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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Mozilla bets on fundraising to diversify Google revenue

By | October 10, 2011, 10:11am PDT

Summary: Mozilla faces numerous challenges—develop faster, mobile tools and revenue diversification—but the most notable point may be how the organization is stepping up its fundraising game.

Mozilla’s 2010 financial statements reveal an organization still too dependent on Google search revenue, but one that is investing heavily to increase its online fundraising efforts. Mozilla still expects to get most of its revenue from search deals, but fundraising is a down payment on diversification.

The non-profit organization generated $21.7 million in 2010, down from $26.5 million in 2009. Total revenue and support for 2010 was $123.2 million, up from $104.3 million, according to its annual report.

As CNET News’ Stephen Shankland noted, Mozilla’s results aren’t so shabby. However, Mozilla’s search deal with Google is up for renewal in November. Google’s Chrome browser is gaining market share, but the state of Firefox likely points to a renewal. The Firefox search box has generated anywhere from 85 percent to 90 percent of Mozilla revenue in recent years.

In an FAQ, Mozilla noted that “we have every confidence that search partnerships will remain a solid generator of revenue for Mozilla for the foreseeable future.” Mozilla also touted search deals with Bing, Yahoo, Yandex, Amazon, Ebay and others, but the reality is most users go with Google.

Mozilla faces numerous challenges—develop faster, mobile tools and revenue diversification—but the most notable point may be how the organization is stepping up its fundraising game. Mozilla has hired experts who know how to raise money online. These hires, along with the infrastructure that goes with them, could allow Mozilla to diversify its revenue base.

For now, public support is roughly 14 percent of Mozilla’s revenue, but it could move the needle with better fundraising. Here’s the notable snippet from Mozilla’s tax filing:

The other notable item is the pay packages that Mozilla execs get. Those packages aren’t too shabby for a non-profit either.

Related: Mozilla posts 2009 revenue surge: Google diversification issue remains

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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RE: Mozilla bets on fundraising to diversify Google revenue
the.nameless.drifter 11th Oct
@Michael Alan Goff

They were forced into that after the wave of bad publicity due to the arrogance of Asa

Its nice that there is now a proposal but Mozilla still have a ways to go to fix a fractured relationship.
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Everyone should use FireFox
x I'm tc 10th Oct
Not just because it is the best -- by many measures it is and by many measures it isn't -- but because it is fantastic software released by a not-for-profit organization who's reason for being is to improve the Internet for all.

And let us make no mistake, they have been staggeringly successful. Using Mozilla's products will continue this legacy.

That is worth supporting.
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Everyone should use what they want
Michael Kelly 10th Oct
@jdakula

The problem with everyone using only one browser is that the programmers become complacent and it stagnates. The reason why Firefox even rose to prominence is because IE was stagnating and Firefox was young and fresh and willing to give users what they wanted. You want choices so that if one product goes down a path a certain segment of users do not like (like say an insane release schedule that affects the stability of web based business solutions) there are other choices that can be made. And when one product loses enough market share, it either wises up and corrects the problem or it dies and another comes along to take its place.

Now I do use Firefox and will continue to do so in the foreseeable future, but I will not try to convince anyone that just because this solution works best for me that it will work best for them. It may, but if not I would not shy away from recommending another solution if it became apparent that Firefox does not work for them.
@Michael Kelly

True in the corporate space, not so sure it works for FOSS. When the lines get blurred, as by for-profit-backed OSS projects, it is really hard to figure out.

For instance, this whole "insane release schedule that affects the stability of web based business solutions" is a product of the other big open-source browser doing just that and Mozilla following suit. That is *not* an example of competition working.

Furthermore, Firefox was most innovative when there was *no* competition. When IE stagnated, the energy of all Web browser developers was behind Mozilla. Firefox itself is a fork ("Phoenix") from the original Mozilla browser project which continues under the name SeaMonkey. This demonstrates how, if a critical mass of user-programmers become dissatisfied with the direction of Firefox, they can fork it again and, if their vision proves the right one, the Mozilla foundation will follow.

If there is some legitimate reason to use another browser (like, "I'm at work and they make me use IE") well then of course that's fine. But all things being equal -- scratch that, all things being close enough to equal -- it is better to use the product with a positive mission than the one without. Note that this is nothing to do with FOSS, honestly...I'd use Firefox if it were closed source over, say Chrome, because I agree with Mozilla's idea of an open, standards-based Internet for all vs. Google's idea of the browser as a platform of serving up proprietary services.

Look at Weave Sync, for example. I have a password associated with it that prevents even the folks at Mozilla from seeing what I'm sinking. Google, on the other hand, mines that information to use "against" me. That represents a profound and important distinction in what these two companies want from their users.
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Maybe they should try soliciting some of their enterprise users for donations? Oh wait they don't matter according to Mozilla
@the.nameless.drifter

If they didn't matter, they wouldn't be making the ESR. If they didn't matter, they wouldn't have put together that nice enterprise study.

Stop being proud of your ignorance.
0 Votes
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@Michael Alan Goff

They were forced into that after the wave of bad publicity due to the arrogance of Asa

Its nice that there is now a proposal but Mozilla still have a ways to go to fix a fractured relationship.

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