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I have recently found an opportunity to help a family-business expand its sales, in exchange for a percentage of the additional income and in the future equity percentage. I have recently list out some terms for a contract. What kinds of details should we look for in terms of ironing out details?

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migrated from money.stackexchange.com Jun 15 '11 at 20:35

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up vote 2 down vote accepted

Try to find a standard, boring, tried-and-true way to structure your agreement.

In this case it sounds like you're proposing to be a salesperson.

So I would propose a base salary (it can be as low as zero) and commission rate, with, perhaps some bonuses for meeting certain targets. There are many, many different ways salespeople are paid, but it's usually base plus commission plus bonuses.

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Can't believe the infamous Joel answered my question on Stackexchange. I'll be having a discussion with my business partners and see how it goes. It's most likely finalization and clean-up adjustments of verbally agreed terms (but didn't finalize as both parties don't know what to expect). –  stanigator Jun 16 '11 at 3:38

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