Equity distribution · Compensation

What amount of equity to give to someone who brings in the marketing/sales/pr expertise I need?

Jia Li

August 5th, 2016

I have a great product that my customers love. I design/sell women's reversible/multifunctional clothing that has been featured on national press and worn by celebrities. And I am looking to grow/scale. I have been the only founder of the company and bootstrapping for 5 years and invested a large amount of my own and friends/family money into it. I am more of a designer/creator than marketer, and now I want to bring on board someone who has great marketing/sales/PR skills to help me to acquire more customers. At this stage, what is the right amount of equity I should give as compensation? 

My initial thought is: 

Cash payment: 
 $650/mon + sales commission (2 tiers)
   - 10% under $75k 
   - and 12% on every $ over $75k (i.e. if we sold $100,000, then I'd pay (0.10*$75,000)+(0.12*$25,000)

Equity: 
1% per year for 5 years. Or perhaps 1.67% for 3 years

This person also has great network and fundraising experience. And if he did help bring in more investment, he'd like to get more equity.

I'd like to get some feedback on weather what I suggested above is FAIR, too HIGH or too LOW. And what is the best way to structure such offering so both my and new partner's interests are protected. 

I know also this really depends on the amount of results he can bring, but given it is unknown at the moment and I need to make a proposal, what are the terms I can offer? 

Thanks! 
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