Would you take equity or get paid per project?

I'm curious what people here would do in my situation...


I'm a motion designer and 3D artist, and I've been helping out a construction/renovation startup that's still in its early days.
the whole team is made up of close friends, and I honestly think the company has a good chance of becoming something much bigger in the future.


right now I'm trying to decide whether it makes more sense to get paid for the work I do or ask for a % of the company.


the projects I'd be working on are usually worth around $5k–$7k each, and there would probably be one every 2–3 months.
besides those projects, I'd also be contributing in other ways through marketing content, visual materials, branding, and generally helping the company grow.


If you were in my position, would you rather take the money and make around $10k every few months, or would you take the risk and go for equity instead?
and if you would ask for equity, what % would seem fair?
the company is still very small and just getting started, so obviously the equity could end up being worth a lot one day, or absolutely nothing.


I'd love to hear how you would think about it...

don't be naive
most startups fail
% means nothing
just get paid for your work

Kycool said:

don't be naive
most startups fail
% means nothing
just get paid for your work

Click to expand...

thank you <3 <3

You'd go with equity if you don't need funds for the rest of the year or have others gigs covering your daily expenses.

But alternatively, why not do 50/50 get paid 50% of what you'd be paid and then 50% of whatever the agreed or proposed equity is.

Most importantly please get a lawyer involved so it doesn't become something like Zuckerberg and the Winklevosses.

All the best

eerdeshi said:

You'd go with equity if you don't need funds for the rest of the year or have others gigs covering your daily expenses.

But alternatively, why not do 50/50 get paid 50% of what you'd be paid and then 50% of whatever the agreed or proposed equity is.

Most importantly please get a lawyer involved so it doesn't become something like Zuckerberg and the Winklevosses.

All the best

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ofc I have other incomes, but 10k is 10k ;d

wum by getting a lawyer involved?

If I believed in the team and company, I would try to get both, not choose one.

A reduced cash payment plus a small equity stake aligns incentives and reduces risk. Most startups fail, so taking only equity can leave you with nothing despite years of work.

Jioz Seo said:

If I believed in the team and company, I would try to get both, not choose one.

A reduced cash payment plus a small equity stake aligns incentives and reduces risk. Most startups fail, so taking only equity can leave you with nothing despite years of work.

Click to expand...

Exactly

I’d take a hybrid deal: cash for each project + small equity.

Since your work already has clear value, don’t go equity-only.

A fair range for early stage is around 1%–5% equity, depending on how involved you are in growth.

Your work already has real value and is generating revenue right now, so I'd suggest negotiating a mix of cash and equity. Take part of your compensation as payment for your work, and convert the remaining portion into equity in the company. That way best, you still get paid for the value you're creating today while keeping some upside if the company grows successfully in the future. goodluck

If I trusted the founders and the business, I wouldn’t treat it as an either-or decision.A combination of cash compensation and a smaller equity stake is usually the safer path. It gives you immediate income while still letting you benefit if the company grows. Taking only equity can be risky because many startups never reach a successful exit, which means years of work may not translate into financial return.

Ask for cash and equity.

Don't mix work with friends be upfront about your expectations and their expectations.

thanks, guysssss!!
I appreciate that u took this seriously and shared some really useful advices

the main reason I've been considering equity is that I have a lot of confidence in the person leading the company.
he's already built successful businesses before, which is what made me think about taking a % in the first place.

that said, I completely agree with everyone here that taking only equity is still risky!
just because the CEO has succeeded in other ventures doesn't guarantee that this one will work out the same way. nothing is ever certain...

so at this point, I think the safest option would be a hybrid approach.
for example, if I were offered 20% of the company, I'd be willing to take 10–15% instead and continue getting paid per project as well)
that feels like the most balanced and realistic solution to me.

tx again to everyone who took the time to share their thoughts!!

Zack177 said:

thanks, guysssss!!
I appreciate that u took this seriously and shared some really useful advices

the main reason I've been considering equity is that I have a lot of confidence in the person leading the company.
he's already built successful businesses before, which is what made me think about taking a % in the first place.

that said, I completely agree with everyone here that taking only equity is still risky!
just because the CEO has succeeded in other ventures doesn't guarantee that this one will work out the same way. nothing is ever certain...

so at this point, I think the safest option would be a hybrid approach.
for example, if I were offered 20% of the company, I'd be willing to take 10–15% instead and continue getting paid per project as well)
that feels like the most balanced and realistic solution to me.

tx again to everyone who took the time to share their thoughts!!

Click to expand...

I think that's a sensible approach. You get paid for the work you're doing today and still keep some exposure to the company's future growth. Best of both worlds if the terms are fair.