A professional colleague/friend of mine is putting together a product that is in demand from Educators and students and has asked me to join in - he has funded the wireframing of the online venture and will fund the building of the website. He has asked me, as someone who has the right "connections" to be the lead sales/implementation person and sell the product. I will use my personal connections and experience in the industry to market the online product.
He will be working full time out of his office abroad and I will only have time to work on it part-time in the US. I will not be paid a salary - but my participation and connections are important to the venture.
He brought up the original idea - and I have expanded on it. I am being offered 10% equity in lieu of any salary. If the product is $50, I make $5. He thinks we can sell $1 million the first year, I am skeptical of this...it is a subscription so he believes the profit will continue. I think it could be acquired if this works - but then what happens?.
He has experience as an entrepreneur and is 15 years my Senior and is managing the building and business end as well as International Sales. I have the credentials and name recognition to sell the product in the US.
What seems fair? I've never been an equity partner before and would be considered a "first employee" I guess. He offered 10% but wants me to feel compensated (ie: I think there's room for negotiation). but I want to be fair and smart about it.