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Old 01-30-2012, 01:38 AM   #1 (permalink)
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Question Sharing revenue within the team?

Hey guys.

I need your opinion on this. Currently I work for a small company (6 individuals). We've been working in mobile communications systems for a while (approx 6 years now). So we decided to start developing apps for iPhone and Android. We've got some pretty great ideas and staff for it, so we thought - why not?. Team is grouped in 4 'separate' directions:

Coder.
Designer.
Creative Team.
Publisher (Promotion Team).

My question is how do i share the revenue (if there is any) within the team? I don't want to develop some sort of my unique way of doing this, just curious about what are the standards out there? How do you share it with your team?
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Old 01-30-2012, 02:01 AM   #2 (permalink)
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How have people been paid in the past 6 years?

I really don't see the need for a Creative Team and Publishing Team personally. Any money thrown at marketing/promotion is a waste and the Creative Team is just the Designer anyways right?
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Old 01-30-2012, 02:50 AM   #3 (permalink)
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For past years all of our team members had their monthly salary, which did not depend on the number of sales. But considering the specificity of 'appmaking' business we thought we have to share income.

Quote:
Any money thrown at marketing/promotion is a waste
Well, as from the case studies we think that any product (Doesn't matter if it is a smartphone app or just some kind of a service you're offering) needs a promotion. I do understand that the app itself has to be so good that it has to able to spread the awareness on it's own, but without promotion you wont get any closer to proper sales, right?

Quote:
Creative Team is just the Designer anyways right?
In our case the creative team is a bunch of people who eventually come up with some great app ideas. The designer is another person (responsible for app layout, icon design etc.).
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Old 01-30-2012, 02:58 AM   #4 (permalink)
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Quote:
Originally Posted by ChillgrooveR View Post
For past years all of our team members had their monthly salary, which did not depend on the number of sales. But considering the specificity of 'appmaking' business we thought we have to share income.
You don't *have* to share anything. But if you decide to do a share in addition to a regular salary, it's doesn't have to be much. Really just think of it as a bonus. I'd think that if someone was being paid to create an app and then had some potential percentage on revenue/profit, they should be happy. If the team is just a few people, even 5-10% per person should do. If it's a huge success (long shot) then that 5% could be a lot of money.
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Old 01-30-2012, 05:29 AM   #5 (permalink)
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I think, he means going "self employed" as a team. If nobody is the boss and you want share equaly, then you get the money, one handles the bank and itunes account, the others have viewing access to it and that's it.

Everybody can see how much money was made and you split it equaly.

If it is a company and one of you is the boss and the others are just workers, then why share the money?

The boss can give out a bonus to them if they worked in their spare time on the mobile app (many companies do it this way) based on the revenue or based on their hourly salary etc.

I wouldn't break my head about it.
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Old 01-30-2012, 06:12 AM   #6 (permalink)
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OK let me put it this way: For instance I am the company and I am responsible for publishing and promotion of the apps & I also own all the rights of every app. I use a coder, a designer and a creative team as an outsourcing and i WANT to share the revenue.

How much should i share with each of listed outsourcing 'elements'?

Should it be like

20% coder
20% designer
20% creative team
40% me (as a company)
?

What would you do in this situation?
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Old 01-30-2012, 07:02 AM   #7 (permalink)
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What would I do? If I was the coder then I would tell you that You can keep my 20% and that I want my hourly rate (plus overtime rate where applicable) for all coding.
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Old 01-30-2012, 08:52 AM   #8 (permalink)
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Quote:
Originally Posted by Joseph Nardone View Post
What would I do? If I was the coder then I would tell you that You can keep my 20% and that I want my hourly rate (plus overtime rate where applicable) for all coding.
Perhaps you are misunderstanding what he is saying.

He wants to know what you would do in his position. He did not ask for what you would do in the coder's position.
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Old 01-30-2012, 11:25 AM   #9 (permalink)
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Is the revenue sharing on top of the salary/payment you would give to the designer/coder/creative team, or is it in lieu of it?

If it's the former, then anything you decide to give them is fine. If it's the latter, your share should be smaller.
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Old 01-30-2012, 12:01 PM   #10 (permalink)
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I'm confused. If you already have a team you are paying a salary, why would you share ANYTHING? They are already getting paid! If you want them to work on apps then just tell them to do that, you're already the boss. Unless I am totally misreading your situation.

And 6 people with only 2 guys doing any actual work? I don't see how you can be competitive with a team like that. One guy can do promotion / publisher really, and even then it's probably part time. The other 5 people should be coding / designing. Otherwise there is no way you are going to be competing with other indie studios, most of which consist SOLEY of developers and designers. It's really not that hard for a developer/designer tandem to do all of their own creative/promotion work. In fact, it's probably better.

Maybe if you already have a string of successful apps and want to expand in to a larger company, I can see room for some of those other roles. But there are many many successful app developers out there that just stay small (1-2 people).

Last edited by bignoggins; 01-30-2012 at 12:07 PM.
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