What's the difference between partner system and equity incentive?

Partner system and equity incentive model have their own advantages, and we can't say which one has absolute benefits, because they are two models widely used in modern times, and each has its own successful cases. Therefore, as a financial planner, I think the partner system and equity incentive model should be determined according to their different business activities.

First, when funds are scarce, it is a wise choice for us to adopt the partner system, so that you can get more funds, attract more talents and strengthen the competitiveness of your enterprise.

Second, the equity incentive model, generally speaking, is that your enterprise is basically equipped, and you hope that more talents can join the enterprise, or you hope to retain talents and encourage everyone to unite. In this case, the equity incentive model is obviously the best choice.

Third, when we choose the partner system and equity incentive model, we should judge according to the direction of the enterprise. If the enterprise itself and the funds needed for future development are the key points, then you should choose the partnership system. If there is not much demand for your company's funds in five years, then the equity incentive model and retaining talents are the most critical things.

Based on the above description, we can see that the partner system and equity incentive model are suitable for different business situations, and we should make the best choice according to local conditions.