A friend of mine has asked me to come on board with him, full time, as a business development consultant. Specifically, he needs me to produce market assessments for his portfolio of product ideas (9 good; 3 extremely compelling ideas with patents, trademarks, copyrights, nearing prototypes) in order to prioritize each possibility and execute them in optimal order of 1. quickest to revenue, 2. quickest potential exit, 3. overall market size, 4. future potential broadening of product line.
I propose a small monthly fee (2400), well below market level, with an escalating equity position in the overall company; starting at 2%, leveling off at 5%. Also, need to make allowances for the risk I am assuming; ie. the diference between low monthly fee and what I would be making elsewhere.
Also, as these product concepts are being developed by the two of us, I will be named as part of the inventing team on patents in which I play a key role (many, if not most). This will change the equity position I require, should these products spin off into seperate companies.
Please note, I am not currently investing any capital into this. This may change down the line. But, let's assume it will not. My friend, the owner/CEO is using a fund he created from a portion of proceeds of the sale of his previous company. So, factor that into your thinking.
I realize the preceeding paragraphs may be a bit convoluted. And, you certainly more info to form a final opinion; I'm just looking for educated commentary, advice, suggestions etc.
Thank you in advance for your participation.