Business Partner profit sharing and share distribution

**Ellaynor** · 03-22-2011 06:07 AM

I started my business about 2 years ago. This business is in Malaysia. Its a chocolate business.

Someone is interested to work on Branding and Marketing of the company to generate more sales and to bring the company to a different level. What kind of profit sharing should I be offering this person and should I eventually give her shares too?

She is proposing 30% of sales from now onwards and when we reach 50K she wants 50% of shares. She predicts this figure will happen by the end of this year.

My investment in the company so far has been about 130K and the company still owes me about 80K.

Are her figures reasonable? They seem very high to me especially the 50% shares within 1 year. I do not feel comfortable parting with half of the company.

Can anybody help me with this?
Thank you

Ellaynor

**mattnelson** · 03-22-2011 03:44 PM

How much would it cost you to hire someone to do marketing and branding? Im a big fan of hiring employees over giving out shares, especially when you're a semi established business

**Parvaze** · 03-22-2011 05:53 PM

Ellaynor - While you can, and should, put together a generous compensation/incentive plan based on sales/revenue that this person would be generating, I wouldn't give up 50%, or anywhere near that much of the shares, unless the person was bringing significant skills and money to the table.