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I've been thinking about this type of problem recently so very timely question. IANA Employment Lawyer, so take everything here with a huge grain of salt, but

I've been thinking about this type of problem recently so very timely question. IANA Employment Lawyer, so take everything here with a huge grain of salt, but is the separate product going to be a separate company? If it is would some mix of equity + cash work? If not, it seems like some custom contract based on the product and its dedicated revenues/profits might be necessary with lawyers involved. To zoom out a bit, the problem I've been honing in on is that there are a lot of companies that may want to issue profit-sharing like agreements or revenue share that have no plans to exit/IPO/go huge. But no one, especially early on when they're small or solo, wants to go hire a lawyer to write these contracts. I wonder if we can create good templates for rev/profit shares for solo/indie/bootstrapped businesses. Think the SAFE that YC created, but more around profit or revenue shares. If this is interesting to you shoot me a msg would love to talk to others who are seeing this type of problem. Also, if you know Gumroad, they're building out a new product called Flexile.com that enables companies to hire contractors but also give them equity/dividends. It's not released yet, but may be worth looking into and getting on the waiting list. May or may not solve this exact problem but it's in a similar realm.

hiphipjorge 4y ago
> IANA Employment Lawyer, so take everything here with a huge grain of salt, but is the separate product going to be a separate company? If it is would some mix of equity + cash work? If not, it seems like some custom contract based on the product and its dedicated revenues/profits might be necessary with lawyers involved. It will be, yes! I do think it should work. I think I'm slightly worried about how much is appropriate given an unspecified time commitment. > But no one, especially early on when they're small or solo, wants to go hire a lawyer to write these contracts. I wonder if we can create good templates for rev/profit shares for solo/indie/bootstrapped businesses. Think the SAFE that YC created, but more around profit or revenue shares. Think this is a fantastic idea actually! I think there's a lot of projects out there that would benefit from this type of risk sharing in a way that would make sense for both parties. > If this is interesting to you shoot me a msg would love to talk to others who are seeing this type of problem. I'll definitely do that. Let me try to do a bit more research on my part too! > Also, if you know Gumroad, they're building out a new product called Flexile.com that enables companies to hire contractors but also give them equity/dividends. It's not released yet, but may be worth looking into and getting on the waiting list. May or may not solve this exact problem but it's in a similar realm. Super interesting. Will go and check it out!
- ernestipark 4y ago
  If it will be a startup in the more traditional sense, slicingpie.com also exists. The idea is basically dynamic equity allocated based on everyones contributions.

hiphipjorge 4y ago

> IANA Employment Lawyer, so take everything here with a huge grain of salt, but is the separate product going to be a separate company? If it is would some mix of equity + cash work? If not, it seems like some custom contract based on the product and its dedicated revenues/profits might be necessary with lawyers involved. It will be, yes! I do think it should work. I think I'm slightly worried about how much is appropriate given an unspecified time commitment. > But no one, especially early on when they're small or solo, wants to go hire a lawyer to write these contracts. I wonder if we can create good templates for rev/profit shares for solo/indie/bootstrapped businesses. Think the SAFE that YC created, but more around profit or revenue shares. Think this is a fantastic idea actually! I think there's a lot of projects out there that would benefit from this type of risk sharing in a way that would make sense for both parties. > If this is interesting to you shoot me a msg would love to talk to others who are seeing this type of problem. I'll definitely do that. Let me try to do a bit more research on my part too! > Also, if you know Gumroad, they're building out a new product called Flexile.com that enables companies to hire contractors but also give them equity/dividends. It's not released yet, but may be worth looking into and getting on the waiting list. May or may not solve this exact problem but it's in a similar realm. Super interesting. Will go and check it out!

ernestipark 4y ago
If it will be a startup in the more traditional sense, slicingpie.com also exists. The idea is basically dynamic equity allocated based on everyones contributions.