Partnership in a paid ads operation: equity split, vesting, exits, and the mistakes that ruin friendships
Danilo Silveira · 2026-10-07
Split by role
Clearly defining each partner’s role is essential to avoid conflicts. Decide who will be responsible for each area: paid ads management, content creation, customer support, among others. A practical model is to split things into 3 main areas:
- Paid Ads Management: focuses on campaigns and optimization.
- Content Creation: responsible for ads and posts.
- Customer Support: handles support and feedback.
With this split, everyone knows their role and avoids overlapping responsibilities.
Vesting
Vesting is a strategy that ensures partners earn their equity over time, contingent on staying with the company. A common model is 4-year vesting with a 1-year cliff. This means:
- After 1 year, the partner receives 25% of their equity.
- Each month after that, they receive a portion of the remainder until the 4-year mark.
This mechanism helps keep partners committed and reduces the risk of someone leaving right at the beginning.
Exit clause
An exit clause should be clearly defined in the agreement. If a partner decides to leave the partnership, how will the exit work? Consider:
- Company valuation: define how the business will be valued to buy out the partner’s equity.
- Timeline: set a timeframe for the exit.
- Conditions: whether the exit is voluntary or forced, and how the process will work.
This prevents disagreements and makes sure everyone knows what to expect.
WHOSE NAME IS THE ACCOUNT UNDER?
Decide whose name the bank accounts and ad accounts will be under. A common practice is to have a corporate account in the company’s name, but one partner may manage the accounts. Ideally, all partners should have access and visibility to avoid distrust.
Written agreement
Last but not least, a written agreement is essential. It should include:
- The split of roles and responsibilities.
- Vesting rules and the exit clause.
- Transparency around the accounts.
A formal document prevents misunderstandings and serves as a reference in case of disputes.
Conclusion
A well-structured partnership can be the foundation of a successful business, but you need to get the details right so you don’t ruin the friendship. What have you put in place in your operation? What equity split percentages do you use?