Dev Payment $ vs Equity %
One of the most interesting parts of my daily responsibilities, is to come to an agreement with our potential client on the investment price of their project for our services. This part of the job is important to me on a personal level, because I myself have previously overpaid for tech services, I have made it the companies purpose to provide tech services at an affordable and honest rate that is mutually beneficial for our company while still being affordable for the client.
One of the questions I get asked frequently during the quoting process is, "would you be interested in doing the development of this project in exchange for equity in the idea/business?". It is a question I should be more prepared for as I have been asked this question a few times. Rather than continuing to babble all over the question when asked, I am not going to direct all prospects to this blog article and this statement when asked :) here it goes...
As a rather young and growing small business, our company is faced with a growing monthly operating expense responsibility that is required to be financially fulfilled. Not being financially compensated for project development is not something we are capable of offering at this time. We believe the client also has more of a higher level of commitment to the success of a project when they are financially invested, and we would only want to be equity partners in a company where the primary owner is motivated!