Programmer's Cut in a small business
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Programmer's Cut in a small business
I am developing software that my business partner and I have decided to sell. My question is in a situation where the company is just him and I, what should I get as a cut of the profits?
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alex.barylski
- DevNet Evangelist
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Re: Programmer's Cut in a small business
Tough call...depends on what each of you do...Todd_Z wrote:I am developing software that my business partner and I have decided to sell. My question is in a situation where the company is just him and I, what should I get as a cut of the profits?
Honestly...these are difficult relationships...for me personally anyways...
Usually partnerships imply just that 50/50 partnerships...but who *really* does more work...
Are you both developers...? Or just you? If your the sole developer you will likely provide:
1) Upfront software development
2) Maintenance & Upgrading
3) Technical support
4) R & D
When you do this as a official business...it's a stupid amount of work...i've tried numerous times...
Whereas your partner will be doing what? Is he the business savvy one?
1) Marketing & Advertising
2) Sales & PR
3) Documentation, etc...
It's likely your role will extend into number 1 and 3 of his...because he will need your input when writting docs...and you will also likely indirectly end up advertising your products through Forums, etc you visit...
How many developers advertise their web sites/products via the signature tags in Forums??? Tons!!!
So you will be contributing to the overall sales of your product...and yet won't be compensated for it...
I don't know about you...but as a developer I'm eager to stick my fingers in everything!!! However my sales skills could use some improvement...so a partner makes sense...but I'd personally have a hard time going any more than 25/75 in my favour...
As I would likely end up doing waaaaay more work...but then you have to ask yourself the most important question...
Whats better...100% of nothing....or 50% of something???
You'd better get all these details figured out ahead of time...otherwise I *PROMISE* you this...there will be a butting of heads...and you both stand to loose waaaaaaaaaaaaay more than you gain from a veture like this...
Money does funny things...even to unfunny people
Cheers
- Christopher
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If you are partners then you should have some agreement as to how monies are disbursed from the company to each of you. Selling this software should be the same split unless you want to have some special agreement for projects like this. If you want to go that route, you need to discuss it and come to what you both consider an equitable agreement. You can also write it up so that it is a trial or one time thing so that you can adjust has you both have more experience with things like this.
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- RobertGonzalez
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Make sure you both cover your rumps. Put as much down in writing as possible so you both can establish your perceived amount of work, ownership, responsibility, etc. It might prove to be a useful tool for you at this point as well. Imagine running into conflicts after the product hits the market. If you cover the issues on paper first, you can work throw those issues without killing both your parts of the business.