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Revenue share agreement

ir001ir001 Posts: 25Registered Users
Hey,

I'm looking for a sample revenue share agreement.

Anyone here gone into a revenue share with a client, i.e. instead of the client paying you a fee, you agree a revenue split of the sales?

If so, would you be willing to share your agreement template, or point me in the direction of where I can obtain it?

I've googled a fair bit, and only come across industrial and commercial business agreements, which don't make sense in this scenario.

Any help appreciated.

Thanks.
Post edited by ir001 on

Replies

  • mnemonic_fxmnemonic_fx Posts: 419Registered Users
    edited June 2009
    I never involved in this, but I'm planning to do that.

    But, why do you think that other types of business revenue sharing agreement are not suitable in this case ?
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  • ir001ir001 Posts: 25Registered Users
    edited June 2009
    I never involved in this, but I'm planning to do that.

    But, why do you think that other types of business revenue sharing agreement are not suitable in this case ?

    Just for the simple reason that the ones I've found are 15 pages long! And I'm looking for something simple and to the point.
  • mnemonic_fxmnemonic_fx Posts: 419Registered Users
    edited June 2009
    You might try to ask

    VixML and mogeneration for this.

    Tell me if you receive their feedback.
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  • Mark0kosMark0kos Posts: 1New Users
    edited April 2010
    Hi, You can click on the following link for revenue / profit sharing agreements, examples and templates between two or more parties that are working on the development of Iphone / Itouch and Ipad apps. Such agreements may cover initial lumpsum payments and profit sharing thereafter, or just profit sharing from the outset. Special circumstances are catered for as well.

    www.wix.com/Revenue_Sharing/Agreements
  • AxevaAxeva Posts: 48Registered Users
    edited April 2010
    I'm coming in a bit late to this discussion, but I think the topic is something many of us will encounter at one point or another.

    So the question is -- does anyone have a sample for this time of agreement. Someone who's not trying to charge $80 for the download perhaps?
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  • Studio SymposiumStudio Symposium Posts: 21Registered Users
    edited April 2010
    For what it's worth - I started a discussion on the nature of App development companies, and revenue share is an issue that is touched on:

    http://www.iphonedevsdk.com/forum/business-legal-app-store/45947-paradigm-mobile-applications.html


    Basically, what I have found owning my own app development company is that, in the past, people have approached me to do revenue-share only deals. I've seen other companies go down that road and drown. Keep in mind - revenue share is a great way to get someone to work for you for free. Unless there is some kind of cost built into the agreement where you're getting paid to develop the application, then 100% of the risk involved with an app creation process is loaded onto your shoulders, not the clients. Also, it provides no incentive for any timeline to be handled properly. If someone is paying for something, they generally want it done on time. If not, everything is flexible in their eyes, because they're not paying you a dime.

    Just a few thoughts. Though I'm sure, to more accurately answer your question, you could find something useful as a guideline on Legalzoom.com

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  • iSpreadNewsiSpreadNews Posts: 315Registered Users @ @
    edited April 2010
    Axeva wrote: »
    I'm coming in a bit late to this discussion, but I think the topic is something many of us will encounter at one point or another.

    So the question is -- does anyone have a sample for this time of agreement. Someone who's not trying to charge $80 for the download perhaps?

    It takes weeks to compose a good agreement that satisfies both parties in some cases. Most probably people don't wish just to save a week of somebody's life for free.
    iSpreadNews.com - VERY CHEAP (from $50) way to send your iPhone/iPad app announcement to hundreds of blog & news sites owners over the globe.

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  • ChrisLChrisL Posts: 580Registered Users @ @ @
    edited April 2010
    Cost issues aside, it is an incredibly bad idea to stake an ongoing financial arrangement on some generic, off-the-shelf agreement that hasn't been reviewed and customized by a lawyer for your specific needs. A contract does you no good if you find after a dispute arises that it doesn't actually offer you the protection you thought it did.
  • SchnyderSchnyder Posts: 1New Users
    edited September 2010
    Did you ever find a good sample agreement for revenue sharing? I'm in the same boat, and after reading the advice of others here I still think that a basic revenue sharing idea would be worthwhile -- especially if there isn't a massive amount of development effort required. But I also am looking for a sample agreement that could then be reviewed by a lawyer. Did you find anything?

    Thanks,
    Schnyder
    ir001 wrote: »
    Hey,

    I'm looking for a sample revenue share agreement.

    Anyone here gone into a revenue share with a client, i.e. instead of the client paying you a fee, you agree a revenue split of the sales?

    If so, would you be willing to share your agreement template, or point me in the direction of where I can obtain it?

    I've googled a fair bit, and only come across industrial and commercial business agreements, which don't make sense in this scenario.

    Any help appreciated.

    Thanks.
  • egaalegaal Posts: 126Registered Users
    edited September 2010
    Schnyder wrote: »
    Did you ever find a good sample agreement for revenue sharing? I'm in the same boat, and after reading the advice of others here I still think that a basic revenue sharing idea would be worthwhile -- especially if there isn't a massive amount of development effort required. But I also am looking for a sample agreement that could then be reviewed by a lawyer. Did you find anything?

    Thanks,
    Schnyder

    Would this be like royalties? Like you provide them with an art work or music for an app and they provide you with a cut of the profits?

    Might want to search for publishing/royalty contracts.

    Something like this:
    Licensing Artwork: Negotiating and Monitoring Royalty Payments - Small Business

    or like:
    ePress-Online - Sample Contract

    I'm not a lawyer, but if you wanted to mock up your own contract, make sure it has these sections that I've seen in other contracts. Unfortunately I don't have a full sample and there's lots of things that can trip you up like hidden expenses, being able to review the books to make sure you're not getting cheated etc. so as always it's best to talk to an actual lawyer. In general, if you're the one selling your work for revenue sharing, make sure you insist on rights to review the books for any fishiness and make sure you know when you'll be paid and who owns the copyright to the work you produce. If possible, it would be better for you if they could pay you an advance of some sort (sure money for your effort).

    Distribution of Payments. Person A, hereinafter referred to as “Owner”, and Person B, hereinafter referred to as “Contractor,” hereby agree that the Contractor shall provide all music for the app, hereinafter referred to as “Game”, and in return shall be paid a royalty of ___ of net proceeds. Net proceeds will be calculated as gross sales minus Apple’s 30% cut and minus expenses. Expenses include, but are not limited to, the cost of the Apple developer license and domain hosting. Payments to Contractor shall be made by check within one week of Owner receiving payment from Apple.

    (Make sure it's clear when you'll be paid- once a month, once a year, once every quarter? And what things will they can count as expenses?)

    Copyright and Distribution Rights.
    Contractor certifies that the music provided is free of any legal encumbrances, IP claims, liens, or copyright by any other party.

    Contractor retains the right to showcase the work in a personal portfolio, but it may not be used in any competing products or services unless a separate agreement is reached.

    (Make sure it's clear who owns the copyright to the work you produced - is it the client? is it you?)


    Contractor Status. In no event shall this Agreement constitute an employment Agreement, and Contractor shall be considered only as an independent Contractor and not as an employee, agent, partner, or joint venturer of Owner.

    Taxes. Contractor shall be solely responsible for any and all taxes (state, federal, and/or local); worker’s compensation insurance; disability payments; social security payments; unemployment insurance payments; insurance; or any similar type of payment for Contractor or any employee thereof. Contractor shall comply with all local, state, and federal laws concerning safety, OSHA, labor, etc. and shall hold Owner harmless of any violation thereunder.

    Dispute Resolution. In the event a dispute shall arise between the parties to this contract, the parties agree to first directly confer over the dispute. If a resolution cannot be reached directly within 3 days, then the parties agree to participate in at least four hours of mediation in accordance with the mediation procedures of United States Arbitration & Mediation. The parties agree to share equally in the costs of the mediation. The mediation shall be administered by a local USA&M office to be designated by USA&M headquarters. Disputes that cannot be resolved during mediation will be taken to arbitration. The arbitration shall be administered by a local USA&M office to be designated by USA&M headquarters. The parties agree to share equally in the costs of arbitration and the arbitrator’s decision shall be final and legally binding and judgment may be entered thereon.

    (Dispute resolution can be about court jurisdiction or agreement to arbitration which is usually cheaper than going to court).

    Hope this helps.
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  • ArthurIhdeArthurIhde Posts: 2New Users
    edited September 2010
    lol please use search section to find the answer
  • bignogginsbignoggins Posts: 2,198Registered Users @ @ @ @
    edited September 2010
    I've never worked with anyone else, but common sense tells me that revenue share should be proportional to the work put in. If it's a client that just wants you to implement an idea, he should pay up front or hourly. Revenue share makes zero sense in that case (unless he/she is a celebrity or someone with significant distribution and marketing resources). If it's an artist or something like that revenue share may make sense, but depending on the nature of the app the artwork may be 50% or 10% of the total work involved. Most updates are code updates, not art updates, so think about that.
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  • FaNaTiCFaNaTiC Posts: 1New Users
    edited October 2010
    ir001 wrote: »
    Hey,

    I'm looking for a sample revenue share agreement.

    Anyone here gone into a revenue share with a client, i.e. instead of the client paying you a fee, you agree a revenue split of the sales?

    If so, would you be willing to share your agreement template, or point me in the direction of where I can obtain it?

    I've googled a fair bit, and only come across industrial and commercial business agreements, which don't make sense in this scenario.

    Any help appreciated.

    Thanks.

    I am an Iphone App Creator who successfully set up a profit sharing relationship with a Developer. Upfront capital costs were going to be at least $7000 in my case so I partnered up with the right guy with the right skills and pulled him onboard as an ongoing partner in the business. He will get 30% of all profits generated from the App. Due to the nature of my App, it will need constant updating, programming and tweaking so a partnership was necessary. Upfront payments do not guarantee that the developer will stay onboard after release - and after release more work will be required. Motivation is the key - try negotiate on the percentage. I'd say 10% starting is fair up to a max of 30%, of course all dependant on the underlying App itself. Key is to have your partner interested and motivated! :)

    I bought my revenue sharing agreement online (a small cost in the whole scheme of things - recall it was $100) - just do a search in google for "revenue sharing agreement iphone". I had it reviewed by a friend who is a lawyer and all was well. Great investment and not looking back! :cool:
  • bignogginsbignoggins Posts: 2,198Registered Users @ @ @ @
    edited October 2010
    FaNaTiC wrote: »
    I am an Iphone App Creator who successfully set up a profit sharing relationship with a Developer. Upfront capital costs were going to be at least $7000 in my case so I partnered up with the right guy with the right skills and pulled him onboard as an ongoing partner in the business. He will get 30% of all profits generated from the App. Due to the nature of my App, it will need constant updating, programming and tweaking so a partnership was necessary. Upfront payments do not guarantee that the developer will stay onboard after release - and after release more work will be required. Motivation is the key - try negotiate on the percentage. I'd say 10% starting is fair up to a max of 30%, of course all dependant on the underlying App itself. Key is to have your partner interested and motivated! :)

    I bought my revenue sharing agreement online (a small cost in the whole scheme of things - recall it was $100) - just do a search in google for "revenue sharing agreement iphone". I had it reviewed by a friend who is a lawyer and all was well. Great investment and not looking back! :cool:

    Holy crap you completely suckered that guy. 30% and he does all the development? Who in their right mind would agree to that?

    My philosophy is that ideas are cheap, it's the implementation that matters. As a developer I would never do a revenue share with an "idea person" only another implementer like a developer or artist.
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  • iwizardiwizard Posts: 1New Users
    edited May 2012
    bignoggins wrote: »
    Holy crap you completely suckered that guy. 30% and he does all the development? Who in their right mind would agree to that?

    My philosophy is that ideas are cheap, it's the implementation that matters. As a developer I would never do a revenue share with an "idea person" only another implementer like a developer or artist.

    An idea is just that, an idea. It's all about the execution of building a business. It's not only about the development of an app, unless you think that you just build it and upload it to iTunes and have an instant business.

    There are so many apps out there not making any return for the developer because it also needs someone with business skills and experience to work with the dev to make it into a successful business. It's called team work.
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