What percent of the profit should each team member get?

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11 comments, last by Aurelien Folie - Odin 7 years ago
We were 3 people that started this week, and we all quit yesterday, and the remaining 2 employees will leave next week too when their contracts ends.

It was my first real job as dev, and I'm not pleased! Hope it changes.

Gotta make a rant about him on devRant.

I'd hold off on that.

They guy won't even check up on his employees, let alone devRant!
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We were 3 people that started this week, and we all quit yesterday, and the remaining 2 employees will leave next week too when their contracts ends.

It was my first real job as dev, and I'm not pleased! Hope it changes.

Gotta make a rant about him on devRant.

I'd hold off on that.

They guy won't even check up on his employees, let alone devRant!

Taking freelance work is always risk. Try to get them to pay you before you release their code. e.g.
You release the first week of work for free.
Then you release each week of work you have done AFTER receiving that wage.
That way whoever is paying you recieves a week of work from you for nothing and so are effectively paying you one week behind. It carries a risk you might not get the final payment, but it sure better than having 3-5 months unpaid! This method carries some risk though (i.e. One week of unpaid work at the start or end).
Anyway, I just started out in freelancing proper and have stuck to this mantra and will do outside of long-established and reliable companies and thus far it works ok.

Mats1's advice seems quite sensible and makes it safer for you to ensure you do get paid indeed. Maybe it's a process that can be agreed upon in the contract, to ensure you cannot get in trouble for doing it.

Regarding the way the profit is shared, it all depends on how the company was setup in the first place, and what percentage of profit you managed to negotiate when starting the work. There are some formats often used when there are multiple founders, but then there are no rules on how to set them up. It's really all about negotiation.

And then there is the question of what is actually considered "profit", as there are a lot of ways of managing finances to ensure that there are no actual profit, like investing all the revenues into R&D, or into other product developments etc... which shows, in the end, that all the money that was earned was spent, and therefore, that nothing is left to split.

Overall, when it comes to contracts, pay, shares, revenues, profits and the like, if you're not sure you understand all the terms of the contracts, it's a good idea to check with a qualified lawyer to ensure you know what to expect, and what you're due.

Aurelien Folie - Odin - Founder of Asgaard Studio

Creator of unique, bespoke experiences

Gentleman Extraordinaire

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