Looking for equity partners? I've used Slicing Pie to make $280k @ launch

I've done a lot of startups. (Looking for my next one). The last one I launched one to hit $280k at launch. Another hit $72k/mth as a recurring thing that uses Skool...

The thing they all had in common was a slicing pie partnership agreement .

So what is it? Slicing Pie is a dynamic equity agreement thats 10+ years old and like a "equity cliff" but slices are earned instantly.

Its like this:

Most partnerships might agree to work together 50-50%, or 3 people at 33%-33%-33%.

But as soon as one person works even less or more than the other, it causes resentment, and anger.

And what if theres cash that needs to be invested? Like someone needing to buy a server, or run ads, then theres a god damned meeting for all of the decisions to adjust equity.

SO Slicing Pie solves almost 99% of all of these problems.

## How does it work

Everyone earns slices for their contributions.

And everyone can vote, using their slices - starting with who is the "leader" that in in charge with rules set. For me this has always been who is the CEO or tie breaker or who put in the most risk or money.

A person's share of equity AND the profits are just their % over the growing total.

Contributions are hours spent in the business, commission earned, expenses covered -- literally anything.

Fundamentally everyone agrees that ALL contributions have both a fair market rate, and theres a multiplier.

The multiplier is always 2X for NON CASH contributions and 4X for cash expensed contributions.

For example:

A developer might have a $50/hour rate at 160-hours a month with proof of his last job or contract, and might need to cover a $100/mo app.

The developer then earns $8000 x 2 slices for their inputs of work, and $400/mo of equity for their software.

Lets say theres a few other people, that are roughtly at $50/hour as well. This puts this person roughtly in the same %.

But as it ebbs and flows, some people working less, some working more, and a big investment comes by and no one can handle it... then they find a partner willing to pay in -- an angel investor, that likes that he gets 4X equity for his dollars, instead of just $1 for $1 in a fixed model where he doesn't get to do anything, he can be a semi silent investor.

Then he gets a huge % when the expenses are spent, then over time, as everyone works, his huge % grows smaller relatively to the total as the engineers, sales team, etc pushes.

The slicing pie STOPS existing when everyones contributions can be paid back with cash... So isntead of people working for sweat, the business finally hit that $50k/month mark, where we're all able to have the business pay us, cover expenses, pay commission etc.

Then the "pie" is baked, and transfers to a traditional equity, because the equity has already stopped shifting around! The business has its own cash and cash flow.

# Protections

Sometimes there are bad actors, or people that get lazy, or ghost or harm thecompany, or a leader going crazy and trying to remove people for no reason.

There are legal protections, for the organization and the individual members.

It just goes down to was it done with good cause or no.

Slices are protected if action was justified with good cause.

An individual loses their non-cash slices if they just quit, ghost, or do great harm the company. They're still paid out from they paid in, like that developer paying a $100/mo tool. They might have cash contributions of $1000 in slices worth 1%, so they are at least entitled to 1% of payouts, but they can e paid out on cash, with interest or not to be fully bought out.

Likewise, if someone left the company on good terms or if the leader straight up removed a good partner, they keep their slices (with the non-cash slices). This way this recognizes their contribution, while the rest of the slices grow.

The goal is to get to product market fit ($1m ARR) as quickly as possible, to build something the market needs and will pay for.

# Recurring revenue factories run by its team & members

The type of businesses I like are recurring revenue companies: Skool communities, services + software, seem to go together. The top business Skools here have a transformational course in their community + a software part, to help enable that growth.

Recurring revenue is kept by having recurring value moments for the customer. If they stop showing up to the paid skool, stop using the benefits, stop getting help, e.g. stop showing up to the gym, then they'd unsubscribe.

Recurring moments are SUPER easy. What I've done is hired a single worker to DM each person that joins a community, or subscribes to a new tool on a trial, and onboard them, help the user get setup and running, and offer to guide them with a daily text or call to make sure the habit sticks. I can pay that worker $5 per onboarding and $50 per onboarding where they decide to pay, and I can offer that on slices. And most people -- ask to get paid, but then they opt in to getting it in slices so they can build with their ownership.

I often get clients and members, ASKING how they can be part of it -- and this is where I staff up, hiring people within the community -- people that already vibe with the product or mission, and if they can take it upon them to get paid with slices -- I'll take on anyone.

I see it better for the organization as a whole to pay people based on a clear definition of value, instead of salary. E.g. everyone, even engineers are paid per value created, like a new feature that allows us to charge more, etc.

If they don't produce value, and it has no cause-effect they don't get paid the big bucks. We still do hourly for when they're doing things properly.

But it works, and it works really well when everyone is vibe operating lol.

# What has this done for me

I have seen explosive growth BECAUSE of this. Instead of scaling slowly, it gives people the investment vechcile to say if everyone forgo a $1000 payout, I can reinvest it back in, and we can get 2X more clients, users, members and next time we each can expect a $2000 payout.

(This financing strategy stops when the business maxes out the capacity they have, e.g. they can't seem to double anymore because they lack something else, like staff, support)

It also creates a culture of worker-owned people that CARE to grow the business, because even the smallest individual contributor owns it. They. care to grow. The "passive organic growth" of the business is MUCH higher, because everyones iterating, and studying i ntheir spare time, and tinkering, and thinking a bout the business all the time, instead of just during the 9-5.

This video explains it well and what I share with everyone.

PROTIP: and if you want help your startup do the same, I am considering organizing a cohort of 10 people within this community that all want to build this type of organization.

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