How to split revenues in software project, how to come up with easy quick agreement for small project


3

Hi I was wondering how to split the revenues between a team ? what methods are there in project management so that we come up with logical fair percentage for each team member.

"if" there available quick answer the team is consisted of (Backend developer, frond-end Dev, Graphic designer, marketeer)

Project Management

asked Jan 1 '12 at 00:21
Blank
Ismail Marmoush
116 points

2 Answers


6

Well if your not a company (and I suggest you create one) then you basically say

  • Revenue - Running expenses = Profit
  • Running expenses can be servers, wages, coffee, travel, marketing costs for Ads etc.

You then take the profit every 3/6 or 12 months and say we will invest X% back into the company to grow and we will spilt the remainder between us.

How you split it comes down to what you can all agree on. 1/4 each sounds about the fairest unless someone is doing far more or far less than the others and then it gets trickier.

You are then pretty much counting hours worked, giving each hour a sweat effort multiplier and then granting a "value" provided through specific skills, basically Marketing unless they are watching the website full time and tweaking things won't be working as hard as the developers ... you will need to balance this.

I have given a few answers on ways to do this previously:

Hopefully this gives you a bit of a starting point.

answered Jan 2 '12 at 10:19
Blank
Robin Vessey
8,394 points
  • really thanks a lot robin this is one of the best and fairest answers I've read. – Ismail Marmoush 7 years ago

2

Robin's answer was best for your question but I'd like to throw in a caution, which may be totally unneeded but just might be helpful: pay attention to how any discussion about money is going.

If one individual is problematic and really really wants to make sure everything is going to be fair someday, when there may or may not be any money, look out: you may find yourself having to justify your 5 cups of coffee to his 3 at a later date.

Okay, that said, if everyone is groovy and just no idea how to tackle a split I would vote for equal shares and expect equal effort. The company won't succeed without a backend, and equally won't succeed if no ones sells it. If the marketer has nothing to sell early on they can be building social networks to sell into later, building buzz, teaser pages, generating test data for the backend, something. If the backend has less to do later they can be optimizing, planning for expansion, making calls for the marketer, again, something. IMHO experience there's no shortage of tasks to do, just (sometimes) shortage of commitment.

answered Feb 11 '13 at 14:39
Blank
Davedigerati
61 points

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

Project Management