Its actually free, most of the time. Anyone can read your source code if you have a web application. Indeed thats how alot of us work now, there is no harm in extending other peoples code (as long as you respect the license). Its called Open source. Linux was built this way, so are many other apps. Vertical expertise on platforms, yes there is some demand there. We do not need php developers anymore. We need wordpress experts, linux experts, facebook application experts, and iPhone/Mac coders. Coders with deep, geeky knowledge of one platform.
There are facebook clones, twitter clones, clones of clones. What does that tell you? It tells you that there are enough developers out there who can build your application or idea (which is usually the first, and simplest problem).
So Mr tech entrepreneur, while you are hip, cool, geeky, techie,etc , your problem eventually is never going to be the technology. You’ll figure that bit out. You need a guru marketer(s), and amazing, honest, decently dressed sales guys. Sell, sell sell, share, sell, market market market. Your brand, your domain, your service. That is the cycle you want to establish right after your beta is out there. So, whats your barrier to entry once your app is out there in beta? How will you make money (please dont say just advertising!) , kill the competition and build your brand? Not a very techie problem, but one you need figure out before version 3, nonetheless.
Then wait for it all to dissapear. Just like you use email, if your users use your app/service/product, and once it fades away into daily life, its timeless. And so is the revenue
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