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by ernestipark
1281 days ago
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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 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. |
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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!