Comments on: Part II: Equity vs. Cash http://www.sitepoint.com/blogs/2005/01/08/part-ii-equity-vs-cash/ News, opinion, and fresh thinking for web developers and designers. The official podcast of sitepoint.com. Mon, 23 Nov 2009 05:10:48 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: peach http://www.sitepoint.com/blogs/2005/01/08/part-ii-equity-vs-cash/comment-page-1/#comment-6549 peach Tue, 30 Nov 1999 00:00:00 +0000 1592976006#comment-6549 <p>Its an interesting concept. Webdesigners these days are amongst the first people that start-ups engage. Taking equity would be a good way to take advantage of this.</p> Its an interesting concept. Webdesigners these days are amongst the first people that start-ups engage. Taking equity would be a good way to take advantage of this.

]]> By: jon http://www.sitepoint.com/blogs/2005/01/08/part-ii-equity-vs-cash/comment-page-1/#comment-6550 jon Tue, 30 Nov 1999 00:00:00 +0000 1592976006#comment-6550 <p>im in a situation now where the client has engaged me in a startup project at about 1/3 my normal rate. there have been other factors that contributed to my accepting half my rate, but those factors have started to diminish. </p> <p>i recently informed him that my rate would be increasing, and he replied with a message about passion and taking a risk and the project soon being very profitable - and promises of sharing in that profit. is there any acceptable way to demand a contractual share in that phantom profit, or to somehow insure that i will receive a share if/when his project becomes profitable? i can see myself being involved and getting the shaft once the $ rolls in. also, what type of insurance can be made for "performance-based" equity? like everyone, i just want mine. thanks.</p> im in a situation now where the client has engaged me in a startup project at about 1/3 my normal rate. there have been other factors that contributed to my accepting half my rate, but those factors have started to diminish.

i recently informed him that my rate would be increasing, and he replied with a message about passion and taking a risk and the project soon being very profitable – and promises of sharing in that profit. is there any acceptable way to demand a contractual share in that phantom profit, or to somehow insure that i will receive a share if/when his project becomes profitable? i can see myself being involved and getting the shaft once the $ rolls in. also, what type of insurance can be made for “performance-based” equity? like everyone, i just want mine. thanks.

]]> By: Olila http://www.sitepoint.com/blogs/2005/01/08/part-ii-equity-vs-cash/comment-page-1/#comment-6551 Olila Tue, 30 Nov 1999 00:00:00 +0000 1592976006#comment-6551 <p>The business owner of the startup company seems to be a poor business man/woman.</p> <p>1. I don't think a web-bureau is the best bank to lend money from. The business owner should use a regular bank. Or you could make an arrangement with your own bank so they supply the cash for your customer - That's normally only possible with bigger projects. The benefits are, you get the cash up front and can focus on your core business.<br /> </p> The business owner of the startup company seems to be a poor business man/woman.

1. I don’t think a web-bureau is the best bank to lend money from. The business owner should use a regular bank. Or you could make an arrangement with your own bank so they supply the cash for your customer – That’s normally only possible with bigger projects. The benefits are, you get the cash up front and can focus on your core business.

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