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Old 11-29-2010, 12:12 PM   #1 (permalink)
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Cool Profit Sharing Question

Hi,

I was talking to this guy and he has a really great idea for a puzzle game.
If I do the design, development, marketing myself, at what ratio should we split the profit? I'm thinking I'll get 60% he gets 40% in the first year just for the idea. Is this fair? Thanks.
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Old 11-29-2010, 12:54 PM   #2 (permalink)
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If he's just providnig the idea I would say less then 40%.... If he's bringing other stuff (money, graphics, sounds etc etc) then maybe a bit more
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Old 11-29-2010, 04:38 PM   #3 (permalink)
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Originally Posted by redskygames View Post
Hi,

I was talking to this guy and he has a really great idea for a puzzle game.
If I do the design, development, marketing myself, at what ratio should we split the profit? I'm thinking I'll get 60% he gets 40% in the first year just for the idea. Is this fair? Thanks.
So you want to do all the work, and give him almost half the money? Ideas aren't worth anything, but execution of an idea is. If he's bringing nothing but the idea, I'd offer 5-10% at best. Anything he brings to the table beyond that, go up from there.
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Old 11-29-2010, 04:48 PM   #4 (permalink)
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It depends if he does also marketing it could 60% and 40%.
I think idea and marketing are everything because every developer can code iPhone app but not all have ideas that sell.
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Old 11-29-2010, 04:59 PM   #5 (permalink)
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Quote:
Originally Posted by luigi1977 View Post
It depends if he does also marketing it could 60% and 40%.
I think idea and marketing are everything because every developer can code iPhone app but not all have ideas that sell.
Woah 40% is far too much for just the idea - try 10 to 15 %. Either that or I'll give you loads of ideas for 35%!
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Old 11-29-2010, 05:11 PM   #6 (permalink)
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Originally Posted by luigi1977 View Post
It depends if he does also marketing it could 60% and 40%.
I think idea and marketing are everything because every developer can code iPhone app but not all have ideas that sell.
But you don't know if the idea will sell until you spend the money to implement it and put it on the store. So all the up-front risk is yours.
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Old 11-30-2010, 12:02 PM   #7 (permalink)
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Thanks for all the info. There are no contracts signed. He's a good friend. If the app makes any money I'll give him a portion of the profit.
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Old 11-30-2010, 12:16 PM   #8 (permalink)
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Thanks for all the info. There are no contracts signed. He's a good friend. If the app makes any money I'll give him a portion of the profit.
If he's a good friend I suppose you don't want to ruin the friendship. But to me a good idea is worth zero. Good ideas are a dime a dozen in business, it's always the implementation that matters.
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Old 11-30-2010, 01:00 PM   #9 (permalink)
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But you don't know if the idea will sell until you spend the money to implement it and put it on the store. So all the up-front risk is yours.
But if it sells it is the idea and marketing that sells, not your code. I spent a lot of times coding a new idea: even for free nobody does a download..
Even if you will do better implementation it won't sell.
It was better for me to have friend with great idea and share the incomes.

For the risk i agree he should receive maybe a part of development cost or for example the 100% of first two months of sales.
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Old 11-30-2010, 01:02 PM   #10 (permalink)
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Woah 40% is far too much for just the idea - try 10 to 15 %. Either that or I'll give you loads of ideas for 35%!
If you will good marketing online and offline why not?
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