Hi I would like to ask everyone's opinion on this subject.
My compensation system is based on a percentage of profits for each facet of the finished MMO project.
Here is what I have currently for the different areas of production and how much they earn.

~Profit Sharing (per quarter)
Management 10%
Design 10%
Programming 10%
Art 10%
Music/Sound 10%
Content(Level Creation, Storywriting, etc.) 10%
Bonus 40%


"Bonus" is used for investing in the expansion of the project hardware/software/contracted work) and also for splitting amongst all participating team members.
Each team member that contributes for that specific quarter will earn a portion of Bonus profits based on how many hours were spent creating new content or modifying existing content.

My example is not exactly what I'll be using on the project but its what I have so far. I would like to hear concerns of any aspect of profit sharing you might have, to make this a better model.

[Edited by - KelseyR on July 9, 2010 9:43:23 PM]

Yes you are correct. That is what I have to work with.

I will check out those links, thank you.

Clerifications from your first article
A. The goal is about building careers. Giving experience to all team members. I more than likely will launch a company for this project and potentially many more projects.

B. I am not in need of ideas for the mainstream project. If there is something I discuss with a team member about the needed art then the mechanics of what and how of the art is negotiable.

E. I am the manager, designer, and programmer for the project. It has been that way for the last year as I am the only member. I have put in right around eight hours every day for the last year. I can pull my own weight. Just looking to expand the team with one or more artists, that is my weak point. If it comes to it, I'll spend as much time as necessary when the time comes to do the art myself.

Putting aside the fact that this is a "Possible Revenue Sharing" model and it may never even be needed. I may not even need a team. What if it was needed though? What would be a good way to go about a very fair pay system? Altogether put aside the thought of mainstream revenue sharing and offer instead to pay off the amount of time they spent on the project, taking into consideration the quality of their work, as the quartly pay is handed out use those percentages from my first link to limit the amount of money that is paid for that quarter to each facet of the team... Then possibly for good measure give a smaller royalty percentage to each facet of the team after they have been paid in full for their services?

[Edited by - KelseyR on July 9, 2010 9:09:17 PM]

I wouldnt share revenue at all, id pay people commissions and the actual owner of the company whos hiring the server men to keep the game online should get ALL revenue.

Why not share revenue? I cannot think of a better way to show my appreciation of a game well done, after the fact of them being paid for all of their contributions. It may not be a large percentage, but a minimum of around 10% split amongst artists.

[Edited by - KelseyR on July 9, 2010 11:58:55 PM]

Id be paying people up front, maybe $50,000 for 10-20 models from each artist, its a lot more professional that way. But then again, maybe I cant afford to hire decent artists.

Quote:Original post by KelseyR
Why not share revenue? I cannot think of a better way to show my appreciation of a game well done, after the fact of them being paid for all of their contributions. It may not be a large percentage, but a minimum of around 10% split amongst artists.

10% of zero is still zero. Revenue sharing may look good on paper but in reality you are going to find its hard to keep people around for months or years with only a promise of some profits that may not be there.

There is no promise of profits if there are no profits. This is acknowledged before anyone enters the team. The goal of the project is to build skills and gain experience on a project. I'm not looking to get this done quick, I can wait for the right person, a person not in it for the money. I'm not in it for the money, but if there is money in the end, great for everyone involved.

Thanks for the posts, I'll keep that in mind if I ever need to recruit anyone.