Have you considered doing revenue sharing to fund development of a mobile app? How would you do it?

Posted by Brennan on Stack Overflow See other posts from Stack Overflow or by Brennan
Published on 2010-04-17T17:19:49Z Indexed on 2010/04/17 17:23 UTC
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I am looking to build multiple mobile apps which leverage existing content and resources by enabling these mobile apps with web services. I will duplication much of the same features which are also in place and add more features that are possible on a mobile device like address book, maps and calendar integration to make the service much more useful.

To fund these projects I see that I have 2 options. First I could simply quote them for the project based on my hourly rate and the estimate in hours that I will take the to complete the job. That may be a high number. The second option would be to do shared revenue with ads placed in the app. I could then take a percentage of any revenue that is generated from the app.

There is also a hybrid where I might charge for a percentage of the estimated quote and then take a percentage of the revenue sharing.

So my question is how much should I propose for the revenue sharing? Should it be 30%? Or maybe I should make it 70% up to a point that a certain dollar amount is reached? And should the revenue sharing agreement be for 12 months, 24 months or more? Should I include in the proposal an agreement that they will help promote this app with their content and resources?

Ultimately this system will benefit both sides because it extends their reach into the mobile space instead of where they are currently with just print and web.

I have tried to find some examples with a few Google searches but I keep hitting content about the Google and Apple revenue sharing models. I would like to get some solid examples that are working to compare against so that my proposal do build these apps is not completely off base.

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