Revenue Sharing

[masprogrammer]

If a client states they have a verified payment alongside a budgeted amount, but can't pay for the prototype and want to do revenue sharing instead of the amount listed, does that apply as a job on upwork?

[martina_plaschka]

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Mark S wrote:
If a client states they have a verified payment alongside a budgeted amount, but can't pay for the prototype and want to do revenue sharing instead of the amount listed, does that apply as a job on upwork?

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Any kind of revenue sharing or sales percentage or other deferred payment is not allowed on upwork. 

[yitwail]

Mark, you're right to be concerned, but as long as this 'revenue sharing' is in the form of payment through Upwork, there's probably no violation of Upwork regulations. Still, you should ask yourself how long you're willing to wait for this revenue to materialize. Months? Years? You will basically be working on a fixed price job with little or no milestone funded, so payment will be entirely up to the client. I wouldn't go near a job like that, but if you're sure the client is honorable and has a good business plan, then you'll have to decide if it's worth the risk.

[sergio-soria]

In my opinion revenue sharing in a place like Upwork means pie in the sky.

[tlsanders]

I agree with others that you're unlikely to get paid (and it will be hard to enforce, since it won't fit into either structure that allows for payment protection). But, if you did want to go ahead with it, you'd have to have a token payment, like $10 for signing on and then X% moving forward. The X% could be paid through Upwork's bonus feature, or by setting up and immediately releasing milestones as those revenues became payable. But, again, you'd have no protection. If the client simply decided never to pay you again, there would be no way to enforce your agreement through Upwork.

[r_satta]

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Mark S wrote:
If a client states they have a verified payment alongside a budgeted amount, but can't pay for the prototype and want to do revenue sharing instead of the amount listed, does that apply as a job on upwork?

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No, it is not allowed. You should be paid exactly the amount on your contract (well, bonuses are a plus).

You won't even know how much they made through sales, I mean, they can easily tell you they made 1$ while they made 100000$ instead.

[wlyonsatl]

It sounds like they will gladly pay you tomorrow for a hamburger today.

Just, no.