The Open Source development model produces software that is stable, flexible, and highly customizable. So the vendor of open-source software starts with a quality product. The trick is to devise an effective way to make money delivering the benefits of open-source software to you clients. Inventing new economic models is not a trivial task, and the innovations that Red Hat has stumbled upon certainly do not apply to everyone or every product. But there are some principles that should apply to many software ventures, and to many Open Source ventures.
Many companies attempt a partially open-source approach to the market.
Most commonly they will adopt a license that allows for free distribution of their software if the user is not using the software for a commercial purpose, but if he is he must pay the publisher a license fee or royalty. And remember, we're in the very early days of the deployment and growth of market share for free software. If you aren't making money today it may be simply because the market for your product is still small.