How Much Equity to Offer First Employee?
tom_rath: I'd offer only commission on sales (perhaps add in profit sharing if he'll do other work in addition to sales -- you don't want to penalize him for those parts of his job which do not involve selling), that way his performance will be rewarded directly.  It's your company and the equity is yours.  100%  It doesn't belong to someone you pay to work for you.He might have been "very helpful", but he's not risking everything to build a business.  He may have put in a few extra hours on the side here and there (and pay him for those if you'd like), but it really doesn't compare to the time and money you yourself have invested in the enterprise.It's your company.  You built it.This fellow's blog (and particularly this post) may be helpful for your situation:http://nukemanbill.blogspot.com/2008_05_01_archive.html