Ask HN: Partnership Compensation for Side Project?

2 points by ang 6 years ago | 1 comment

Does anyone have any suggestions on how I should structure compensation related to a side project I have that makes money?

- I am not incorporated yet. - I do not have immediate plans to raise for it, my main project is something else. - It's profitable, but not really profitable enough to just hire someone. - While it makes more money than it costs, it is not really a significant amount (yet).

The options I was weighing: - Get a cofounder and split it 50/50. - Hire contractors for one-off features (currently trialing this). - Get a partner(s) and split it something like 80/20.

Any thoughts?

apotheosis-neko 6 years ago |

This depends on the side project and the type of work you want to get done. All tech? Or tech work with all of the other work that goes with a startup?

If you want full support 50/50. If you plan on doing most things yourself then balance it, 80/20 or 70/30.

If it pays for itself, it would probably be best to keep 100% until the project is more formalized (a company exists). Equity is quite precious and is hard to get back if your teammate does not work out.