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.

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).

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