
Ask HN: How to land at fair shares distribution between founders - ramtatatam
I am about to meet with a colleague who I&#x27;d like to invite to my side gig.<p>I call this side gig, but I already validated the idea and I know who needs the product, I also have some connections who are decision makers and in genuine need for a product I&#x27;m about to build.<p>I&#x27;m coding myself, so I will be contributing (though this colleague is more skilled than myself).<p>What would be the fairest distribution of shares? In the past I had some bad experiences where decisions like this was left till the end causing tensions. This time I would like to settle everything upfront so everything is fair.<p>Does validated idea count like something valuable enough to translate into more shares than colleague? Or should I just do straight 50&#x2F;50? I was reading lots of stories where people advice against 50&#x2F;50 to avoid blockages in making decisions.<p>I was thinking about decision power and share in financial matters. I don&#x27;t mind to do 50&#x2F;50 when it comes to financial stuff, though based on above thoughts I think it&#x27;s fair to talk and negotiate about decision power.<p>Or maybe I&#x27;m totally wrong and should not even think about these matters at this stage?
======
giantg2
You also have to think of possible future ownership dilution if you bring
other people in or look for funding. If this idea has a chance to be very
lucrative and turn into a fulltime company, then you should probably have a
lawyer draw up documents.

If this is a smaller venture and you don't see this developing into a fulltime
job, I would say give them a cut of the profits without ownership (like some
company's yearly profit sharing). This gives them incentive in the company
performance but you retain the final say.

