Let's say, hypothetically, your application is going to generate $500k worth of business in the first year. Amazing!PCSpectra wrote:I have a newsletter managment application I am trying to sell (similar to campaign monitor, etc) and every business savvy person I have tried to partner with wanted 50-50. I laugh. How about 25-75 and I offer you monthly bonuses for excellent work. Or 50-50 and I cap you at 55K/year.
You demand 75%. Or 60%. Whatever, you're refusing to go down to 50% because you're the developer and you think you're worth more. As you say, you're trying to sell it at that price. EG you haven't sold it. You're earning $0 from it.
Personally, I think 50% of $500k is much better than 75% of $0.
Maybe that's just me though.
The fact is you've clearly never been involved in running a business beyond basic web design/development. To you the business is the software that you write. When you get a bit more experience you'll start to realise that sales, marketing, management, fulfilment, customer relations, PR, etc are actually worth a great deal of money. More than the software in fact. A business with an incredible team of developers is never going to get rich without a great sales team to sell what they build (or a large amount of luck). A business with a great sales team on the other hand, they can still get rich with only a very mediocre team of developers.