

Ask HN: Developer wants percentage of revenue - taigeair

Just curious about this type of arrangement. How long does it last and what happens when there is continued development?
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valarauca1
The question is very board and it depends on dozens of factors.

If your talking about developer 1, square 1, your the 'idea man or women' and
you approach me with an idea I like it and want to work _with you_ on it. Then
I'll likely want some ownership, or revenue sharing as the product couldn't
exist without my technical know how (or another developers).

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_random_
I can see only positives. You don't pay when there is no revenue. You fire him
when revenue gets really good. He gets cash faster than with equity,
potentially no need to beg for salary raises in future.

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taigeair
So you're saying for revenue share, you can terminate it if he is no longer
involved?

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zura
One of the main point of revenue sharing is turning it into passive income -
for the rest of your life. So no one will ever sign the terms which binds this
to employment termination.

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taigeair
I think it makes sense to give equity for being a part of starting something
but to have perpetual 5% income seems crazy. I'm guessing, revenue share stops
at some point?

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jagawhowho
5% not much if the developer is the creator and part owner of the product. The
product could flop and he makes 0. Spending his time at McDonalds may be more
profitable.

