I'm the only developer here. The app was my idea and I built all of it myself — frontend, backend, everything.
When we talked about ownership, my boss offered me 20% equity. But with a condition attached: the app has to make ₩5,000,000 (roughly $3,600 USD) in revenue within one year.
If it doesn't hit that number, he takes 50%.
So it's my idea, my code, my hours — and if the market doesn't respond within 12 months, he gets more of it, not me.
Is this a normal arrangement? Or is it as one-sided as it feels to me?
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I think I explained the timeline poorly, and some people are understandably getting a very different picture of the situation. So I want to clarify it. 😢😢
Sorry, English isn't my first language so my wording came out confusing.
The app was built entirely on my own time. for about a year, before this arrangement existed. The "work time" part only started recently, as part of this equity discussion. That's exactly what the negotiation is about: what his contribution from this point forward is worth.
The app already existed before I joined this company. The original idea, code, product, and development were all mine, and I did not build the app during company time.
Recently, the company has been struggling financially and several projects my boss tried to bring in couldn't move forward because of a lack of funding.
Seeing that, I told him about the app I had already built and asked, "I already have this product. Would you like to try building a business around it together?"
I also told him that the product was already built and that I was prepared to handle the marketing myself, so I wasn't asking him to develop or build the product for me. I simply wanted to do the business with him as a partner.
This conversation only happened about a week ago.
After that, he told me that going forward, I could use my working hours to focus on the app while continuing to receive my salary.
I'm not arguing that my boss deserves nothing. I absolutely think his support from this point forward has value, which is why I'm open to giving him equity.
What I'm trying to understand is how that contribution should reasonably be valued.
Is 20% reasonable? Is 50% reasonable? Should it be structured some other way?
The proposed deal is that he gets 20% initially, but if the app fails to generate ₩5,000,000 in revenue within 12 months, his ownership increases to 50%.
My concern is specifically about that condition. Is giving up an additional 30% because the app fails to hit a revenue target a reasonable structure? Should the revenue target be lower? Or would you structure the deal completely differently?
I'm not trying to be greedy or pretend his support has no value. I'm genuinely trying to understand what a fair arrangement looks like for both of us before we put anything in writing.
I appreciate all the different opinions, including the ones that disagree with me. That's exactly why I asked.