Some "inventor" contacted me a few days ago, I'm a freelancing programmer (I'm a student so now time for actual job).
Up until now every job was really easy, a client asks me for some utility or maintenance work, we agree on a sum, I get paid half, deliver work, paid another half.
now this dude is offering me an unpaid job but wants me to sign on a contract that basically says that I will own 20% of the income generated by the product I write, those 20% are flexible, for example, if he's getting an investor and promises him 10%, 2% get cut out of my pay, and 8% out of the inventor's pay (so 18% - me, 72% - him, 10% - investor).
I'm also required to sign an NDA, so my question is that:
Is that a normal deal or am I being ripped off? I used to get about 1500$ for a week's worth of work projects, but this sounds like an easy investment for a continuous pay (even if we don't generate a lot of money, it's still passive income)
(cont)
I mean, 20% sounds like a small share, especially when he said that he plans to expand his firm, and if/when I continue working with him, I might recruit some people who'd be paid a regular salary and I only kinda supervise them, like lead programmer or whatever. Does that mean that he has to make me sign for each and every product? (because currently the contract I'm reading is only about 1 product)
So bottom line is:
is 20% shares a good deal for a programmer who singlehandly writes a product?
I can translate the contract if needed
no. 50% off product and 30% of whole company
>>1153167
this is the way to go, also make sure you have a copy of the contract and let him sign it as well as you
>>1153164
Write your own shit, make your own money and invest in your own ideas
what the others said, also go into this with the knowledge you might make absolutely nothing.
Don't commit to any more work than you can afford to do for free.
Ideas are two a penny, his idea is most likely shit and will fail.
>>1153164
>is 20% shares a good deal for a programmer who singlehandly writes a product?
Not many people get offered a percentage of the profits, at least not that large of a percentage, especially students, so it's worth looking at. You'll have to evaluate the company/product to see if it actually has any potential. 20% of shit is still shit.
How much work are you expected to do? If he's giving you 20% he may be thinking you will be working full time busting your ass off, so make sure you know what his expectations are, especially if you currently think you will just do a little work and then cruise while profits roll in.
The part with the lowered percentage if he brings other investors in isn't bad, especially since he is mostly paying them out of his equity.
Find out what happens if he sells the company. I.e. would you still be entitled to 20% of the profits? Are you only entitled to profit sharing or are these essentially options in the company?
If you are going to do this, might be worth spending some cash on a lawyer to go over the contract language and point out any issues you need to be aware of.
>>1153164
Sounds like your equity is going to be diluted heavily my man. It's at your bosses discretion.
Also always ask for more than his initial offer.
>>1153617
yes, we're both signing the same contract, and I will have copies ofcourse.
>>1153621
I do have a few projects that I've written that generate some passive income for me, it's a few hundred dollars a month, but it's fully automated so I don't complain.
>>1153666
I do like the idea of his product and it seems plausible that it will generate some decent bucks if it goes right.
I have told him that I have other jobs and my studies obviously, and he's fine with that.
and will do, thanks!
>>1153164
Dont do it man.
Sounds like the classic "idea man" with no actual skills. If it was such a great idea he would have programmed it himself.
>>1154886
Unless he can't code...
