Building Apps for people who submit ideas

Brendan Flowers

Myself and 3 others are considering an idea. We are all involved in app development, 2 of us learning and another 2 who are at an advanced level. We were thinking of advertising for people to present ideas for apps to us and we would decided whether or not to take on the project. If we did take it only then ownership would be split between both parties and we would create it. I have seen similar ideas like the appvillage but I suppose we are trying to keep this local.

We would want potential partners to sign NDA's to encourage people to present to us without the worry of having their idea stolen. But how effective are NDA's? How can it be proven that someone leaked an idea if it ever happened that a similar app was created (which Im sure could easily happen)?

Also what are people's opinion on this idea? I know my post was very basic but this idea is just something that was briefly discussed between us when we were talking about ways to possibly make some extra money!

Buttercake

Good idea and best of luck

My thing would be who's going to do the donkey work and who's going to do strategy. If the person presenting the idea sits back for a year while you do all the development work. Scope creep is a huge thing for app developers and can increase time & costs. the idea is novel but I would cover myself.

Brendan Flowers

Buttercake wrote: »

Good idea and best of luck

My thing would be who's going to do the donkey work and who's going to do strategy. If the person presenting the idea sits back for a year while you do all the development work. Scope creep is a huge thing for app developers and can increase time & costs. the idea is novel but I would cover myself.

Thanks! Well we have 2 "expert" app developers in the group and they would focus on creating the apps. Myself and the other person would focus on the marketing and how to monetizes the products.

I agree with you about the involvement of the person who presents an idea. Depending on the work involved to bring an app to market and potential returns would be what we'd use to determine the % we'd look for off the person with the idea.

aristotle25

Not too sure on this idea. You are aiming to go into business with multiple business partners (always risky in terms of being a success) and it looks like you won't get any money unless the app generates money?
How long can you survive without making money?
How many apps are out there that don't make money?
How are going to evaluate an idea brought to you? How do you know the person with the idea is smart and going to make the app a success?
Have you a business plan?

What legal set up will you have with these people\business coming to you ideas? partnership? Tax returns ?

Seems like you are taking on a lot of work just see if some other persons idea works.
If you are good at building apps I would just offer that for a fee. Never mind % sharing.

smash

I can't see anyone wanting to split the ownership of their business idea with yourselves on the basis that you would create their app for them. Anyone with a good idea will get funding and grants and will pay to get the app done so they keep ownership of their product.

jimmii

I would imagine there are quite a lot of people in a position similar to myself. I have an idea for an app and nowhere near the skills or the time needed to create it or even see if its viable so something like this would suit me perfectly. Having equity wouldn't even be something I was that worried about it would just make life a lot easier having it available!

AndyJB

Brendan Flowers wrote: »

Myself and 3 others are considering an idea. We are all involved in app development, 2 of us learning and another 2 who are at an advanced level. We were thinking of advertising for people to present ideas for apps to us and we would decided whether or not to take on the project. If we did take it only then ownership would be split between both parties and we would create it. I have seen similar ideas like the appvillage but I suppose we are trying to keep this local.

We would want potential partners to sign NDA's to encourage people to present to us without the worry of having their idea stolen. But how effective are NDA's? How can it be proven that someone leaked an idea if it ever happened that a similar app was created (which Im sure could easily happen)?

Also what are people's opinion on this idea? I know my post was very basic but this idea is just something that was briefly discussed between us when we were talking about ways to possibly make some extra money!

Certainly an interesting idea. You mention it’s a potential way to get some extra money, so I presume you’re all either working somewhere or are students. If my assumption is right, how would you balance the time needed for potential projects and those of your day job?

Either way in the short term you could only work on 1 or at max 2 projects without the whole quality side of things falling apart. You’d need to produce A1 code/apps first time or you’ll get caught in the whole rewrite/bug fix loop very quickly.

Here’s some things to mull over…..
1) You'll review potential projects to get involved with, but you guys will also need to show that you can produce the goods! What projects have you worked on individually or as a team???

2) Take a look at the Online Trading Vouchers on offer from the Local Enterprise Offices and target potential clients in this space.

3) and/or in the short/medium term concentrate on quick turnaround projects that only need high functioning prototypes / beta versions to help clinch funding. Take a smaller stake, but put an ongoing development proviso in an agreement. Agreement could possibly state a copywrite share of the apps/software produced for a fixed period of time or ongoing, thus preventing people using you and then walking away with a finished product.

That’s my few cents worth. If you do take the concept further be sure to let us all know.

Best of luck.
AJB

The Corinthian

Brendan Flowers wrote: »

We would want potential partners to sign NDA's to encourage people to present to us without the worry of having their idea stolen. But how effective are NDA's? How can it be proven that someone leaked an idea if it ever happened that a similar app was created (which Im sure could easily happen)?

NDAs are of limited legal value. For example what is the idea? NDAs are all very well, but one thing I've noticed over the years is that it's their word against yours where it come to what was actually discussed, because this is almost never actually defined or recorded anywhere.

NDAs typically are indispensable to idiots and VCs who will sometimes demand them of potential ventures for insurance reasons. That's about it.

Brendan Flowers wrote: »

Thanks! Well we have 2 "expert" app developers in the group and they would focus on creating the apps. Myself and the other person would focus on the marketing and how to monetizes the products.

What is your background in app marketing? Any marketing? Or are you going to take up the marketing because you are never going to be one of the serious developers?

This is important, because developing an app is actually easy. Getting people to notice it, download it and making money from it is by far the more difficult part of the business.

smash wrote: »

I can't see anyone wanting to split the ownership of their business idea with yourselves on the basis that you would create their app for them. Anyone with a good idea will get funding and grants and will pay to get the app done so they keep ownership of their product.

The level of funding for a serious app venture is beyond what is available in government grants and such. Funding or paid development at market rates would almost certainly require VC or private investment, which will require a sacrifice of equity.

Overall, there is some merit in your idea, but you need to be looking for potential partners who have more than just an idea - after all, if that's all they're bringing to the project, what exactly will their role be? To sit around and call themselves CEO, despite having neither experience or talent for such a role? Dead weight.

Secondly, all you appear to be offering is the expertise of two mobile (what platforms and/or OSs?) developers and two vaguely technical guys who may or may not have some marketing knowledge. That probably isn't enough to be profitable.

smash

The Corinthian wrote: »

The level of funding for a serious app venture is beyond what is available in government grants and such. Funding or paid development at market rates would almost certainly require VC or private investment, which will require a sacrifice of equity.

I know this, but my point was on the basis that I understand the OP means 50% equity when he says "then ownership would be split between both parties". Maybe I'm wrong, but that's how I took it up.

This has to be a part time gig for the OP because himself and the developers can't be hanging around for long periods without getting paid while they wait for an app to generate revenue. While some people might be happy to hand over half their company and let their idea take months to develop, most will try to get funding together through VC, grants, loans etc. If you can't get any of these then there's a good chance that it's not a viable business idea.

The Corinthian

smash wrote: »

I know this, but my point was on the basis that I understand the OP means 50% equity when he says "then ownership would be split between both parties". Maybe I'm wrong, but that's how I took it up.

TBH, how much they might hand over to a technical partner depends upon what both of them bring to a venture - I don't know where 50% comes from. The problem with a lot of 'idea' merchants is they don't actually bring anything other than the 'idea' to a venture. Getting to keep 50% in such circumstances is actually quite generous, IMHO.

Similarly, some founders may lack the technical skills, but they come to the venture with market contacts, customers lined (or signed) up, industry-specific knowledge or experience, and often capital too. They're not going to giving away anything close to 50% to anyone.

beauf

Seems like you want to be app developers who take a % of the business that goes through the app to offset the cost of the app. I think that would be hard sell. Even if you agree a decreasing % over time.