How to properly compensate a friend/ sales guy in a startup? (I will not promote)
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I'm new to running a business and I own a small food business (still early stage, not stable profit yet). I built the product, handle operations, inventory, and reinvest most of the earnings back into growth. A friend wants to join to help grow the business. His main role which I value would be acquiring consignment partners (placing the product in stores/canteens). He also mentioned he can provide marketing strategy and business advice, but I see that as secondary since I already have access to similar ideas and information. He currently has a full-time job and would only work on this on the side with flexible time. The issue is: I need actual execution and results (new consignment partners, closed deals, revenue growth) He is asking for fixed salary + percentage of the business I can only offer commission-based pay + small allowance (transport + meals during work activities) right now I plan to set clear monthly targets (e.g. number of consignment partners acquired) My proposal is: Commission per successful deal Flexible schedule since he already has a full-time job Equity discussion only after 3â6 months of proven results and commitment On the other hand, I feel itâs risky for me to pay a salary or give ownership without seeing proven results in this specific business, especially since the business still cannot fund it unless I rely on capital? He has sales experience (call center), but no proven track record in actual business acquisition or bringing in consignment partners. Now I feel stuck because: I donât want to undervalue my friend But I also donât want to overcommit the business early I donât know if I should bet on potential or wait for proof What's the best way to structure this? Advice appreciated.   submitted by   /u/Ok-Consequence6411 [link]   [comments]
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