Bringing my developer in house full time will provide a small short term lift in revenue with increasing value as the company grows and scales to multiple web properties. He isn't interested in salary as much as equity. My 50/50 business partner and I on the other hand are not interested in giving away equity. We are open to profit sharing, or any other creative solution that will continue to motivate and incentivize him for the long term without having to give up a % of our company. Any feedback greatly helps - thanks!
If you have the flexibility to structure his incentive plan based on what motivates him, I think this is best for the growth of your company. Perhaps, equity based on meeting specific targets first. Agree, that a good developer is worth it, and if it increases the size of the total pie...may be worth considering.