If you are doing freelance and consulting work, and not product development, then you should set up some type of hourly billing system, or consider setting up s

If you are doing freelance and consulting work, and not product development, then you should set up some type of hourly billing system, or consider setting up some type of'finders fee' for the work he brings in. It should be noted, that most freelancers/consultancies do not need a full time bizdev guy until they have at least a handful of employees and are working on a few projects concurrently. With that said, if he can bring in enough work, it may be worth it (and it should be noted that you will need a lot more than $3000 to keep you both afloat). Also worth noting, equity in freelance/consulting companies is relatively worthless. Billable hours do not scale, so your revenue will be directly tied to the number of hours you and your employees can work. Because of this, you need to focus on making sure you get a decent salary/hourly wage as soon as possible.