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Canonical courts financial contributions

By Jake Edge
October 10, 2012

Financial contributions are part of many free software projects. Users can, and do, contribute in lots of different ways, but helping the project keep the lights on and, perhaps, even cover some development time, is fairly common. Financial donations may also be used to champion certain features for a project; by ponying up some money, the donor may get some input into the direction of the project. The latter seems to be part of the motivation for Canonical's recent push to more prominently feature—but not require—financial contributions as part of the desktop download process.

On October 9, Steve George, Canonical's VP of Communications and Products, posted a message to the company's blog that described the change:

Today, we're making it easier for people to financially contribute to Ubuntu if they want to. By introducing a 'contribute' screen as part of the desktop download process, people can choose to financially support different aspects of Canonical's work: from gaming and apps, developing the desktop, phone and tablet, to co-ordination of upstreams or supporting Ubuntu flavours. It's important to note that Ubuntu remains absolutely free, financial contribution remains optional and it is not required in order to download the software.

[Contribution screen]

It's a bit surprising to see a large, company-backed distribution looking for financial contributions, but George made it clear that there has always been a way to do so, "albeit in a not-easy-to-find spot on our website". He said that users have been asking for a simpler way to contribute money, so Canonical was making one available. Now, clicking through to a desktop download page brings up a web application (seen at right, click to see a larger version) that allows contributions of up to $125 in each of eight categories.

According to community manager Jono Bacon, the application was inspired by the various Humble Bundles, which allow people to pay what they wish for computer games or ebooks. While the sliders used by Humble Bundles allow users to choose the amount to pay the authors, charities, and the company, the sliders in the Canonical application allow a choice of features contributors would like to put their money toward. The possibilities are:

  • Make the desktop more amazing
  • Performance optimisation for games and apps
  • Improve hardware support on more PCs
  • Phone and tablet versions of Ubuntu
  • Community participation in Ubuntu development
  • Better coordination with Debian and upstreams
  • Better support for flavours like Kubuntu, Xubuntu, Lubuntu
  • Tip to Canonical – they help make it happen

To aid the user in evaluating how much to give, the application suggests products that would cost roughly the same as the total contribution. Those range from a "grande extra shot mocha latte chino" at $2, through a "pair of LP Matador bongo drums" at $100, up to "an eight year-old dromedary camel" at $1000. Visitors can either choose their donation level and contribute via PayPal, or click through a link to go on to the download.

While Canonical undoubtedly does a great deal of work for the benefit of millions of Linux users, this is a rather unconventional approach. It is a little hard to imagine that it will generate a significant revenue stream, at least for an organization the size of Canonical. But the real value to Canonical (and by extension, Ubuntu) may be in the feedback it gets from users.

The categories for features are fairly broad, but a consensus among users on one (or a few) of them is certainly useful information. The fact that those users are willing to pay something to make that vote makes the data all the more interesting. There have been persistent complaints that some of the other Ubuntu flavors, Lubuntu, Xubuntu, Kubuntu, and so on, have lacked for financial backing in comparison to the number of users they bring to the table. This effort would give those flavors an opportunity to send a message, for example.

It would be great if the community were to get some visibility into the contributions. Canonical may be understandably loath to give out direct financial information, but there are other ways to do the reporting that would still benefit both the Ubuntu community as well as the larger FOSS ecosystem. Information on the "votes", perhaps as percentages of the number and dollar amount of the contributions, would be useful. That would help Ubuntu see places where more effort is desired as well as identifying potential trouble spots for other distributions and projects. According to George, the company is working on a schedule and format for reporting on the contributions.

Canonical has pursued other non-traditional revenue sources in the past, so this could just be another. With enough different revenue streams, even if some are fairly small and unpredictable, the company could reach a profitable state. That can only be a good thing for the long-term prosperity of not just Canonical, but the Ubuntu distribution as well. Ubuntu has millions of users worldwide and the Linux ecosystem is richer for its presence, so anything that helps its continued existence is definitely a net positive.


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Canonical courts financial contributions

Posted Oct 11, 2012 0:55 UTC (Thu) by zonker (subscriber, #7867) [Link]

Pity "develop/improve desktop applications" is not on the list...

Canonical courts financial contributions

Posted Oct 12, 2012 15:57 UTC (Fri) by obrakmann (subscriber, #38108) [Link]

I guess that falls under the first bullet point.

But I'm missing Ubuntu Server...

Also: Paypal :(

Canonical courts financial contributions

Posted Oct 11, 2012 8:07 UTC (Thu) by hadess (subscriber, #24252) [Link]

Asking for donations isn't a problem, even for a for-profit company. The problem is that they set expectations of how the money will be used, with no way to verify it. Saying that Ubuntu is a community project whilst funnelling the money generated directly by it [1] to a for-profit entity is certainly contradictory to me.

I hope they don't need that money to pay for my friends' salaries.

[1]: The aforementioned donations, the Amazon referral system, the Magnatune referrals, etc.

Prior example

Posted Oct 11, 2012 10:16 UTC (Thu) by eru (subscriber, #2753) [Link]

Another distribution that tried this is Mandriva (starting when they were Mandrake), with their fee-based Club membership. This had some minor perks, like special downloading servers. That example case did not turn out too well in the end, forums often had people complaining they were not getting their money's worth. And it did not save Mandriva SA from bancrupty. They eventually made the membership free. (I used to be a member, until the end, and was not one of the complainers since I felt I was supporting a worthy cause)

Prior example: Mandrake

Posted Oct 18, 2012 22:27 UTC (Thu) by Duncan (guest, #6647) [Link]

Good parallel, tho hopefully it doesn't turn out the same...

There's an interesting dynamic, however, that I think many distros and others in the community considering this income option may not make enough allowance for.

At least here, I know I started on Mandrake (even buying the CDs) and was happy enough with it. Then I started running cooker with the idea of ultimately contributing, which of course meant downloading early versions well before they showed up in a proper release,and that too was great.

But then they came up with the Mandrake Club, and the relationship went sour for me, not because of the contribution, which I wanted and intended to make, but because of the inevitable "OK, I'm paying money for this now, is it worth that money to me?" reevaluation.

Basically, I started looking at where my money would go, and what they were offering for it? What were they offering? Primarily two things: (1) Snail-mail delivered ISOs for (to me on cooker) now long outdated versions that did me no good. (2) Access rights to proprietary servantware that for me was a net negative, since I had my fill of disregard of my rights on MS, and after a lot of personal time and energy spent learning and switching to Linux after a decade on MS, I simply wasn't interested in fastening that EULA leash around my neck and handing it to servantware masters yet again! Others might be fine with that and I was OK with Mandrake working with servantware for them, as long as I wasn't going to be contributing to it, but once they started asking me to contribute to THAT, it was an ENTIRELY different ballgame.

The club was also NOTICEABLY 32-bit x86 focused at a time when I was primarily interested in the new amd64 arch. They had amd64 available, but it was primarily server focused (with only server-targetted ISOs available for purchase and that not directly tied to club) and I was desktop/workstation. Unfortunately and probably as a result of the 64-bit server focus, amd64 cooker was based on x86-stable, so it was often more outdated than 32-bit stable, and the 64-bit ISOs available for purchase were stable amd64, even MORE outdated, IIRC up to six months behind what I'd actually be running which was already six months outdated on a lot of packages compared to x86 cooker, by the time I got delivery. Further, much of the price of the the amd64 ISO purchases would obviously go to shipping something so outdated on delivery it'd be about useless, so rather less of my money (as compared to the 32-bit focused club) would actually do anything for Mandrake.

So I spent some time trying to figure out how to contribute a similar amount in a way that would support reasonably current FREEDOMWARE amd64, and couldn't find any, at least with anything similar in terms of contributor-benefits. Nada. This company simply wasn't interested in providing product I was interested in, even tho I had the money in the bank and budgeted to Mandrake, and the check ready to write.

As I said, all this didn't really matter to me when I was simply downloading it for free and working on cooker, contributing what I could and planning to do more as I learned. But once money entered the picture, value-for-money entered the picture as well, and things looked MUCH less rosy, especially as I could see the company simply wasn't offering the products I was interested in.

It also sensitized me to issues I'd have otherwise overlooked, like the fact that they dropped quite behind (IIRC one 3.x version plus a 3.x.y) on kde around that time -- in 32-bit cooker, let /alone/ 64-bit, which due to being based on 32-bit stable, would be even FURTHER behind by the time 32-bit cooker actually caught up. As long as I wasn't planning on paying anything for it, only contributing to cooker basically as a hobby, I was unhappy with it, sure, but no big deal. Once they introduced the whole money aspect to the picture tho, even tho I hadn't actually paid (beyond my original off-the-shelf CDs purchased a couple years earlier by then) yet, I fully intended to, and that kde delay began to look a LOT worse!

So I ended up switching to Gentoo/amd64, with actually current kde, taking the amd64 system I had purchased with the intent of using as a tool for my Mandrake contributions with me. Turns out a community-based distro was a better match for me anyway, as was the build-time customizability of gentoo, tho the latter has little to do with the current topic.

Certainly in the Mandrake case, I expect this sort of effect wasn't really accounted for. They expected to get some level of money coming in, but didn't anticipate that introducing the whole money aspect would force user reevaluations and a higher demand for product tailored to specific interests such as mine, such that it would drive down satisfaction levels and ultimately drive off community contributors even if they could still continue with the free-of-cost product as they had been.

Ubuntu is of course a different product from a different company at a different time, so how parallel the situations are remains to be seen. They do seem to have a more centralized top-down decision structure and seem to target a user base that's not particularly interested in making that sort of decisions for themselves anyway, at least for the core ubuntu, so it may well be that they don't have this aspect of the community to drive off. But to the extent that they do, I hope that they considered the effect that asking for money contributions has on the willingness of the user to settle for a less-than-perfect match for their use-case, even for people who are already contributing in non-monetary ways but get the product free-of-cost, because the resulting drive-down of this aspect of community participation certainly didn't do Mandrake any good. But if there's little or no community of that type there anyway and/or they simply don't care about what is there, as may well be the case with Ubuntu as a commercial entity, then it could well be a net gain.

As the saying goes, time will tell...

Duncan

Product suggestions

Posted Oct 11, 2012 12:29 UTC (Thu) by pboddie (subscriber, #50784) [Link]

To aid the user in evaluating how much to give, the application suggests products that would cost roughly the same as the total contribution. Those range from a "grande extra shot mocha latte chino" at $2, through a "pair of LP Matador bongo drums" at $100, up to "an eight year-old dromedary camel" at $1000.

Does it get these product suggestions in real time from Amazon?

Product suggestions

Posted Oct 11, 2012 14:02 UTC (Thu) by rvfh (subscriber, #31018) [Link]

Amazon sells camels? Wow, can't wait for them to sell ponies...

Product suggestions

Posted Oct 12, 2012 8:28 UTC (Fri) by cmccabe (guest, #60281) [Link]

Little do they know, they're about to get a flood of camel donations from users with a twisted sense of humor...

Canonical courts financial contributions

Posted Oct 11, 2012 19:46 UTC (Thu) by cmorgan (guest, #71980) [Link]

Would love to see the idea of pledging used by Canonical. User reports issue X and people can pledge some amount of money that is paid when the issue is resolved. Canonical might not fix one bug over another but at least there will be some, albeit minor, incentive to fix one issue over another.

Canonical courts financial contributions

Posted Oct 22, 2012 10:30 UTC (Mon) by erwbgy (subscriber, #4104) [Link]

LyX does something similar. They allow general donations but also donations for specific features to be implemented.

Canonical courts financial contributions

Posted Oct 11, 2012 20:09 UTC (Thu) by naoliv (subscriber, #21066) [Link]

It's missing a Tip to Debian option.

Canonical courts financial contributions

Posted Oct 12, 2012 14:55 UTC (Fri) by mina86 (subscriber, #68442) [Link]

Yeah, I thought the same thing. Arguably the money should go to the thousands of projects Ubuntu builds upon, which don't have such a prominent way of asking for donations.

Canonical courts financial contributions

Posted Oct 16, 2012 16:13 UTC (Tue) by debacle (subscriber, #7114) [Link]

+1 (Note: I'm a DD) However, I would not use PayPal anyway.

Canonical courts financial contributions

Posted Oct 18, 2012 22:53 UTC (Thu) by TRauMa (guest, #16483) [Link]

Donations to Debian are deductible, doing it via Canonical would be weird.

Canonical courts financial contributions

Posted Oct 17, 2012 21:02 UTC (Wed) by zooko (subscriber, #2589) [Link]

I find the headline "Canonical courts financial contributions" kind of weird, because when I donated money yesterday, my understanding was that almost all of what I donated was going to Ubuntu, not to Canonical. I *did* leave the $2 settings to donate to Canonical, but still, around 95% of the money I donated was not intended to go to Canonical.

So, is your headline a bit misleading? Or have I been tricked?

Is there some publicly visible accounting of Ubuntu's finances?

Canonical courts financial contributions

Posted Oct 18, 2012 22:56 UTC (Thu) by Duncan (guest, #6647) [Link]

There is the well-known principle, "money is fungible". This would seem to be something Canonical, as the corporate funder behind Ubuntu, is counting on.

Thus, even if you're not donating directly to Canonical, to the extent that Canonical can reduce Ubuntu funding due to these donations, you're still donating to Canonical. Only to the extent that Canonical has agreed not to cut back their own funding (or supply of services and product in kind) to these entities, does the earmarking have any real effect, and there's nothing in the article or other coverage I've read indicating that to be the case, here. (Of course, there'd need to be public reports on this along with independent auditing to be sure, as well.)

Thus, the real effect of the donations would appear to be two-fold:

1) They serve as a very real indicator to ubuntu/canonical of what people care enough about to be willing to pay for and to what extent, even when not absolutely required. That's seriously valuable information right there, and to the extent that it informs canonical's future direction of its own funds, could in theory not only counteract the fungibility issue, but actually boost the effects of donations several times over. (A well-known example of this in fund-raising circles is the contribution-match drives that often occur. These boost both excitement/PR level therefore driving larger contributions, AND the effect of any individual's contribution.)

2) Obviously, there's more money overall coming in, so more money to spread around, fungible tho it may be.

But, unless otherwise specifically stated (and as I've said, I've no indication that's the case, tho I'm following this a bit more remotely than you might be as being a gentoo/kde user, I've no direct personal stake in it, but there very well MIGHT be such statements that I'm simply not aware of), really, a donation to ubuntu must be taken as ultimately a donation to canonical, because money IS fungible, and to the extent that the various bits of ubuntu support themselves via donations and etc, canonical does have the flexibility to invest the money it would otherwise spend on them, elsewhere.

Duncan

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