Proposition HN: I will pay $8000 for you to build your side-project/MVP

#1

Post by JaneLovesDotNet » Thu, Jan 10, 2013, 4:13 PM UTC

Premise 1:

Investors/Incubators over-estimate their ability to pick good ideas/startups.

Premise 2:

An MVP built by a lone, but talented techie is almost as likely to turn into something 'successful' as a startup on angellist that has: 4 founders, 9 advisors, 13 press releases, 600 followers, etc

Premise 3:

Most freelancers will not build and/or follow-through with their ideas, because they perceive their opportunity cost to be too high.

Premise 4:

HackerNews has a decent number of talented freelancers with good ideas.

Based on these premises, I present The Proposition [Version 1.0]:

I'll pay you $5000 to build the MVP of that idea you've been kicking around in your head for the last year. Once you're done (ideally within 2 months), you can go back to earning your full potential. At this point, I'll take over and spend an additional $3000 to acquire enough users/customers for us to evaluate the project's likelihood of success. We split the resulting company 50-50, as equal co-founders.

Re: Proposition HN: I will pay $8000 for you to build your side-project/MVP

#2

Post by JaneLovesDotNet » Thu, Jan 10, 2013, 4:13 PM UTC

Pre-emptive FAQ:

Isn't this a horrible deal? Incubators typically inject more money for far less equity! I earn $10K a month, I could easily save up $8K in a few months, and do this myself for 100% equity.

True. If you can get into YCombinator, for example , you should obviously go for it. I can't compete with that. If you're earning $150K+, or you've already been working on your side-project for a year, this may not be for you. On the other hand, if you're just getting started and you need a little push, both financially and emotionally, this could be right up your alley.

Who the hell are you? Why would I work with you?

I'm also a techie. Have had one moderately successful venture so far, which has given me a comfortable life (but not quite retirement amount). I want to reduce my coding time and instead help people get their ideas to market using my resources. Hopefully we can build a few success stories along the way. You can find out more during our first Skype chat!

Will you fund everyone and every thing?

No. I'll still need to like your idea, and feel that a positive long-term return is possible. But my belief in Premise 1, combined with the favorable structure of the proposition, means I don't need to be that picky. I'll also need you to commit to working on the MVP full-time until it's done. Evenings + Weekend work is something this structure is actively aiming to avoid. Sign up, ship it, then go back to earning a steady income.

Re: Proposition HN: I will pay $8000 for you to build your side-project/MVP

#3

Post by hmexx » Thu, Jan 10, 2013, 4:14 PM UTC

JaneLovesDotNet wrote: post #2

Pre-emptive FAQ: Isn't this a horrible deal? Incubators typically inject more money for far less equity! I earn $10K a month, I could easily save up $8K in a few months, and do this myself for 100% equity. True. If you can get into YCombinator, for example , you should obviously go for it. I can't compete with that. If you're earning $150K+, or you've already been working on your side-project for a year, this may not…

If interested, drop me a line at hnproject2013@gmail.com

If you have questions or HN-style critic on the structure/proposition, write below and help me build proposition version 1.1!

Re: Proposition HN: I will pay $8000 for you to build your side-project/MVP

#4

Post by fluorid » Thu, Jan 10, 2013, 4:19 PM UTC

Great proposal. I just upvoted it. Don't know if the typical freelancer dev will jump on it and has enough will power but I totally agree on premise 1,2 and 3, so true. Great post!

Re: Proposition HN: I will pay $8000 for you to build your side-project/MVP

#5

Post by shawndumas » Thu, Jan 10, 2013, 4:19 PM UTC

Why should someone do this instead of a KickStarter?

Re: Proposition HN: I will pay $8000 for you to build your side-project/MVP

#6

Post by tarr11 » Thu, Jan 10, 2013, 4:22 PM UTC

I can't seem to see any biography about you on your HN profile or this post.

Are you planning on doing this anonymously?

Re: Proposition HN: I will pay $8000 for you to build your side-project/MVP

#7

Post by traxtech » Thu, Jan 10, 2013, 4:22 PM UTC

hmexx wrote: post #3

JaneLovesDotNet wrote: post #2

Pre-emptive FAQ: Isn't this a horrible deal? Incubators typically inject more money for far less equity! I earn $10K a month, I could easily save up $8K in a few months, and do this myself for 100% equity. True. If you can get into YCombinator, for example , you should obviously go for it. I can't compete with that. If you're earning $150K+, or you've already been working on your side-project for a year, this may not…

If interested, drop me a line at hnproject2013@gmail.com If you have questions or HN-style critic on the structure/proposition, write below and help me build proposition version 1.1!

US resident only / Europe / rest of the world ? Payment terms ? (upfront / milestones / finished) Future company as a delaware C/S-corp ?

Re: Proposition HN: I will pay $8000 for you to build your side-project/MVP

#8

Post by rohamg » Thu, Jan 10, 2013, 4:30 PM UTC

Cool proposition but because of your onerous terms you are self selecting for bottom barrel. In startups (where there is a power law distribution of outcomes) it would be much preferable to offer more generous terms and simply be more picky selecting for founder competence. Also- need to figure out statute of limitations: who decides when one MVP stops and another begins? What if a freelancer takes your money hacks up a bunch of MVPs and learns enough to do the full swing by themselves?

Re: Proposition HN: I will pay $8000 for you to build your side-project/MVP

#9

Post by hmexx » Thu, Jan 10, 2013, 4:31 PM UTC

traxtech wrote: post #7

hmexx wrote: post #3

Earlier quoted context omitted.

If interested, drop me a line at hnproject2013@gmail.com If you have questions or HN-style critic on the structure/proposition, write below and help me build proposition version 1.1!

US resident only / Europe / rest of the world ? Payment terms ? (upfront / milestones / finished) Future company as a delaware C/S-corp ?

Still need to iron out the details but...

World.

Upfront will be small (possibly nil) to prevent time-wasters. We can agree milestones based on nature of project. Once code is flowing onto a shared repository for a couple days, I'll feel comfortable starting the money drip.

C/S corp in Delaware sounds reasonable. A yet to be drafted, founder's agreement to be signed at project start also to protect both parties.

Re: Proposition HN: I will pay $8000 for you to build your side-project/MVP

#10

Post by nkohari » Thu, Jan 10, 2013, 4:33 PM UTC

Wow. I'd rather go on fucking Shark Tank.

If someone is willing to take $5,000 to do the heavy lifting up front (therein taking most of the risk) for only 50% equity, their idea is either terrible or they aren't committed to seeing it through.