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Seller Financing/Getting Acqui-Hired

Seller Financing/Getting Acqui-Hired

Seller Financing/Getting Acqui-Hired as a Creator

How to not get screwed becoming an exec at a Big Job.

Let’s say you want to take a job. There are a few jobs that I would actually recommend for career-long Creators to do. However, I know someone’s going to ask when does seller financing come in?

It just so happens that your ability to take a job, sell your channels (or the whole thing), coming in as a higher-up exec, and receiving equity.

Granted this might be startup focused, but at this point you should be used to that by now.

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Here’s the story:

A creator builds a successful content channel, but instead of running it forever, they want to join a startup as an executive. The startup wants the channel, but the creator also wants equity in the new company. The usual way to do this would be a straight sale, but that’s suboptimal for both sides: the creator has to exit the channel abruptly, and the startup has to front all the cash.

A better way is to structure the sale to match the creator’s equity vesting in the new company. Instead of selling 100% upfront, the creator sells off ownership gradually over time—let’s say, four years, in sync with their equity vesting schedule.

So if the channel is worth $1M, and the creator is vesting in the startup over four years, the startup buys 25% of the channel each year for $250K (or a percentage of revenue). If the creator leaves early, the deal stops. They only sell what’s already vested. If they leave after two years, they’ve sold 50% of the channel, and the rest either stays with them, gets bought out, or some other negotiated outcome.

This aligns incentives. The startup gets the channel without an upfront cash burden. The creator gets upside in both their old and new work. And instead of a hard stop where the creator suddenly disappears, the transition happens gradually.

Overview:

  • Buyer: The acquiring company (e.g., startup or media company).
  • Seller: The creator who owns the content channel.
  • Asset Being Transferred: The creator's content channel (YouTube, newsletter, etc.).
  • Payment Structure: Payments or equity allocation occur over time, in alignment with the creator’s vesting schedule in the new company.
  • Gradual Ownership Transfer: The company gains ownership of the channel in stages as the creator vests equity.

Key Components to the Deal

Phased Equity Transfer

Instead of an upfront buyout, ownership transfers gradually over 4 years (or another vesting schedule). If the creator leaves early, the remaining portion of the channel does not transfer, or the terms adjust (like a buyout option).

  • Example: If the creator is vesting equity in the new company on a 4-year schedule with a 1-year cliff, the company acquires 25% of the channel each year.

How Creators get Paid

This is very obviously not a replacement concept for a literal salary. This is in addition to a salary. The company is basically “aqui-hiring” so you get 1) paid out and 2) a salary; the concept of this structure is that it’s paced out directly with your ownership stake in the new company.

Seller financing is typically in installments:

  • Option 1: Fixed Payments Over Time – The company pays for each portion as it vests (e.g., 25% of the agreed-upon price per year).
  • Option 2: Backwards Revenue Share Agreement – Instead of fixed payments, the company buys as much as they can up front and the company pays the creator a percentage of revenue until full transfer.
  • Option 3: Blended Model – A mix of fixed payments + revenue share
    • E.g., fixed base + 20% of revenue for 3 years

Creator’s Role During Transition

  • Consulting Agreement (Optional): This is kinda meh, but can be done. The creator might stay on for a set period (e.g., 1 year) to ease the transition.
  • Clear Brand & Identity Rights. In contract, there has to be a clear understanding on whether the creator’s personal brand is tied to the channel and if there are limitations on future content creation.
    • Are you supposed to post about the company still?
    • Are you doing content in addition to your new role? Could that be a second salary?
    • If the channel is completely yours, or if you’re transferring an entire HoldCo, what is the assumption on your ability to create new channels in the future?

Vesting-Linked Clawback Terms

Ugh, this is the most lame part, but what if it doesn’t work out in the end? That should also be agreed upon, this can be set in your termination clause of your hiring contract.

  • If the creator leaves early, the deal can BUT DOESN’T HAVE TO include:
    • A buyout of untransferred ownership.
    • A reversion clause (company must return unsold portions if the creator exits too soon).
    • An adjusted payout schedule (lower payments for unfinished vesting).

As always, if you have any particular questions, feel feel to reach out to em@pre-founder.com.