Looking for Programmer / Offer Equity-Share
A friend of mine and I have several, very interesting, web-related business ideas in mind. Two of them ought to be realized by the end of this year. The first project should be launched by the end of July. I recently graduated from Business School and have a background in finance.
The first project comprises two independent websites that are more-less based on the same idea. The only difference is that we are going to face two different target groups.
For obvious reasons it is always better to have a tech partner when founding an internet start-up. In our case, the programmerwho should be able to (i) develop the website himself and (ii) outsource and monitor time-consuming tech-related parts.
Additionally, we want to realize further projects in the long term. Therefore, we are looking for a person who is not only a intelligent and ambitious programmer, but also a person with leadership skills who is willing to take on responsibilty, and able to pull together a team of programmers (in the long-term) and monitor tasks to enhance productivity.
The first project:
- A website with similar complexity would be surveymoney.com. We don't want to clone this site, but content-wise and in terms of its database structure the website will be quite similar
- We offer an Equityshare of 20-30%
- Until the website developed is completed, we offer you a negotiable salary
- Completed degree (B.Sc or higher in Comp. Science) or senior
- good track record
If you're interested, please, send me a PM with your resume and past projects. Additionally, you may provide your skype-id so that we can have a chat and get to know each other more easily.
Just to clarify-- you will be paying for the web development in cash upon completion of website? And also offering equity in your company?
Out of curiosity, why would you offer any equity if you're paying for the development?
A rather small amount, but yes. The are many reasons why I would do this:
1) It incentivizes the programmer to focus more on the actual projects (I don't want a programmer who has several other projects and just works for this project 2hours a day)
2) I want to demonstrate that this is a serious project. Obviously, it needs time until one can trust each other.
Yet, how does a developer know that I don't have other independent programmers developing exactly the same website and from those I just choose the best one? Paying a developer a certain amount of money decresaes this risks and facilitates the progress of building up trust.
There might be ppl who disagree with me but this is the way I see it.
There's really only one way to demonstrate the seriousness of the project, and that is to hire a web developer and pay him/her for work done. Those are the only projects I ever take seriously-- projects promising a portion of the "profits" after the website is finished and has gone live are the opposite of serious. Promises of equity in the company/website are just about as bad, because there is rarely any kind of serious valuation done on the company (because most would valuate to zero and 50% of zero is, you guessed it, zero).
Sorry to be so cynical, but I have read literally hundreds of proposals on this forum that promise equity or profit sharing and I'm sure less than 1% of them have ever paid out anything.
If your start-up is short on cash flow, you should get an angel investor (or a panel of them) on board. That, of course, requires a lot of work to build a solid business plan, one that shows exactly how the website is going to generate money. But with an investor on board, you'll then have the cash flow it takes to get things started in the right way. A business plan will also expose weaknesses in your strategy, and in some cases can convince the entrepreneur the idea isn't going to make any money, and a lot of wasted time and effort can be averted.
Put another way, you are going to have a very difficult time finding a competent web developer who wants to be your business partner. Web developers want to develop websites, they don't want to be business partners. Think of it this way: Would a retail shop ever think to offer a share of equity to their property management company in lieu of rent? You should regard the creation of your website as just another asset of your company that requires an investment in.
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