Open Royalties
A simple, open framework to share project revenue with early supporters – without the usual strings attached.
What is Open Royalties?
Open Royalties is an easy way for builders to get upfront cash for new projects without selling equity or taking on rigid loans. It's designed for projects that are focused on generating revenue – not speculative moonshots hoping for a big exit.
You raise money from early supporters – they back your idea upfront, and you share a small piece of project revenue as you earn. No big promises. No forced exit. Just clear terms, aligned interests, and real revenue sharing.
Background: Why this exists →
Why this exists
A lot of modern businesses don't fit old-school funding.
- Banks: want collateral and assets.
- VCs: want moonshots and unicorns.
- Revenue lenders: often have punishing fees or inflexible terms.
Open Royalties fills the gap: a simple, flexible way to raise funds for a specific product, feature, or launch – and reward early backers as soon as money comes in.
What's included
This repo includes three ready-to-use templates for setting up fair, clear royalty deals:
Full Agreement
Includes a steering committee with a seat for your backers. They get a say in the project – not full control – so you keep creative freedom, but they stay in the loop. Works well for bigger rounds or a group of backers pooling funds.
Simple Agreement
Includes a steering committee - but no formal seat for backers. You run the project fully yourself while sharing revenue as agreed. Great for small, quick deals where you want minimal oversight.
Partnership Agreement
For non-cash deals - partners contribute skills, IP, or work instead of money. Clear royalty split based on contribution instead of investment. Perfect for collaborations without giving up equity.
All versions are project-based – so the rest of your business stays untouched.
How it works
A royalty agreement is just a fair trade: You get upfront cash to build, launch, or grow – your backers get a slice of the revenue that comes in later.
Reference price
The reference price is a simple agreed figure for what the project is worth – like a safety net. If you shut down, sell, or merge the project before everyone's paid, the reference price makes sure your supporters get a fair payout.
It's not about "valuation" in the VC sense – just a clear number everyone agrees on, to protect both sides.
Revenue share & payback
You decide:
- What % of project revenue gets shared
- For how long
- If there's a cap on the total return your backers receive (for example: you might share 5% of revenue until they've received 5x what they gave you).
Royalties are based on gross revenue – only payment fees, refunds, and taxes are deducted. No murky "expenses" to argue about. Backers can easily verify their share, and builders are motivated to spend wisely since costs don't reduce what's owed.
Built-in exit protection
Backers are protected if you sell, merge, or shut down the project:
- They receive a fair payout based on their share of the reference price.
- No waiting for a "maybe someday" exit – they're covered either way.
This keeps things honest for both sides: builders can exit when it makes sense, and backers know they won't be left empty-handed.
Who this helps
- Indie SaaS with paying customers
- Course creators & digital product builders
- Game studios funding one title at a time
- Micro-entrepreneurs with side projects
- Founders with multiple small bets that earn revenue
Why builders love it
- Easy: plug-and-play agreements, simple terms.
- Fair: clear revenue sharing – not equity or control.
- Flexible: fund just what you need, when you need it.
- Honest: backers get paid when you get paid.
Why early-stage backers should love it
Backers aren't stuck waiting years for a big exit – they get returns from day one of real sales.
- Early upside: the minute revenue comes in, they share in the success.
- Aligned goals: the more the project earns, the better for everyone.
- Exit-protected: if the project sells, you get your fair share – no hoping for a payout that may never come.
How to use it
- Pick a template – full or simple.
- Fork or download – tweak for your project.
- Set the basics: revenue %, return multiple, reference price, and steering committee setup.
- Get legal eyes on it – always smart.
- Sign, build, share – together.
Contribute
Got an idea, a tool, or real-world feedback? PRs and issues welcome – let's keep this simple and useful for everyone.