Offer your thoughts or opinion on the input financial query or topic using your financial background.

100% Ownership and 30% profit to sale director
Perhaps an example will help make it more clear. Any given year:  Revenue:  200K, profit 60K You get 40K in profit, plus any salary, he gets 20K Next year you attract the attention of a competitor and they offer and you accept to sell.  You would get 100% of the proceeds. This is kind of a bad deal for him as you could easily play accounting tricks to diminish the company's profits and reduce his pay.  For the given example, you could pay yourself a 60K bonus and reduce the profit to zero and eliminate his compensation.  There should probably be a revenue metric included in his compensation. Edit: It is really nice to hear you have a desire to treat this person fairly.  Honesty in business is necessary for long term success.  I would simply make his salary dependent upon the revenue he generates.  For example, lets say you can make a widget for 4 and you expect to sell them for 10.  Your profit would be 6, and with the suggested split he would receive $2, you $4. Instead I would have him receive like 15% of the revenue generated This allows for some discounts for bulk items and covers the cost of processing sales.  It also allows him to share revenue with his staff.   Alternatively you could also do a split.  Perhaps 7.5% of revenue and 10% of profit.