Ubuntu and paying software

Ubuntu, the same as the other Linux distributions, is free and according to their statements always will be. Because of the philosophy behind open source software we are used to not just having a free operating system, but also free programs in the Ubuntu Software Centre. This software centre is a predecessor to the App Store with thousands of free applications. That’s not all though. With the recent overhaul of the Software Centre we are starting to find some programs with a price tag beside the title.

Ubuntu Making Money

Ubuntu is a brand (owned by Canonical) that brings one of the best and more popular Linux distributions. This company is responsible for making this software available to non-expert users, and to bring the name Linux into the general audience.

Although originally Canonical was founded by millionaire Mark Shuttleworth, they are working to make a profit with several revenue streams alongside Ubuntu

They offer a support services mostly to business as well as custom distributions.
They also offer Landscape a management tool to monitor several Ubuntu installations part of Canonical’s Ubuntu Advantage support service,
Contracting their services to businesses, helping in different projects or companies like Chrome OS and several projects with Dell
Online file storage like Dropox called Ubuntu One
An online music store called Ubuntu One Music Store (without DRM)
The Canonical Store where they sell physical Ubuntu branded items like tshirts.
Closed-source projects that use Launchad, a software collaboration platform.
Ubuntu Software Centre's paid section trough which developers can sell their software.

Selling Software

The Ubuntu Software Centre is becoming a hub to find, offer and sell different kinds of software from full featured apps, to games and online services. Developers can offer their programs and decide the price they want to ask for. If they decide to sell their software a percentage of the sales will go to Canonical. It’s free to sign in and offer free programs, even if the programs have different revenue system:

Although Ubuntu is open source, as well as many of the offered apps, developers can distribute proprietary software.
Canonical retains a transaction fee of 20% after tax if the publisher chooses a global price to sell their application.
Open source can also be sold through the program with a specific set of restrictions.
The program doesn't have any native DRM protection and they not believe in this formula, although they allow developers to use their own rights management system.
Developers can offer not only apps, but also expansion packs and addons.

Recently and after a huge debate, Paypal was added as one method for the payments. This will help make the whole process simple, although Ubuntu is also developing their own Canonical Payment Service project called Ubuntu Pay.

Revenue Formulas for developers

Canonical is supporting several different kinds of formulas for revenue, while it’s advocating against other ones, like DRM and other right management systems.

Selling one source software: Open source doesn't imply that you can't sell your software, but what you are giving is more than just the application and the client can modify and transform their software. So, in a way you are giving much more.
Selling Proprietary Software: Canonical is not against this kind of software, but in the Ubuntu distribution philosophy they won't bundle this kind of software with Ubuntu.
Expansion packs and addons: The expansion packs, addons, updates and other paid services is one of the methods to make profit with an open source (and free) software.
Online Service: One of the most effective formulas right now, where the free program is just the vehicle for an online service like Skype or Dropbox, some times it has a free option and a paid one that brings more options.
Advertisement: This is another formula used a lot, where the free services is paid with the advertisement showed to the user. Nevertheless, many programs will be abandon if the ads become overwhelming.