MIYAGI uses the slicing pie model for partnerships. It’s the most honest and fair approach we’ve found.
Here is how it works:
Typically in a partnership two people decided to split up the shares of the company in half where both partners own a fixed percentage of the shares ahead of time. The problem with this is that almost every time after this agreement has been solidified one person will work harder than the other and start to feel cheated by the person who is not carrying their weight.
The dynamic equity split we avoids this issue. With the dynamic equity split model shares are dynamic meaning they’re always fluctuating day to day. We do this by tying the shares of the company to the value someone puts in the company.
Value comes in the form of time you put into the company. If for example you’ve put in 2 hours of work, you would then log your time at the end and it would be converted to shares.
If you would like to know more see the video below or buy the book here.