I think the question here is, how big is the company? Depending on how small or large the company is depends on everything. If they are a small company, they p

I think the question here is, how big is the company? Depending on how small or large the company is depends on everything. If they are a small company, they probably would not be able to afford a large cash deal, and would probably try to sell you with royalties rather than a big cash payment. A medium sized company, a nice chunk of cash and small royalties if any. And a large company - it's an all cash deal. I would go for a lump sum cash payment if you can take it, and if you can add royalties on top, more power to you. But again like previously stated, that can be a fishy area. You are in an employee relationship, so you will never be able to audit books, or verify things that a normal founder would be able to easy reference check. Get as much UPFRONT cash as you can. Consider royalties as a "bonus". My 2 cents.