Startups Stack Exchange Archive

How much does a sales/brand manager deserve?

Let’s say that I got a great idea. I’m a programmer but I need someone who manage this branding thing, make a market study and found ways to reach our clients. I’ve contacted my friend and he wanted 50/50 but I didn’t agree so we finally ended at 60/40. We both are going to invest the same amount of time and money (in this case, 60/40). Is this a good way to spread the cake?

I’ve been working on other projects alone, and this is my first time going by a different way.

Answer 5992

If you both invest the same amount of time and money into the company then by logic you should split 50/50.

Also at this point you have nothing built yet so you're basically splitting an invisible pie, that is nothing. Same goes for your friend's talents. He didn't put any effort into the company yet, so by giving him 40% you're saying that whatever he'll do in the future, it will only worth 40%. So why should he put in 50% the time and money?

Think of it this way: Why does your friend want 50%? One possibility would be because he thinks that this is his company as well. He wants the company to succeed as much as you do, this is why he's willing to put in the same amount of time as you and this is why he feels that giving him 50% is justified.

Certainly I do not know what your friend thinks or wants, but I suggest that you talk to him about this, and about why he feels that he needs 50%?

If you're worried about what happens with the shares if your friend leaves you could set up a 4 year vesting period with a 1 year cliff.

4 year vesting 1 year cliff

This will protect you in scenarios where your friend decides to abandon you after a short period of time.

If you're worried about giving to much decision power to your friend you can do 51/49. This way you can say that you have equal stake in the company, but you retain that symbolic 1% so when it comes down to key decisions you have the power to make the final decision.

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