I'm working on defining a partnering agreement to be the technical co-founder on a SaaS startup. The founder/CEO has the experience in the service industry which we are targeting, but found that she wasn't able to get her idea up and running because of her lack of IT knowledge and experience. She's looking to keep 100% equity, and I'm looking for a commitment of less than 5 years, so we think a partnership where I simply get royalties on the company's sales is a good model. Has anyone done a partnership like this and have any ideas of how it might look? What percentage is standard? How does the percentage vary based on whether I personally do the programming vs hiring consultants to write the code & get the product to market faster? Is there generally a time expiration on how long I receive royalties, or does it continue indefinitely?
Any feedback on this type of partnership would be greatly appreciated!