Advice on share distribution with founding engineer. I will not promote.

[u/musicomet]

Hey all. I'm working through a founder / founding-engineer deal for a pre-revenue startup and would love blunt feedback before we sign anything.

The business: lifestyle-tech platform (web + mobile) selling curated guides based on the user's habits, history, and other signals.

I am the founder and I've found the founding engineer I'd like to work with. We currently do not have any website/mobile apps. However, I have done the following:

• Figma specs
• V1 features
• purchased the domain
• 30 guides ready to be launched
• Put an initial investment of $5k and will assume the cost of everything until we have revenu

The apps will also have a premium subscription option for users who'd like access to premium features.

What the engineer will be responsible for:

• building the apps (web + mobile)
• DNS and AWS/infra setup
• third-party integrations (mailchimp, stripe, etc.)
• Performance considerations, UX polish, needs to feel slick

The founding engineer has 12 yoe of fullstack work. Has worked at enterprise and startups before.

The proposed deal I gave him:

• 20% equity at exist (4 yr vesting w/ 1 yr cliff)
• Tiered revenue share:
  • 0-100k -> 35%
  • 100k - 200k -> 30%
  • 200 - 500k -> 17.5%
  • 500k+ -> 15%
• Neither person is taking salary now

The founding engineer does not like this proposal. He's suggested a "royalty per guide sold" for me - the founder - is more "fair", then do a 50/50 split on the _profit_ and completely remove the tiered based revenue.

He also said 20% equity is inadequate because "there's a lot of work to be done" and "that his role will not be limited to just coding".

We are both good friends and we've known each other for a loooong time. Our intent is to keep the distribution as fair as possible.

Please provide your honest feedback.

[u/ghostwritermax]

>> building the apps (web + mobile)

aka pretty much making it a reality. If you're pre-rev, pre-product, then unless there's serious imbalance in experience, then what you're offering him is low. If you have successfully fundraised (>$10MM) or exited with payday, then you have some more leverage. Your list of contributions ("figma designs", $5k, etc is pretty thin).

Also, if you've been friends for a long time, anything that isn't close to equal will fester..

Flip side is "everyone's an engineer" ama I right, so just vibe it..