Should You Share the Profits when You Hire Android Developer?

10-14-2014

So you had an app made, released it into the market after doing a slew of marketing and then…it is a success. Wow! You are bowled over by the enthusiastic response to your app and are wondering what you will do if the app continues to be successful. Ahem. Your Android developer nudges you and asks for a share of the profits. Because after all, without him you would not have been able to make the app in the first place. What do you do?
 
Well, it all depends on what you agreed upon at the start of the contract. And believe us when we say that you should have a contract ready when you first hire the Android developer. This contract should clearly stipulate who gets ownership over the app before, during and after the project ends. You definitely want ownership of your app because, after all, you did pay for it. But the contract aims to make sure that you will not have to deal with an app developer asking for a share of the profits, if that is not what you were aiming for when you conceptualized the project.
 
However, let us say you have a bit of a thin skin when it comes to profit sharing. You think that perhaps when you hire Android developer, that person is playing fair because he may have spent sleepless nights tweaking with the app until it reached perfection and helping you out by making helpful suggestions along the way. In this sense, the app is his baby too. So you need to figure out in your own head what counts as fair compensation in this case.
 
As always, this kind of issue boils down to a sense of fairness in both the employer (meaning you) and in the employee (meaning the app developer and his team). If what you agreed upon is simply a set rate and no more, then stick to your guns and don’t be swayed by any comments. However, if what you agreed upon is a vaguely worded contract then you have a problem on your hands and you may have to go to court to litigate this kind of issue. Take note that litigation will cost big money so this is why you needed a well worded contract in the first place – to avoid costly litigation that may take years to resolve.
 
Of course, you can always have the app developer sign a quit claim form as soon as the project is terminated and prior to launching the app. This is an employer’s way of protecting yourself when you hire Android developer to make your app. That way, you can always show this document to any and all parties to indicate that the app developer gave up all claims to the profits of the app before you even did any marketing. After all, nothing smells as sweet as sure money and by granting this “bonus” through the quit claim form the app developer may find it sufficient compensation and not give you any more trouble about it.