I apologize if this thread already exists (searched searchYC and didn't find anything on profit sharing)<p>What are your thoughts on investors getting a share of the profit vs getting equity? What percentage equity would equate a 10% profit share? How does this change from a short-term and long-term perspective?<p>Thanks for any input!
I've been thinking about profit sharing, not in the context of investors per se (who probably _should_ get equity), but the teams around various projects in my nascent company. I want to put things together quickly and formalize rewards with a barrier to ownership, investment and selling the company. The structure is generally one that maintains or ramps rewards for involvement and attenuates them over time (~1yr) as they leave. And the details can be explicit and open to all.<p>Thoughts in this vein?