Building an app for your audience
Revenue Share and Equity App Deals for Creators: How They Work and When They Make Sense
Short answer: Yes, some developers will build a creator's app for a reduced fee plus a revenue share or equity. These deals only work when the creator has a proven, engaged audience and a clear plan to promote the app. Most experienced developers won't work purely for a revenue share. A hybrid of a reduced upfront fee plus a capped or time-limited share is the most common fair structure. Put everything in writing: ownership, IP, the definition of revenue, reporting, and how either side can exit.
I get asked about this a lot, often in a message like "I have 500K followers, want to build my app for a percentage?" Here's how these deals actually work.
Why would a developer take a revenue share?
From the developer's side, a revenue share is a bet on your distribution. They're trading certain income (their normal rate) for uncertain income (a cut of future revenue). That only makes sense if:
- Your audience has already paid for something: programs, courses, merch, memberships.
- You'll actively promote the app, not just post about it once.
- The app idea fits a subscription model with recurring revenue.
- The developer believes they can move the numbers after launch with paywall, retention and ASO work.
Follower count alone isn't enough. A developer will want to see your sales history.
What are the common deal structures?
| Structure | How it works | Good for |
|---|---|---|
| Full fee | You pay the normal build fee and own everything | Creators with budget who want full control |
| Reduced fee + revenue share | E.g. 40–60% of normal fee upfront, plus a % of net revenue | The most common fair middle ground |
| Revenue share with a cap | Share continues until the developer has received an agreed multiple of their discounted fee, then ends or drops | Protects the creator's long-term upside |
| Time-limited share | Share runs for 2–3 years, then ends | Clear end date, easy to model |
| Equity in an app company | You form a company and the developer gets a stake, often vesting | Long-term partnerships where the developer stays involved as a co-founder |
| Pure revenue share, no fee | Developer builds for free in exchange for a large share | Rare with experienced developers. Be wary of anyone who accepts this instantly |
What's a fair revenue share percentage?
There's no standard, but here's how to think about it:
- Define "revenue" precisely. Gross (before Apple/Google fees)? Net of store fees? Net of refunds, ad spend and hosting? A 20% share of gross is very different from 20% of net profit.
- Tie the share to the discount. The bigger the upfront discount, the bigger or longer the share.
- Factor in ongoing work. If the developer will keep maintaining and growing the app, the share is paying for that too. If they hand it off at launch, the share should be smaller or capped.
What are the red flags?
On the creator side (what developers watch for):
- No sales history, only followers
- "I'll promote it" with no specific plan
- Expecting unlimited features and changes for the same share
On the developer side (what you should watch for):
- The developer keeps ownership of the code or the App Store listing. You should own your app listing and developer account.
- Vague definition of revenue
- No exit clause or buyout option
- No reporting or transparency terms
- Agreeing to everything without asking about your audience or offer
What must be in the contract?
At minimum:
- IP and ownership: the creator (or the shared company) owns the code, design and app listing.
- Developer accounts: the app is published under your Apple and Google accounts.
- Revenue definition and reporting: which numbers, from which dashboards (App Store Connect, Google Play, RevenueCat), and how often.
- Scope: what the build includes, and how extra work is priced.
- Maintenance obligations: who fixes bugs and handles OS updates, and for how long.
- Term, cap and buyout: when the share ends, and the price for either side to buy it out early.
- What happens if the app is sold.
Get a lawyer to review it. It costs very little compared with the value of the deal.
Is a revenue share right for me?
Take a revenue-share deal if you have proven sales, limited cash, and a developer you trust who'll help grow the app after launch.
Pay the full fee if you can afford it and expect the app to do well. Over a few years a full fee often costs less than a revenue share, and you keep 100% of the upside.
If you're unsure what a build should cost, start with how much a fitness app costs and how to hire an app developer.
FAQ
Will developers build an app for free in exchange for a percentage?
Some will, but experienced developers rarely accept a pure revenue share unless the creator has clear, proven sales. Hybrid deals with a reduced fee are much more common.
What percentage should a developer get?
It depends on the upfront discount, the ongoing work and the term. Agree what "revenue" means first. Shares are usually discussed in terms of net revenue, after store fees, and are often capped or time-limited.
Should I give my developer equity?
Only if they're becoming a long-term partner who'll keep building and growing the product. Equity should vest over time and come with a clear role.
Who should own the App Store account?
You, or a company you control. Never let a developer publish your app under their personal developer account.