Actually, many free software business plans exist and are documented in white papers. This is just not what rms focuses on (although he clearly supports any way to make a living by writing free software).
You may not understand it but you cannot ignore the fact that companies
working on free software can make a lot of money. Red Hat alone will make
more than one billion dollars of revenue this year (it made 909.3 million
dollars last year)! Any study shows that businesses around free software are
thriving at a tremendous pace (while the rest of the occidental economy is
suffering). Most of these businesses are small and local. As for donations it
sometimes is viable too: The Wikimedia Foundation raises tens of millions
every year. Then, and as rms insists on, most software applications have very
few users. The most common cases is one single user ("custom software") but
groups of people/companies with specific needs can hire free software
developers to fill these needs too.
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