Will need to do 10,000 apps to make $1.4M in revenue. Pretty tough business. If I were CEO I would raise your 4% fee and charge more than $3,500 per app.
I have a feeling their numbers are soft for a reason. 5000 is a solid investment, 3500, thats a small portion of dayjobs income i could drop to get a sideproject trialed. 4% is also very minor, where 5+ would likely look a little too middleman-y for my liking.
Limit the size of the project, limit the size of the investment, limit the cost.
Going forward I expect they will have to do some form of tiering once they see the type of work is in demand, and which type of work is achievable by their developers (which all is still unknown at this point) Example tiers: 500-1000 = quick site, 3500 = mvp, 5000-10000 = soft launch
