Individual asking for CEO role for feedback and some connects
I was building a project in side for 2 years now and it was always free to use, had almost 300 users in the early days, the 2 years were mostly spent finding the product market fit pivots after pivots, in last 4-5 months the product is ready for PMF and I got a reach out from acquaintance that he would want to join efforts, I am technically strong in implementation and execution and have a full time demanding job, he works as freelancer.
In 2 months on and off weekend (Saturday) we shared feedbacks on zoom calls and he promised to bring 3-4 clients (not high value, individual user sign up ) and 1 enterprise (SME), these are all driven by his previous freelancing commits and also he has not shared projected revenue from these. We reached to a point where he is demanding that he can only onboard or take to call with SME after we formalise our relationship, fair ask.
I could see some skill gaps in him but I gave him offer for 30/70, 30% revenue from his closed deal after 3 month retention (no other condition) and 20% equity vested over 4 years with first year cliff at $100k ARR revenue driven by him. I even asked him if he has a number in mind for % to start a conversation, but he got defensive that I only do this in side with a job and he will be doing it full time totally ignoring the fact that he reached out when PMF was found and product is built and 6-7 1 hour call of UI tweaks doesn’t amount to anything and there is no proof of sale/ deal and all of it is signal which I can’t verify, he is pushing back he doesn’t want to own sales target and wants a CEO role, I asked him to be CPO and in his remarks “he certainly wants more than 20% in his words”, without putting a number. In some of early conversation he said 50:50 split.
Honestly after being in industry my honest observation of his skill is towards customer research that he can talk to customer for feedback / research and do market research. The most complementary skill that I will need is of revOps but he doesn’t understand these terms either.
My belief is any relationship ends how it starts, there are few other red flags as well he doesn’t understand the gravity of such product I can’t imagine him building a sales pipeline he simply lacks the experience for it and hinging on previous know contacts which is not scalable. I was thinking of countering it with % revision to certain x if $50k ARR is achieved in 6 months.
What do you think?