Requesting some friendly advice on commercial licensing, if anybody can spare

Hey, fellas.

Sorry if I’m asking too much of this forum, but I’m new to licensing software for $$$, and I could use the advice.

So, I’m developing a programming language, and I want to charge licensing fees for it.
I made my own license for non-commercial development, and I’m using the Patron license for commercial exceptions.

I’ve been contacted by a developer who wants to use my language, but is not currently in a position to pay me a monthly Patreon subscription.

They suggested instead a percentage-based agreement with annual royalty payments.

So, if they make 0$, I make 0$, but if they make money, I get some percentage of revenue.

Sounds fairly straightforward, and I’m open to that idea.

Does anybody know of a useful template for an agreement like that?

Who would the licensee be? The developer? A company they own?

What if that have no company? I have to tell them to constitute a company and only afterwards we can sign an agreement?

I don’t have a company. I was just going to get paid directly through Patreon.
Do I have to constitute a company before I enter into an agreement like this?

I’m sorry for the silly newbie questions, but I’m kinda new to this and I don’t want to make some dumb mistake.

1 Like

Hi! Welcome to the forum.

I’m not aware of any published template agreements for that kind of deal. I can’t give you accountable advice for your specific situation, but I don’t see an issue with the approach in general terms. “Revenue sharing” is a well established business concept.

Relatedly, I’d be interested to hear from folks with knowledge or experience about how people and companies have monetized language development as a general class of software.