Publishing Model Hub-and-spoke

75 / 25

Dewdrop revenue flows 75% to Tim Culpepper as the IP owner, and 25% to 9Bit Studios as a platform services fee — then distributed to all three founding members by equity. Same model applies to every member product.

The principle

"Nobody gives up what they built. Everyone gains what they couldn't build alone."

Tim Culpepper keeps 100% ownership of the Dewdrop IP. 9Bit Studios doesn't buy or absorb it — instead, Tim Culpepper licenses Dewdrop to 9Bit Studios for publishing, marketing, and distribution. In exchange, 9Bit Studios provides the platform: Apple Developer Organization account, Oksana intelligence, shared design system, brand channels, and go-to-market machinery.

How money moves

The revenue flow, end to end

Step 1

App Store collects gross revenue

Users pay $4.99/month or $39.99/year. Apple takes 15–30% per Small Business Program rates and remits net revenue to the 9Bit Studios developer account.

Step 2

Net revenue splits 75 / 25

Of net revenue received by 9Bit Studios, 75% is paid out to Tim Culpepper as IP owner; 25% is retained by 9Bit Studios as a platform services fee.

75% — Tim Culpepper (IP owner)
25% — 9Bit Studios
Step 3

9Bit Studios' 25% distributes by member equity

The platform services fee is distributed to all three 9Bit Studios members by equity share. Tim therefore receives both the 75% IP owner share and his 20% slice of the 25% platform fee — roughly 80% of total Dewdrop net.

Penny 55%
Arthur 25%
Tim 20%

Member math

What each member receives per $100 of net Dewdrop revenue

🌱

Tim Culpepper

$80.00

$75 IP share + $5 of the 25% platform fee (his 20% equity)

Penny · Pennylane Media

$13.75

55% of the 25% platform fee

🎮

Arthur · Always a Monster

$6.25

25% of the 25% platform fee

Per $100 of net revenue · Totals to $100.00

Illustrative scenarios

Monthly revenue at three subscriber levels

Conservative projections based on $4.99/month pricing, 30% Apple cut in year one, and the 75/25 publishing split. Year-two Apple cut drops to 15% under the Small Business Program, increasing all member shares.

Subscribers
Net to 9Bit
Tim receives
Studio members
500 monthly
$1,747
$1,397
$350 split
2,500 monthly
$8,733
$6,986
$1,747 split
10,000 monthly
$34,930
$27,944
$6,986 split

Studio split distributes per equity (Penny 55% / Arthur 25% / Tim 20%). Tim's "receives" column already includes both his IP share and his equity slice.

Why this structure

Three things the model preserves

1. IP ownership stays clean

Tim Culpepper owns Dewdrop forever. The license to 9Bit Studios is terminable, scoped to publishing rights, and revertible if the partnership ends. No buyout, no IP transfer.

2. Platform value is shared

Tim, Penny, and Arthur all benefit from every member product because the platform fee distributes by equity. PillDrop and FeedDrop will work the same way — and so will Arthur's eventual game titles.

3. Build fees are separate

The $5,000 Dewdrop build fee compensates Penny for development labor. Equity and revenue splits are about long-term ownership and platform value. The two never get mixed up.

Read more

The full org framework lives on the studio business hub

Hub-and-spoke explainer → Fee schedule Partnership terms