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Github Platform: Building a Business on GitHub

You:

Do you have any concerns when using GitHub to implement such a structure and have a business using their tools, resources, etc.? Or is this all part of the game?

ChatGPT:

"Great question—you’re right to think strategically about building a business on top of someone else’s platform, in this case, GitHub. The truth is, leveraging GitHub’s ecosystem is absolutely part of the game, but there are some key considerations and potential risks you should be aware of. Let’s break it down."

1. Is This Allowed?​

Yes. GitHub actively encourages developers to build tools and businesses on their platform.

Why It’s Part of the Game:​

  • GitHub provides:
    • Actions: A flexible automation tool designed for third-party integrations like yours.
    • Marketplace: A formal place to monetize tools and workflows.
  • Other companies (e.g., Dependabot, CodeQL) have built entire businesses around GitHub integrations.

GitHub’s Terms of Service (TOS):​

  • What’s Allowed:
    • Building custom GitHub Actions and workflows.
    • Selling tools and services via the GitHub Marketplace.
  • What’s Not Allowed:
    • Misusing user data.
    • Violating privacy policies.
    • Exploiting GitHub's infrastructure in ways that harm performance or violate API limits.

2. Potential Risks and Concerns​

A. Overdependence on GitHub​

Risk​

  • Your entire business model is tied to GitHub’s platform.
  • If GitHub changes their pricing, limits, or deprecates features, it could impact your tool.

Mitigation​

  1. Multi-Platform Compatibility:
    • Expand to other ecosystems like GitLab, Bitbucket, or Azure DevOps over time.
    • Example: “We launched on GitHub first but now support GitLab workflows.”
  2. Clear Differentiation:
    • Focus on features that extend beyond GitHub (e.g., analytics, custom templates, AI personas).
    • If GitHub creates competing features, you still offer unique value.

B. Platform Lock-In​

Risk​

  • Relying on GitHub Marketplace for monetization could mean:
    • Revenue Sharing: GitHub takes a cut (currently 5%) of sales on the Marketplace.
    • Limited Control: Your pricing and distribution depend on their ecosystem.

Mitigation​

  1. Diversify Revenue Streams:
    • Offer a direct SaaS subscription outside the Marketplace for larger enterprise clients.
    • Use Marketplace as a discovery tool but push high-value clients to your website.
  2. Own Your Customer Relationships:
    • Collect user emails and build a direct communication channel (e.g., email campaigns).
    • Don’t rely solely on GitHub for reaching your users.

C. API and Resource Limits​

Risk​

  • API Limits: GitHub enforces API usage quotas, especially for free-tier organizations.
  • Actions Minutes: Teams with limited minutes might struggle to fully use your tool.

Mitigation​

  1. Optimize API Usage:
    • Use efficient calls and caching to minimize API consumption.
    • Example: Don’t fetch unchanged files for every PR review.
  2. Educate Users:
    • Highlight how your workflows consume GitHub resources.
    • Example: “Each review uses ~3 minutes of Actions time.”
  3. Expand Functionality:
    • Consider local/offline features that don’t rely entirely on GitHub (e.g., a CLI tool).

D. Privacy and Data Concerns​

Risk​

  • Handling sensitive PR data or exposing internal repository content could raise concerns, especially with enterprise clients.

Mitigation​

  1. Transparency:
    • Clearly state in your documentation that:
      • You don’t store PR data.
      • All analysis happens within the client’s GitHub environment.
    • Example: “Our tool never transmits code outside your GitHub environment.”
  2. Enterprise-Specific Options:
    • For high-security clients, offer an on-premise version to run entirely in their environment.

E. Competing with GitHub​

Risk​

  • If your product gains significant traction, GitHub might build a competing feature.

Mitigation​

  1. Stay Agile:
    • Focus on features GitHub is unlikely to prioritize (e.g., custom personas, integrations with Slack or Jira).
  2. Build a Community:
    • A strong user base that values your tool can keep you relevant even if GitHub creates similar functionality.

3. How GitHub Can Actually Work in Your Favor​

A. GitHub Marketplace​

  • Benefit: GitHub promotes tools in the Marketplace, which can act as free marketing for your product.
  • Strategy:
    • List a basic version of your tool for free or at a low cost.
    • Upsell enterprise clients through direct outreach or your own website.

B. GitHub Actions as a Feature​

  • Benefit: Leveraging GitHub Actions simplifies adoption—teams already trust the ecosystem.
  • Strategy:
    • Emphasize ease of integration: “Works seamlessly with your existing GitHub workflows.”

C. Collaboration Opportunities​

  • GitHub partners with successful Marketplace tools for co-marketing.
  • Example: Dependabot started as an independent tool, gained traction on GitHub, and was eventually acquired.

4. Long-Term Growth Strategy​

Phase 1: Focus on GitHub​

  • Build, launch, and refine your tool for GitHub.
  • Establish a user base and generate revenue through subscriptions and pay-per-use.

Phase 2: Expand to Other Platforms​

  • GitLab: Similar structure to GitHub with CI/CD pipelines.
  • Bitbucket: Smaller market share but popular with startups.
  • Azure DevOps: Enterprise-heavy, ideal for scaling.

Phase 3: Build Independent Features​

  • Develop add-ons like a CLI tool or standalone analytics dashboard.
  • Reduce reliance on GitHub while continuing to use it as a core distribution channel.

Final Thoughts​

Using GitHub as your foundation is smart. They encourage third-party tools, and their Marketplace is a low-friction way to reach paying customers. However, the key is not putting all your eggs in GitHub’s basket:

  1. Build unique features that differentiate you from GitHub’s native tools.
  2. Diversify your revenue streams outside of GitHub Marketplace over time.
  3. Maintain transparency and strong privacy practices to gain trust, especially from enterprises.

You’re playing the game right by leveraging GitHub, but with these precautions, you’ll be positioned to win big without worrying about the rug being pulled out from under you. 🚀