

Ask HN: App developers - work on projects offering equity without pay? - dynabros

I'm always asked to develop apps for equity - no pay. Has anyone taken this route before? Did you find it was worthwhile? What was your experience?
======
manuscreationis
Equity, no matter how it is structured or offered to you, is a gamble.

Always get cash, and take equity if it's offered (so long as there aren't any
strings attached).

Cash will pay your bills today

Lotto tickets may never pay you a dime, and can be a drain on you emotionally
if you're constantly expecting one to pay off.

------
anthonyc
When I ran a client facing company I never worked for equity. Working for
equity is the same as working for free. It will take valuable time away from
your money making projects and your personal "free time" projects.

Money is money. Equity is not.

Edit: I assume you're in business or moonlighting for profit.

------
redspark
I don't and won't. If the other person doesn't have the hustle to at least
come up with a little money, there is a good chance the project is doomed.

~~~
dynabros
What do you think would constitute a project that's worthwhile? Maybe half
cash, half equity?

~~~
redspark
I think it would very much depend on the project, the industry, and
contribution breakdown. There are too many variables to give a blanket answer.

------
soneill
As a business owner, if someone is offering you equity and no cash for an app,
then they don't believe enough in their business and neither should you.

------
dynabros
Thanks all for your input. It seems cash is the way to go...

------
PythonDeveloper
In my experience, this is rarely worthwhile as 99% of startups don't even get
funded, and without an anti-dilution guarantee (which requires an irrevocable
modification to the by-laws of the company, and is STILL not a guarantee),
you're unlikely to see anything from the venture.

What I would suggest is convertible equity. Take the stock, but get in writing
that if the stock isn't worth X by date Y, you have the right (but not the
duty) to convert it to debt, payable upon presentation, with a 1.5% per month
interest rate if not paid immediately.

You're still unlikely to see a dime, but at least you can sell the debt to a
collection company if things get bad.

