I’m working on an idea for a Saas based product in the remote learning space. It could be targeted to individuals but the most profitable area would be existing marketplace type sites with existing experts and clients.
I met a very interesting guy with great contacts in a couple of such marketplaces. He’s a very experienced entrepreneur and dealmaker and initially offered to give me some seed funding in return for % equity. Most likely his long term goal would be to grow the company like crazy to sell but that’s not what I’m interested in - I want to stay reasonably small and to retain full control of things. So instead, I want to offer him a profit sharing arrangement on any deals he helps broker.
So I’m wondering: has anyone here used someone like that before? In effect I guess he’d be an external sales person.
What’s a reasonable percentage to offer? (I think SaaS sales folk can get in the area of 20%?)
And what’s best way to structure deal - is it a % of profits for eternity or for a limited number of years (say, 3) or some other cap?
Appreciate any advice.