Revenue Share or Flat Fee ?
Jel
Member Posts: 319
I have a friend of mine that has ideas for 2 games. The ideas are good but may not be huge successes also I don't want money to get in the way of our friendship.
This will be the first time I've collaborated with someone else on a project and my question is to anyone that has experience of this is it better to charge a flat fee for the work ( I would have to design and build the apps ) and if so how much should the fee be or set up a revenue share with him and another colleague ( 33.3% each ) ?
This will be the first time I've collaborated with someone else on a project and my question is to anyone that has experience of this is it better to charge a flat fee for the work ( I would have to design and build the apps ) and if so how much should the fee be or set up a revenue share with him and another colleague ( 33.3% each ) ?
Comments
Each option might have a different effect on each partners. Some might think of a flat rate as a paycheck and the sooner they get it the better, so they work faster, and for the share, they might think "ehh, I'll be getting money no matter what, I'll finish tomorrow. "
It depends on how determined the partners are. Also for the percentage, it determines on how much is done. Obviously 30 hours of coding and 10 minutes of searching google for places to advertise is not the same.
So before going into the project map out what has to be done and who will be doing it, then decide how much you would pay someone doing that task. and find your percentages that way.
Example:
-Michael $700 = 69% Revenue
--Art: 30 hours $300
--Coding: 40 hours $400
-Billy: $250 + 5% = 31% Revenue
--Public relations: 25 hours $250
--Original Concept: 5%
5% seems a little low for the concept. I might start a pole on that and see what people think.