
How much equity for a web designer? - ericb

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ericb
I have found in my last several startup attempts that I'm wasting (using) far
more time on design-related issues than I would care to. It is the one
obstacle that bars me from running full-speed with my ideas. Specifically, I
think that if you look at giving equity to a designer justify it using the
same <a href="<http://www.paulgraham.com/equity.html>">Equity Equation</a> it
looks favorable. However the equity equation lets you figure out a max, but
not what is typical.

In this particular instance, we have a working app running and the basic
design is done, but it needs fine tuning and ongoing love. In general I'm
wondering what a fair-shake would be for a partner in starting a new project.
I'm also interested in the general case, too, of a brand-new startup.

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gscott
The design can sell the product, if you find someone great at laying things
out and generally providing a look and feel that makes you want to use it then
it would be worthwhile to retain that person.

I believe that you can give equity that vests over time, so if you need to let
the designer go he/she isn't tied in too much, only gets a small amount of
equity.

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run4yourlives
How much of your success is due to his/her work?

Their position matters little.

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ericb
run4, Thanks for the feedback. While I agree with you in principle, I find
this hard to quantify. If we succeed, I will owe my success to the utility
company for providing potable water and my webhost for hosting my site. I'm
not sure, if I use the success yardstick that way, whether it really leads to
realistic compensation. It's as much about what the market will bear and going
rate for a developer in some ways. That's why I'm fishing on here for more
thoughts or norms.

~~~
run4yourlives
You're sharing value in something that can't possibly be defined yet. There is
no market rate for that, that's my point. Web Designers don't get "x" value,
because some designers might be as valuable as the founders, might actually be
the founders or might just be a contract job. You've got a scale from 0% to
100% right there.

The only thing you can really do is equate the risk/value proposition in a way
that seems fair for the amount of risk they are putting in. Are they working
without pay? Are they doing this part time? Are they making suggestions that
are helping you to decide the direction of the company? All of these are
variables that you need to weigh.

Offering a piece of your company is a not normally a form of primary employee
compensation. If you are looking at the designer as simply an employee, you'd
be better off paying them, otherwise, you should IMO, not consider your
designer as simply an employee.

Does that make more sense?

