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We're making apps based on a book. We have approached the author and he has agreed to let us use the trademark and help us promote them in exchange for revenue share. The revenue comes from affiliate links, app sales and potentially other channels. He has now asked us for a rev share proposal. What are our rev share options to propose?

On a side-note, the author is influential and we highly respect him and value this opportunity. But still we'll need to cover the costs and grow the business.

We appreciate any pointers,

Thanks!

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1 Answer

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A great way to go about it is to make it a tandem effort.

  1. Let the author know he will receive 5% of all net profit for first 10 years or up to $1 million dollars paid to author. Make sure the author's likeness can still be used after this has been met.
  2. Offer a way for the author to direct traffic to the site by using a unique URL, so leads can be tracked. Let the author know 100% of signup fees go to author via his URL.
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Why 100%? Isn't that too much? – BrownAndFriendly Aug 9 '11 at 18:13
100% of signup fees ONLY, so that way you recoop the costs on residual income. You don't provide any information about the website billing structure, all I can do is guess. – Kirk Strobeck Aug 9 '11 at 18:49
It's actually initially a set of mobile apps that will be paid versions. Later there will be other revenue streams. – BrownAndFriendly Aug 10 '11 at 11:28
One great way might be to just say 5-10% net profit up to $X, keep it simple, and also know what the scope of payout/liability is from the start. – Kirk Strobeck Aug 10 '11 at 21:17
I went the same way but without a cap. Let's see how it goes. Thanks – BrownAndFriendly Aug 11 '11 at 17:38
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