Software Development Revenue Sharing Agreement
It is obvious that execution is the creator of money, but running on a bad idea is usually as useless as a good unes executed idea. So the quality of the idea is worth something. As I see it, if a customer wants to pay all of my development costs, the application belongs to them. Conversely, if I do all the work, the application is pretty much mine. To give them options for a shared risk deal, I think profit splitting (non-sales) should be a reversal of the cost allocation. So if you want to pay 70% of the upfront fees, split the profits 70/30 in their favor (70% of the risk – 70% of the return). If they only want to pay 25% of the costs (or 25% of the work), then take 75% of the profits… And so on. In many cases, the potential client starts talking about the implementation of the project on a revenue participation. The logic is this: make it like a record contract. It receives 90% of the profits, but first we recover the development costs.
It`s easy. Another thing is that a participation agreement on turnover is a chic way of saying a business partnership. For example, if you create an app and say 30% of the winnings, then it is in your best interest to promote that app as much as possible as you want to earn money. A good idea is valuable. If there is real evidence that the work is being done to develop or prove the idea, it reduces the risk. If you`ve deciphered the numbers, it`s even better. (If it`s so good, it would be a bumpy road if you give up some of the income). So ask me 5k and a turnover of 30 to 70% ??! Why not do a project in your spare time, you can pay your bills and invest time in an idea that you believe in, whether it`s your own idea or the idea of another that you think is a game changer.
You just want to eat on both sides, which is why someone like me would never do business with you. There is a downside to this medal. I am a pre-end developer with no experience in developing iPhone applications. I turned to an app developer with an idea I had about an old industry I was working in. I offered him 25% income, he was initially skeptical, but decided to do it in the end. Now it makes more than 250 dollars a day, while I work 8 hours a day to provide the data to the application. I`m not complaining. It took both of our skills to make the product. The contractor provides the customer, within 15 business days at the end of each quarter, with a detailed statement regarding the use, licensing or sale of customer data in the previous quarter. The contractor must include in the report the details of the sale of all data, value added and advertising revenue.
The report contains the name of the purchaser, the Agency, the description of the data sold and the gross receipts. … Avoid this if you can. The customer should pay as much as possible, but never anything. Assuming you can receive > 75% of your development costs, which are borne by that client/partner, you might consider a percentage of revenue – take as much as possible, as long as you can and receive everything in writing. Then, if you have your development funds, you will find a developer who did not reject you when you were poor. Why make someone rich who didn`t trust their ideas? Hello Jake, I agree that many developers are not risk takers.