How Marketing for Equity Partnerships Work

Most marketing agencies charge monthly retainers. We take equity instead.

When I charge monthly fees:

❌ When I charge monthly fees: ❌ I'm optimised for billable hours ❌ Your marketing is an expense line item ❌ Short-term tactics over long-term strategy ❌ No real skin in the game

When I take equity:

✅ I'm optimised for your business valuation ✅ Marketing becomes an investment in growth ✅ Long-term value creation is the focus ✅ True partnership with aligned incentives

How Much Equity?

Stage of Business:

Pre-revenue startups: 4-10% equity Early revenue (£20K-500K): 3-8% equity Established business (£500K+): 2-5% equity

Scope of Partnership

Marketing only: Lower percentage Marketing + strategic advisory: Higher percentage Full-time strategic CMO role: Highest percentage

Timeline Commitment

12-18 months: Standard equity percentage 24+ months: Potential for reduced percentage Shorter timeline: Higher percentage required

Market Opportunity

Large addressable market: Lower percentage Niche market: Higher percentage International expansion potential: Adjusted accordingly

Legal Documentation

Professional Setup:

• Work with experienced startup solicitors • Proper equity agreements with standard protections • Clear milestones and expectations • Standard anti-dilution and tag-along rights • Clean exit provisions for both parties

What's Included:

✅ Equity grant agreement with vesting schedule ✅ Advisory agreement outlining scope and expectations ✅ Non-disclosure and non-compete provisions ✅ Intellectual property assignment clauses ✅ Dispute resolution and termination procedures

ROI Comparison: Equity vs Cash

Traditional Agency (36 months):

£15K/month × 36 months = £540,000 cash

Equity Partnership (36 months):

3% equity × Business valuation at exit

Example Scenarios:

• Business sells for £5M: 3% = £150,000 (72% savings)

• Business sells for £15M: 3% = £450,000 (17% savings)

• Business sells for £25M: 3% = £750,000 (+39% vs cash)

• Business IPOs at £100M: 3% = £3,000,000 (+456% vs cash)

Why This Model Works Better

For Your Business:

✅ Preserve cash flow for operations and growth ✅ Access world-class marketing without upfront investment ✅ Partner who's truly invested in your long-term success ✅ Strategic guidance beyond just marketing execution ✅ Network access and industry connections

For Me:

✅ Aligned incentives with your business success ✅ Meaningful equity in businesses I believe in ✅ Long-term value creation vs short-term fees ✅ Selective partnerships with exceptional founders ✅ Portfolio diversification across industries and stages

Common Questions

A: Entrepreneurship involves risk. If I'm willing to bet my time and expertise on your success, it demonstrates confidence in your vision and execution ability.

A: We use standard valuation methods based on revenue multiples, comparable transactions, and growth projections. Always conservative and fair.

A: Equity agreements can include buyback provisions at fair market value, typically after achieving certain milestones.

A: Vesting schedules protect both parties. Unvested equity returns to the company. Vested equity remains with clear ownership.

How Equity Partnerships Work