

Are start-up employee's usually consultants/contracted? - jivejones

Is it typical when being hired at a Start-up to not be a full-time employee but a monthly contracted worker?
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jperras
It depends quite a bit on what the terms are. I spent a few years doing
consulting/contracting for early to mid-stage startups, and every one of them
had slightly different terms.

Most startups in my experience, however, prefer to have full-time employees.
The opportunity cost of having an employee leave the project in the early
phases is often times devastating, and contractors/consultants are more likely
to jump ship if something more lucrative comes along. The same can be said of
"real" employees, but you're often in a better position to make a more
compelling offer (i.e. stock, options, benefits, etc.) to the latter rather
than the former.

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jivejones
in this case everyone is hired as a consultant/contract worker.

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raarky
Most of the startups I've seen try to hire core full-time employees that get
lower salaries + options.

I have seen a few rare instances where a consultant is hired but usually
startups can't afford the consultant rates hence the options

