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I own a small service business and have growth plans that include the development of an online infrastructure requiring the skills of a software/web developer. I have interviewed and selected a person who fits my needs and we are in the negotiation stage.
I feel that it is important for this person to have a vested interest in the company in order to help insure the quality of the finished product and ongoing maintenance. There will be approximately 350 hours of sweat equity or $30k in value provided up front and then his role will scale back to a CTO role where maintenance and updates will be all that is required.
My QUESTION: What terms would be "fair" for me to offer in this situation? We are both interested in a long term relationship (with the proper exit strategy) but, my concern is giving up too much of the company over the long term for the right risk/reward for the developer to be interested in doing the work in the short term.
Thanks for your time in advance!
Rich