The Mystery of Startup Compensation (via GigaOm)

Recently came across the article on GigaOM (hat tip Aaron) – this is actually the exact problem that we are looking to solve.  The conversations when nobody is making any money and after you can hire your employees are fundamentally different.  When everyone is crazy about the idea and is working on equity, divisions become relatively straightforward: it’s a mini-family.  But as soon as you pay someone,everything changes – all of a sudden you are providing immediate compensation separating people into two categories: those who profit today and those who will profit eventually.

This has been the traditional model and FairSetup builds on this specific issue.  Traditionally, ownership meant two things: strategic control and ownership of profits.  Nowadays, front-line talent most often doesn’t have interest in strategic control.  But  they do care about ownership of profits.

To this end, FairSetup allows ownership of profits (and thus ownership of the company) without strategic control.

It is good to see on GigaOm reaffirmation the problem we are solving does indeed exist.  We have secured some clients recently and will be posting cases shortly – one question that comes up constantly is “How do you define profits?”

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