprise); it's still difficult to turn it back
           | into USD (eg: crypto.com, coinbase.com don't allow it).
           | 
           | We do accept some crypto payments but it mostly stays in the
           | crypto space; until get to pay someone else that takes it.
           | It's a PITA for taxes however.
           | 
           | In USA our payments are handled by typical banks/providers
           | (except the one mentioned here). It's not like we're totally
           | blocked.
        
         | rglullis wrote:
         | To add to the sibling comment and to make a shameless plug to
         | my own project: if you want to accept payments with crypto,
         | take a look at Hub20 [0], a self-hosted payment gateway for any
         | blockchain compatible with Ethereum.
         | 
         | I'm working on the upcoming release (hopefully by the end of
         | this month) which will make it a lot easier to add stripe-like
         | checkout systems, so you can have a donation page or even
         | "sell" sponsorship packages.
         | 
         | And yes, to get it on github [1] sponsors was a royal pain.
         | Github/Stripe kept denying my application because they thought
         | I was asking for crypto payments.
         | 
         | [0]: https://hub20.io
         | 
         | [1]: https://github.com/sponsors/mushroomlabs
        
       | dang wrote:
       | Discussed at the time:
       | 
       |  _I Just Hit $100k /year On GitHub Sponsors_ -
       | https://news.ycombinator.com/item?id=23613719 - June 2020 (493
       | comments)
        
       | n-i-g-g-e-r wrote:
        
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       (page generated 2022-04-19 23:01 UTC)