How should i split iphone development profit?

March 21, 2009 4:35 AM

I've made the plunge into iphone development. Ive started working on ideas with a friend who is a talented graphic designer. My question is: how should I split profits from the applications with him?

I need some advice.

My background: I'm a good programmer and I've bought a mac mini, an iphone, and I'm learning objective-c and xcode.
Graphic Designers background: Good designer, a friend, has owned an iphone since first gen, knows the culture.

We both have alot of good ideas.

He was thinking a 50/50 split but as I'm beginning to see that the applications will require alot of development time compared to design work. I don't think that is fair,especially since im investing alot of time learning the new platform/language. I dont want to ruin the energy we have going, but i also don't want to be taken advantage of.

Can anyone give some suggestions on how we should divide the profit/earnings from the applications?

Any suggestions, advice, or help is appreciated.

posted by Merik to computers & internet (16 comments total)

Coming to this from your point of view (I'm code heavy myself) you need to understand you could have the best, most efficient, sexy codebase in the entire universe. If it doesn't look and feel slick and does not appeal to the users, it ain't gonna sell.

While her investment may not be as pronounced as yours in terms of time, her contribution is just as important if not more so. I would say 50:50 looks like a good split to me.
posted by gadha at 4:49 AM on March 21 [2 favorites]

Do not underestimate the amount of time a designer spends getting it right. If he's a professional, experienced designer, I would imagine that the amount of time he has dedicated to his craft is substantial. Iterations, re-iterations, prototypes etc take a really long time.

Remember, this isn't a job in the traditional sense. You're not getting paid for the time you put in - you're getting paid for what you produce. Presumably he's there as a partner, not just an employee, which means he's there for more than just drawing a few boxes in Illustrator.

Maybe try spending a bit of time immersing yourself in what he does, and hopefully you'll appreciate exactly what it is he does.
posted by Magnakai at 5:25 AM on March 21

I don't think that is fair,especially since im investing alot of time learning the new platform/language.

Do you know the culture? Can you do good design work? Can you do good design work while learning a new language? Are you going to handle sales?

If not, then you should be thankful that's it's going to be 50/50 split instead of a larger percentage going to him. The most awesomely coded app won't mean crap if it does look good compared to other iPhone apps (the culture) and doesn't have good marketing. You sound as though you think you're doing all the real work and he's just throwing a pretty veneer over the top. No, you two need to be working hand and hand to ensure that app not only looks good, but functions well.
posted by Brandon Blatcher at 5:31 AM on March 21

If you have these thoughts now you need to air them with your partner now, you can't start a successful venture if you're harbouring resentment. Walk away, scope what you need to do, then approach a graphic artist with your concept but be aware that this will not be cheap.

Unless you are stunningly rich I doubt that you could fund the design iterations, changes- all the steps involved in brining a well presented graphically driven application to market. The effort involved in intense.

As a startup 50/50 is good. Both of you will be putting in the hours... and sounds like you have a high horse that needs getting off (fnarr fnarr)
posted by mattoxic at 5:50 AM on March 21 [1 favorite]

50/50 is not only fair but typical. All the teams I know split 50/50. I know one group of four people, split between developers and designers, and everyone gets 25%. Another way of thinking about it is not in terms of time, but of value. When the app gets to market, half its value is how it works and half its value is how it looks, so again, 50% is appropriate.
posted by DarlingBri at 6:01 AM on March 21

I don't think that is fair,especially since im investing alot of time learning the new platform/language.

How much time, do you think, he invested in becoming good at graphic design? His existing skills are an investment too.
posted by David Fleming at 6:21 AM on March 21

I don't think that is fair,especially since im investing alot of time learning the new platform/language.

Presumably your partner already knows how to do graphic design, why he should he be punished for having those skills already? He'll be more efficient out of the box because he's not learning on the job, which will further contribute to your perception that you're working harder than he is. Which you might be -- but if he's working smarter, I still don't see that translating into a bigger share for you.
posted by jacquilynne at 6:38 AM on March 21

The Founders' Pie Calculator is a decent guide to splitting up the shares based on the value you're bringing to the business. I'd suggest going through it with your partner to come up with something you both agree is fair.

im investing alot of time

Keep in mind that time doesn't directly produce profit. Even if you spend twice as much time as him, that doesn't necessarily translate to you bringing twice as much value to the business. If you want to get paid hourly, maybe you should talk about investing some capital into the business and then paying yourselves back with that. But for splitting up the business, stop thinking about time and focus on value.
posted by scottreynen at 6:39 AM on March 21

You're putting the cart way before the horse here.

My advice is to make your first app a free one. Keep it simple, and use it more as a learning period for you two to figure out how your process together works. Prepare to be surprised at how much work your partner contributes.
posted by mkultra at 6:57 AM on March 21 [1 favorite]

If you were starting a project for a client on a new platform would you expect him to pay extra while you learn your new skillset? Remember, you get to keep your skills after the project is over it's a win/win for you.
posted by Bonzai at 7:27 AM on March 21

especially since im investing alot of time learning the new platform/language

Take this part out of the equation. I've rarely had a client willing to pay me for the time I spend learning a skill necessary to complete their project.

I'm on the design side, and I'd say 50/50 is the way to go if the point is to put in "sweat equity." If, on the other hand, you want to write all the code, then pay a designer by the hour to create the graphics and UI, that's another way to go. But I doubt it would work out in your best interest.

As Magnakai says above: Don't underestimate the time it take a designer to get it right. Even "simple" websites and other designs can take an amazing amount of time to tweak and polish. Then there's the domino effect that comes from changing one small part, then everything else has to be tweaked to match. Add to that the fact that some of the best ideas for the design and/or UI will not even be in mind at all until the project is well underway. That's when AHA! moments come, where sometimes the whole project is started over in order to go from "good" to "great."

You don't want to get into that part of the project and have your designer feel like he's done enough already, since he is not getting a full share.

Also: seconding mkultra.
posted by Fuzzy Skinner at 7:49 AM on March 21

thanks for all the comments everyone.

50/50 is not only fair but typical. All the teams I know split 50/50.

This seems to be the consensus and after reconsidering, I probably need to get off my high horse ;)

The Founders' Pie Calculator
Thanks, this is an interesting take on the problem.


Even if you spend twice as much time as him, that doesn't necessarily translate to you bringing twice as much value to the business.

Excellent point

Remember, you get to keep your skills after the project is over it's a win/win for you.
also an good point.


You're putting the cart way before the horse here.

Thanks again everyone. I didnt mean to dismiss his contribution,but i can see how it can read that way. I absolutley know how invaluable designers are to creating good applications. 50/50 is probably the best approach. Keeps it simple, keeps it fun, and we can forget about the money till we both know more about what this venture really means.

Cheers all.
posted by Merik at 8:01 AM on March 21

If you don't feel that a 50/50 partnership is equitable, you'd probably be better-off paying a contractor to do the work. If that's not feasible, you might have to resign yourself with a 50/50 split because, after all, 50% of something is better than 100% of nothing.
posted by Civil_Disobedient at 8:33 AM on March 21

50/50 is fine. You're basically useless right now, until you learn enough
to be dangerous. Do it until it is a problem, and then break up and
renegotiate.
posted by the Real Dan at 11:46 AM on March 21

Alternatively; set up a company with appropriate split; clarity from day one can be invaluable.
posted by DrtyBlvd at 12:35 PM on March 21

I would do 50/50, because (1) iphone apps do not make very much money in general and (2) a harmonious working relationship is going to result in a longer productive lifespan for the team (meaning multiple apps, which will offset (1)).

It is worth noting the reality that developers make far more than designers in industry, and that is a reasonable indicator that their valuation is not identical.
posted by rr at 9:40 AM on July 18