5 ms·
Instead of a fixed equity allocation, have you considered a dynamic allocation system instead? All contributions (cash, time, relations etc.) are converted int
by scribu 9y ago
Instead of a fixed equity allocation, have you considered a dynamic allocation system instead?
All contributions (cash, time, relations etc.) are converted into “slices”, with a certain multiplier for risk. For example:
* if someone contributes $X cash, they get 4X slices
* if someone contributes work that normally has a $Y hourly rate, they get 2Y slices for each hour
* if someone brings in a client for which they would have normally charged a $Z commission, they get 2Z slices
You freeze the pie when you are bringing in sufficient revenue to afford paying everyone a market salary.
% equity = slices owned / total number of slices
You can learn more about this method at https://slicingpie.com https://slicingpie.com (not affiliated, just think it's a better way of going about this)