Revenue Sharing

If you’ve ever been approached to do revenue sharing on a development project this is a must read for you and the people asking for it:

http://tapadoo.com/2009/the-problem-with-revenue-share/

The few times it’s come up with my potential clients I’ve always turned them down because I thought the risk was too high on my end and none on theirs.  Of course, if the right one comes along….

2 thoughts on “Revenue Sharing

  1. The magic clause to give to the would be revenue sharer is:
    “The Second Party shall devote his full time and attention to the joint venture and shall not without the consent of the parties engage in any other business or apply for, or allow himself to be nominated for or elected to any position which would prevent him from devoting his time and attention to the business of the joint venture as agreed with the other partners.”
    where they are “the Second Party”.
    If they are willing to go for that, then look at the idea and figures, if not…

  2. @S-Copinger
    Ha! Good magic clause!

    Most of the people that I’ve talked to about revenue sharing wouldn’t even think about a clause like this (much less understand it). The whole thing about the developer taking all the ‘risk’ was the part that hit home for me in the referenced article.

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