Asking for a flat rate of any amount I don't think is a good idea. Some apps / ideas just need some good direction and can be developed in a day if you marry the right programmer / marketer. Others might take weeks of sweat equity and much more time in the end.
Yes, I think that setting a flat rate isn't the best way to go but it is so to facilitate the initial tests of the service. We don't wanna spend time calculating the value of an IDEA. If the entrepreneur doesn't see enought value on us to "invest" 30% of his idea on it, that's ok, he will find another way to turn his idea into reality =)
We know that there is a niche which we will fit perfectly, we don't wanna take over the world. After all we won't even have the time to invest in more than a couple projects at the same time.