Comments on: Friday Q&A: How to Compensate Startup Advisors

By: John Dubock

John Dubock — Fri, 28 Oct 2016 17:28:25 +0000

With experienced freelancers out there to do the hard yards of setting up the foundation of great software I think you have a willing set of people who know what it takes for a startup to ‘just get started’. CRM setup, Live Chat, scheduling and a smart email program are not hard if you’ve done it, but frequently overlooked or added without thought to what really works, doesn’t break the bank. Nothing is free, and its exciting to see so many new ideas out there. Downside is I see many great ideas with no thought to what the customer is asking for, more ‘we have features and benefits” so just buy our product and we’ll figure out the future!” Today’s customer wants answers, not self serve support, not developers hiding, Transparency wins customers.

By: Pete Spenuzza

Pete Spenuzza — Fri, 28 Oct 2016 17:08:34 +0000

Struggling with this right now! As of now, we have two advisors with a lot of experience in our industry. They are currently helping out for free, but it’s clear they are adding a lot of value. It’s more a feeling of guilt – as if I need to have a formal relationship in order to keep extracting value from them. I’m thinking 0.25 – 0.5%?

By: James McBryan

James McBryan — Fri, 28 Oct 2016 16:14:36 +0000

Most people I meet who I want to be advisers actually end up being coaches, who charge hundreds of dollars per hour. I guess my companies are never lucrative enough to deal in equity since they are in the nonprofit sector.

However, I actually did find paid coaching very helpful. It took me years to not only find the right coach but for the right time when paying the coach would not only pay itself off but potentially many times over that. Honestly if it wasn’t the right person or the right time, I most absolutely would’ve had buyers remorse.

I believe there’s an art in working with coaches. I find so many people who do coaching and don’t get much out of it and it just drags on both sides. I’m still figuring it out, but my current arrangement for coaching is 3 hour deep dives per 5 weeks and 1-2 email check-ins in between. I work with the coach on topics I know will drive the bottom line, and especially drive it better than I could’ve done myself. For example, market size analysis, pricing, revenue generating prioritization, funnel analysis, and large client contract feedback. So far it’s worked me!