Terms with Outsourced development team

I am starting a project where I am getting an offshore software company to develop my beta product. Even though I have a technical co-founder, but we are both involved with getting a beta client so thought would outsource the low level programming. We are going to develop the high level workflows and let them code the application. I am looking for advice on how I can come up creative ways to pay the offshore team. Some ideas that I have: 1) Come up with the number of hours/man months its going to take to develop the initial release and put a dollar value to it. So lets say its going to take 100 hours to develop the initial product and we put $10/hr, so makes it $1000 total. Instead of offering equity, I want to offer that once we make money or raise capital, we will give them $1500 back for the risk that they are taking. 2) Offer some sort of equity with a buyback option. Are there any other creative ways that any of you have used?