I am a start-up (LLC) that now needs to hire a VP of Sales. We have no full time employees except myself. He would be working parttime or actually even less, like 3/4 hours a day max.
We do not have enough revenue in the company to actually set-up salary. He is asking for 10% of the revenue. I am looking for guidance as to what is a fair incentive in such fast growing / initial stage company:
- Should I simply tie him up to profit instead of revenue? If so how much is fair?
- The Revenue of the company will increase (therefore the profit). Should I have an adjustable profit % => getting smaller when certain targets are hit?
- Any contract example I can download to formulate the legal document? I would like to avoid a lawyer as I cannot afford it.
- Can I see an exti strategy in the contract, like I reserve the right to cancel the contract annd incentive with 30 days notice; however he will be pissed off if he set-up a big account and does not receive the reward. I can set-up a contract so that he gets the profit incentive during 6 months after the contract is cancelled?
Any help or guidance is greatly appreciated!