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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.

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:

📄 open-royalties-full.md

  • 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.

📄 open-royalties-simple.md

  • 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.

📄 open-royalties-partnerships.md

  • 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
  • And what total return your backers receive (for example: you might share 5% of revenue until they’ve received 1.5x what they gave you).

✅ Exit plan

If you sell the project before everyone’s paid back:

  • You pay out a fair share based on the reference price.
  • It keeps things honest and avoids surprises.

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.
  • Protected: clear reference price means fair payout if plans change.

How to use it

  1. Pick a template – full or simple.
  2. Fork or download – tweak for your project.
  3. Set the basics: revenue %, return multiple, reference price, and steering committee setup.
  4. Get legal eyes on it – always smart.
  5. 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.


Disclaimer

These templates are not legal advice. Always get a real lawyer to check your final terms.


Fund your next project simply. Share the rewards fairly. Build what you want – your way.

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The missing funding framework for bootstrappers, indie hackers, and creators

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