Ask HN: Partnership Compensation for Side Project?

2 pointsang6y ago1 comments

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?

1 comments

apotheosis-neko6y 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.

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