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Interesting. I'm exploring revenue sharing models for iPhone applications, so I'd like to know more. When you say 50% of the net profits, do you take into acco

Interesting. I'm exploring revenue sharing models for iPhone applications, so I'd like to know more. When you say 50% of the net profits, do you take into account any salary at all, or is everyone paid only after there are profits? You say everyone receives 50% of the net profits, and you set aside 15% for expenses. That's 65%. What happens to the rest? Thanks.

pxlpshr 18y ago
No salary, everyone has stake in profits. The 'creator' retains 100% of his product's ip. If a partner is no longer interested in working on a product, he loses his profit share. It's the best approach I've found for a boutique shop to minimize risk and a bunch of paperwork and headache. 4 products in 4 months by team of 3. AppStore is very hit-driven so until Apple makes some much needed changes in the economics, it could be a bumpy road for awhile. + 15% of a product's gross profit goes into the founder's fund. + the project partners split the remaining profit into equal parts (usually 50%). this is compensation. + every partner (including myself) is charged a "partnership fee" = company expenses divided by # of partners. I like this method because success in the AppStore is really dependent on releasing updates often until a very, very strong product exists that you can sell for $5.99+. That's our approach this year and profit sharing keeps the developers interested in that goal. Here's an overview of profit distribution for Jan. 09. http://www.grabup.com/uploads/3ad2c56bf88717180fa1b5c77645e353.png http://www.grabup.com/uploads/3ad2c56bf88717180fa1b5c77645e3...
- Shamiq 18y ago
  Those expenses are sexy low. Mind disclosing what you're including in them?