[ Question ]

Individual profit-sharing?

byioannes_shade10d13th Feb 20198 comments


Here's a sketch of an idea:

  • Design an open-source legal agreement that two people sign.
  • The contract states that each person agrees to give the other 1% of their annual earnings, each year for X years. (Ideally X = several decades; both duration & percentage could be customized)
  • Contract is legally binding; each year both parties pay out to each other.
  • Not exclusive: a person could be in multiple contracts simultaneously (e.g. 5 contracts with 5 friends, sharing in total 5% of their annual earnings).

Two motivations for signing a contract like this:

  1. Diversify one's career & earnings risk by "investing" in admired peers.
  2. Deepen one's relationship with the other signee (signing isn't a thing to be taken lightly); signing signals intimacy & desire to build a longterm relationship with the other person.

Of course there are lots of ways something like this could go awry.

Has anyone heard of people doing something like this?

What are existing mechanisms that do something like this? Examples I've encountered already include marriage (50% profit-sharing indefinitely, at least in the US) and Kibbutzim (100% profit-sharing during one's tour of duty).