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Proposition HN: I will build your MVP if you pay me $8000 + 50% equity

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Re: Proposition HN: I will build your MVP if you pay me $8000 + 50% equity

#11

Post by kenshiro_o »

z-factor wrote: post #3
dragonbonheur wrote: post #2

Bold idea. But normally it's the people with money who get to dictate the terms and decide what they should do with their money. :)

Yes, of course. Still, given all the people who make the claim that the ideas do not matter, only execution does, how many will act on that belief?

Maybe you should reduce your terms then. Say $4K for the MVP if you have to spend 1 month on it, $8K for 2 months. I believe you also stand a better chance of getting potential "investors" in if you reduce ownership to 15-25%.

This is a very interesting approach to getting rich. I think I'll try it a few years down the line, after getting more professional experience...

Re: Proposition HN: I will build your MVP if you pay me $8000 + 50% equity

#13

Post by z-factor »

kenshiro_o wrote: post #11
z-factor wrote: post #3

Earlier quoted context omitted.

Yes, of course. Still, given all the people who make the claim that the ideas do not matter, only execution does, how many will act on that belief?

Maybe you should reduce your terms then. Say $4K for the MVP if you have to spend 1 month on it, $8K for 2 months. I believe you also stand a better chance of getting potential "investors" in if you reduce ownership to 15-25%. This is a very interesting approach to getting rich. I think I'll try it a few years down the line, after getting more professional experience...

Well, the consensus is that the value of an idea is almost certainly zero, so the only way to make it worthwhile is to get one runaway success in a big pool of attempts. Everyone knows the VC version of this approach. This is how it would look like for a programmer. I'm not dead-set on these specific upfront costs and equity split, this is just the reverse of the original offer.

Re: Proposition HN: I will build your MVP if you pay me $8000 + 50% equity

#14

Post by z-factor »

onlyup wrote: post #12

Doesn't this idea fail because the person with the idea could hire someone and give away no equity? How much would an MVP usually cost?

There's value in getting it done fast and right the first time and having quality talent invested in the success. The upfront money is more of a way to guarantee that the idea person is invested in the success as well.

You could be right as well and then it's a testament to disproportionate leverage money has in our world.

Re: Proposition HN: I will build your MVP if you pay me $8000 + 50% equity

#17

Post by snaveint »

This proposition provides far less value than hmexx's.

I understand what you're saying about "execution" being more important than the idea - that is true, but execution also means follow through. Building an MVP and then ditching it to pursue "the next project" is not execution, that's just pure labor, which anyone can find for far cheaper on elance.

Re: Proposition HN: I will build your MVP if you pay me $8000 + 50% equity

#18

Post by z-factor »

snaveint wrote: post #17

This proposition provides far less value than hmexx's. I understand what you're saying about "execution" being more important than the idea - that is true, but execution also means follow through. Building an MVP and then ditching it to pursue "the next project" is not execution, that's just pure labor, which anyone can find for far cheaper on elance.

First of all the same problem exists with hmexx offer -- he can stop putting any work in and will still be the 50% equity cofounder.

Second, if the business is promising and I have a significant equity in it, of course I'll pour more work into it. I'm on the next project only while the other party does their part marketing until we evaluate in a couple months if it's working out.

And I also want to point out that my work is not something you can buy on elance at all, and most definitely not for cheap anywhere.

Re: Proposition HN: I will build your MVP if you pay me $8000 + 50% equity

#19

Post by snaveint »

z-factor wrote: post #18
snaveint wrote: post #17

This proposition provides far less value than hmexx's. I understand what you're saying about "execution" being more important than the idea - that is true, but execution also means follow through. Building an MVP and then ditching it to pursue "the next project" is not execution, that's just pure labor, which anyone can find for far cheaper on elance.

First of all the same problem exists with hmexx offer -- he can stop putting any work in and will still be the 50% equity cofounder. Second, if the business is promising and I have a significant equity in it, of course I'll pour more work into it. I'm on the next project only while the other party does their part marketing until we evaluate in a couple months if it's working out. And I also want to point out that my…

In hmexx's scenario, once the MVP is ready, the developer has received the full amount of cash which is likely the main incentive.

In your proposition, the main incentive is your coding ability.

The key difference is that in the first scenario, the cash is a measurable benefit. In your scenario, your coding ability is uncertain, it could be worth more or less than the cash you are requesting - it's hardly worth gambling 50% equity on ones self-proclaimed ability.

Re: Proposition HN: I will build your MVP if you pay me $8000 + 50% equity

#20

Post by brudgers »

z-factor wrote: post #8
jspaur wrote: post #6

Earlier quoted context omitted.

I give you 50% of my company which only owns 50% of the parent? ;) (just incase it isn't obvious....i'm not actually planning on taking this up just joking around a little)

I got that. Imagine this chain of 50% companies growing to some length. That could lead to a subprime mortgage crisis in a teapot. =)

It leads to a turtle.
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