I am working with a very highly placed 3rd party to identify an institutional founding/funding co-partner. This person's access is exceptional; I know him to be extremely effective and principled, and I want him around. How do I properly incentivize him and reward him to find and help me close just the right deal? Note: When I worked for a consulting firm, we offered a non-trivial, one-time %-of-contract revenue share to honchos who brought in clients. Once up and running, I'd like to incentivize any number of third parties who bring me a buyer. In the immediate case, however, the intermediary in question is in position to bring me a founding, institutional partner. Seems the incentive and reward should be higher. Agree?
Thanks everyone. More detail clearly is in order.
The 3rd party is question has been working with me as an informal advisor since the inception of my business concept. He is supremely connected; right on top of the value proposition and the market -- he invested millions of dollars for his PREVIOUS employer in developing a COMPONENT of my model (i.e., data analytics for career development), and he has contributed immense value to my company'snadvancement already, in introductions and shining recommendations.
MEANWHILE, I have been advised by three friendly VCs to consider shifting my focus from B2C to B2B, to monetize optimally. The last VC suggested I find an institutional partner with "reach" to help fund and distribute my product. That would be done in several verticals (that same VC recommended narrower than broader). The party in question is in a position to open 4 or 5 such doors.
SO, I recruiting him to my advisory board, with a small equity incentive, now that he is a free agent. At the same time, I want to motivate and reward him for successful introductions, co-pitches, and -- eventually -- closing the right deal.
I will look carefully at the Lehman formula (thank you Thomas Kaled), and I appreciate your various suggestions and recommendations. Further guidance most welcome!
Best to all,