Equity, revenue share, hybrid or fixed price: which model fits you?
When an idea should become a product, the key question isn't “what does it cost?” but “how do we share opportunity and risk?”. Four models have proven themselves. None is better than the others — they simply fit different situations.
Equity: shares instead of an invoice
With equity, company shares are split. Whoever builds becomes a co-owner and benefits from long-term success. This creates the strongest commitment — and the biggest shared risk.
Fits when: you believe in a long-term company, both sides contribute substantially, and no one needs cash immediately. Less suited to isolated one-off jobs.
Revenue share: a cut of the revenue
Instead of company shares, there's an ongoing cut of revenue for as long as the product earns. Income grows with the product without giving up equity.
Fits when: revenue is already (or soon) flowing, you want to stay flexible, and there's a clean, traceable revenue base. Important: define early what counts as “revenue” (gross/net, refunds, fees).
Hybrid: security plus upside
A hybrid combines a smaller stake (equity or revenue share) with a fair base fee. This lowers risk for the building side while keeping everyone tied to success.
Fits when: the building side needs predictability but you still want a real partnership rather than pure contract work. The most common compromise in practice.
Fixed price: clearly scoped
A clearly defined scope at a fixed price — ideal for a first prototype or a bounded phase. No stake, but maximum clarity on scope and cost.
Fits when: the scope is genuinely clear and you want to get to know each other before committing to a long-term structure. Often the entry point that later moves into another model.
What to always watch for
Put the agreement in writing — even among friends. A simple document prevents the most expensive misunderstandings.
Clarify exit and vesting: what happens if someone leaves early? Vesting over time protects both sides.
Define the basis precisely (revenue? profit? which costs?).
Start small. A fixed-price prototype or a short hybrid phase shows whether the collaboration holds before you split shares.
And on Weaverly?
Weaverly is not a party to any of these models and holds no shares. You choose the model per project that fits your idea and stage — and set the terms directly with each other. Matching and the marketplace are free; you only pay for the shared Nest.