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?
Ask HN: App developers - work on projects offering equity without pay?
1–9 of 9 posts
Re: Ask HN: App developers - work on projects offering equity without pay?
#2I 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.
Re: Ask HN: App developers - work on projects offering equity without pay?
#3In 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.
Re: Ask HN: App developers - work on projects offering equity without pay?
#4I 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.
What do you think would constitute a project that's worthwhile? Maybe half cash, half equity?
Re: Ask HN: App developers - work on projects offering equity without pay?
#5Equity, 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.
Re: Ask HN: App developers - work on projects offering equity without pay?
#6When 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.
Re: Ask HN: App developers - work on projects offering equity without pay?
#7As 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.
Re: Ask HN: App developers - work on projects offering equity without pay?
#8I 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.
What do you think would constitute a project that's worthwhile? Maybe half cash, half equity?
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.
Re: Ask HN: App developers - work on projects offering equity without pay?
#9Thanks all for your input. It seems cash is the way to go...