Equity · Equity contracts

Cofounder Profit or Developer Payout

Derek Vinebo Founder & CEO, Eventpady

May 29th, 2017

Hi. I started a platform and as a web designer, i worked on the front-end of the platform. I met a friend to work on the backend but due to lack of cash, i didnt agree any payment yet. Now we are about to launch and he is requesting 40% profit and to be a cofounder while he works only for 2more years and he could be free to be on his own. I need him to be the CTO but he turned that down. He only develops the product. What can of deal can i have with him that is fair for both parties so he wont have to much earnings on the long run even when he doesnt offer his services to us.

Javier Romero Senior Developer at CoFoundersLab

May 30th, 2017

Hi Derek,

Is the typical case of "I want to charge a lot but not take responsibility for anything". The correct would be to accept being a CTO if you want the profits and continue developing the application, but seen his attitude I don't know if it would be poisonous for your startup

Ganeshan Sujeeharan Royalist, Virtusan

May 30th, 2017

I experienced a scenario where I was offered to be the CTO but they offered me only 15% - 20% and wants me to work full time leaving my job and everything behind. I accepted the offer but worked as a part timer on that. responsibilities I had was to design the back end and full architecture of the system and once the things are designed to an extent I was asked to leave cause the commitment was not worthy. To my knowledge what I give for that 20% is more than enough

Derek Vinebo Founder & CEO, Eventpady

May 31st, 2017

What can I offer him as compensation from the platform. We plan to launch next month, and I want to make sure he doesn't feel I cheated him off. Now we didn't agree on any fee earlier on and I want to offer him what is fair but what would not affect the future of my startup financially cause giving someone 50% of profits even as they don't work with us again sounds ridiculous. But I don't want to severe ties with him.