As a developer, something I worked out with a startup trying to save some cash was that I would work for about half my normal hourly rate up-front. Then I would take a share in the startup's revenue (not equity - say 20% of gross income) until the other half of my hourly rate was made up for - this could take a year or two years etc, or if the startup is very successful it could only take 3 months; but it is capped t…
This is creative, but the problem with clever 'backpay' solutions and startups is that often they are starved for cash, so the extra 5% or 10% is valuable money that they could be using to grow the business. From an owner's perspective, I would never spend future revenue today. What if your not making enough money to pay the bills, yet have to give a percentage of revenue to a developer? They aren't going to stick ar…
If they developed the product that's producing said revenue, why does it matter whether they're still around?
Suppose that your product required an expensive piece of equipment and you didn't have enough cash to pay for it. (Or, you didn't want to pay cash.) Would you object to paying over time? Does the answer depend on whether the payments go to the manufacturer or a third-party?
Yes, you might well prefer terms with a fixed cost but there's a considerable risk that they'll get nothing and it's unlikely that they can reuse the code elsewhere. (Besides, you probably insisted on an exclusive license.)