Hi,
I have a question regarding the profit sharing in business startup. I am partnering with and helping a person to start his new business. He will invest the capital, set up a website, promote and sell products on his website. I will be responsible for natural product development from design, idea creation, sourcing, market positioning, marketing launch, regulatory updates, and liaison with vendors and contract manufacturers, but I do not contribute any capital. He is proposing a 5% of profit sharing from net revenues (income after expenses) on each product developed and supported (no salary request). My question is what would be typical percentage of profit-sharing for me in this type of setting? How much I should ask for, which would be reasonable and fair?
Thanks a million.
Tim