Hi Gabriel, Use a sliding scale weighted towards pay in the present and towards equity in the future. Get the agreement in writing.
A bit more detail: It's a new venture, so you want to realize some short-term value now and as you progress. Getting paid today means that if they have to close the doors on short notice, you've used your time wisely. After all, you could be doing something else with your time that has pay and benefits. If the company, its revenues, and your role develop as time goes on, then your remuneration would shift to some pay plus some equity. Use milestones as clear markers for when and how to shift. Milestones could be revenues, amount of time in operations, or client portfolio, or a combination. For example, you get 100% pay until they reach $1M quarterly revenue, and then it shifts to 75% pay 25% equity. (You should work out the dollar value of that equity so you know it's 25% of your total. This could mean you stay at the same pay amount and add equity on top.) Or, if you bring on new business, then your equity is balanced to how much that new business increases the overall portfolio. This way, at any end point, you'll have been paid and friends can stay friends. In the distant future, your remuneration could shift to something like 10% pay and 90% equity, which should reflect your role maturing to something more like a managing partner than a billable resource. It worries me to see something like, "i work for them now for pay, but we're talking about me getting equity." Really? What's your confidence level? Get it in writing. Better, put it in writing and take it to them. When it requires action on their part, you'll start to see their intentions and they will see yours. (it's just like any other client - you only have a deal when the contract is signed.) I hope this helps. -Jay On Tue, Jun 24, 2008 at 8:16 PM, Gabriel Friedman < [EMAIL PROTECTED]> wrote: > Hi - > > Sorry for the slightly off-topic posting, but the quality of this list > makes it my first choice; and I expect some of you have experience with this > question. > > I may have a chance to work for a small (3-person) startup. They have seed > capital, a good idea, a wireframe, and are now looking to design a working > prototype. My role would be designer/UI/UX guy. > > I'm impressed with the team and the idea, and would like to negotiate for > equity rather than pay (it's a freelance position). I'm not sure where to > start, or how to value my contribution. > > Any thoughts on how to approach this question? > > Thanks, > Gabe Friedman > > ________________________________________________________________ > Welcome to the Interaction Design Association (IxDA)! > To post to this list ....... [EMAIL PROTECTED] > Unsubscribe ................ http://www.ixda.org/unsubscribe > List Guidelines ............ http://www.ixda.org/guidelines > List Help .................. http://www.ixda.org/help > -- Jay A. Morgan Information Architecture & Scenario-based design. Design Patterns & Mental Models. ________________________________________________________________ Welcome to the Interaction Design Association (IxDA)! To post to this list ....... [EMAIL PROTECTED] Unsubscribe ................ http://www.ixda.org/unsubscribe List Guidelines ............ http://www.ixda.org/guidelines List Help .................. http://www.ixda.org/help
