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? What type of sharing from net profit or from net revenue? How much I should ask for, which would be reasonable and fair?
Thanks a million.
Tim
A question regarding the profit sharing in business startup: how much and from gross revenue or net?
- Posted:
- 3+ months ago by tj_note
- Topics:
- sharing, profit, small business, startup
Details:
Responses (1)
If you're new to business, or just unfamiliar with the accounting aspects of business, terms such as net sales, net revenue, cost of sales and gross margin may be confusing, even intimidating. But success a grasp on this concept is the first step toward evaluating your company's efficiency and profitability.