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Is equity the only way to incentivise contributors in the absence of salary?

3 pointsby ybalkindabout 3 years ago
Firstly, I&#x27;m not from the startup world, have never been in one, and dont know all the standard models, so forgive me if this sounds naive.<p>But I&#x27;m working on a startup idea. I&#x27;m looking to bring on some contributors to help with content and business development and I can&#x27;t pay unless I get funded which I&#x27;m hoping to avoid for now. Offering equity feels like overkill for the type of work. I&#x27;m basically looking to get some freelance contributors to work on a risk basis, but with an overly generous upside if the business works.<p>I&#x27;m envisioning something like a revenue share type agreement.<p>Needless to say the contributors would have to strongly believe in the idea in order to take this risk. But if we could put that aside for a moment, I&#x27;m asking if there are existing models in the ballpark of what I am describing so that I don&#x27;t have to try and reinvent the wheel.

4 comments

IAmEveryoneabout 3 years ago
You could try adding an elaborate backstory and run it as a cult.<p>Traditionally, violence was also useful to get people to work for free. If you’re really good, the first round of violence makes the mere threat of it effective for subsequent rounds &#x2F; business projects.<p>Maybe say you’re hiring and make the work an “example project”. If it’s too much for a single applicant (more than a week), have a “operations management” applicant divide it into suitable sub-packages.<p>Child labor is illegal almost everywhere, so the only way they can be made to work is without pay.<p>Interns are great not just in the Oval Office.
carlbarrdahlabout 3 years ago
A crypto approach could look like:<p>1. Create a token and mint 1% (10k) of them to you<p>2. Create a pair with let&#x27;s say 1 ETH (or USDC) + 10k on Uniswap - this is your initial funding for your project. You now have a market for your token.<p>3. Reward your contributors with tokens - they can choose to swap these into ETH or USDC if they wish to
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ubermanabout 3 years ago
It is certainly possible to create a class that has rev sharing without voting. I believe the Chanzukerburgs has such and arrangement.
formerkrogempabout 3 years ago
Equity is just delayed salary. It&#x27;s all money in the end. The voting power if any amounts to nothing.
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