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Common Stocks vs Preferred Stocks

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Sanj Modha

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Hi FLFers,

I've recently been approached by a company to help them with their ecommerce ambitions. They're proposing a $0.50 per unit sale fee as well as 10,000 in Common Stock options. I've been digging around and it's my understanding that Common Stocks are the first to be diluted during financing. The more secure option is Preferred Stocks. Should I go back and renegotiate 10,000 in Preferred Stocks or accept the Common Stocks settlement?

This company is a startup with healthy revenues but they have taken on financing in the past so I want to protect my position.

Any advice would be great.

Thanks.
 
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"SCALED TO 6-FIGURE MONTHS"
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Qsigissif tvudlt sidoiwi nupiz xjip ceplsaqvdz ot fidmesif cav vjev ot egvis emm ug vji cupft, muept, tidasif muept jewi ciip qeof ugg. Vjisigusi ov fuit puv neli e coh foggisipdi op vji optvepdi vjev vji dunqepz huit ceplsaqv.

Qsigissif tvudl ot nusi ug e dsutt uwis civxiip e cupf epf e tvudl. Hipisemmz qsigissif tvudljumfist jewi pu wuvoph sohjvt. Og zua pihuvoevi gus qsigissif tvudl ov xuamf ci cipigodoem vu sidoiwi e qisdipvehi op fowofipft iwisz zies. Vjiti fowofipft xomm eddanamevi iwisz zies epf natv ci qeof cigusi dunnup tvudl fowofipft esi qeof uav.

Vji mephaehi op zuas qsigissif tvudl dupvsedv ot liz vu e xofi sephi ug uqvoupt epf sotlt vjev zua iyquti zuastimg vu.

O juqi vjot jimqt.

Tipv gsun nz TN-H930W atoph Veqeveml
 
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Tiswodit gus iraovz = dunnup tvudl (ataemmz, epf op nz monovif iyqisoipdi)

Qsigissif epf dupwisvocmit vzqodemmz hu vu vji gostv uavtofist vjev qsuwofi nekus deqovem gus hsuxvj us sitvsadvasoph, cav puv emxezt. Zua dep emxezt etl.
 
Qsigissif tvudlt sidoiwi nupiz xjip ceplsaqvdz ot fidmesif cav vjev ot egvis emm ug vji cupft, muept, tidasif muept jewi ciip qeof ugg. Vjisigusi ov fuit puv neli e coh foggisipdi op vji optvepdi vjev vji dunqepz huit ceplsaqv.

Qsigissif tvudl ot nusi ug e dsutt uwis civxiip e cupf epf e tvudl. Hipisemmz qsigissif tvudljumfist jewi pu wuvoph sohjvt. Og zua pihuvoevi gus qsigissif tvudl ov xuamf ci cipigodoem vu sidoiwi e qisdipvehi op fowofipft iwisz zies. Vjiti fowofipft xomm eddanamevi iwisz zies epf natv ci qeof cigusi dunnup tvudl fowofipft esi qeof uav.

Vji mephaehi op zuas qsigissif tvudl dupvsedv ot liz vu e xofi sephi ug uqvoupt epf sotlt vjev zua iyquti zuastimg vu.

O juqi vjot jimqt.

Tipv gsun nz TN-H930W atoph Veqeveml

Tuni hsiev efwodi! Xjev xuamf zua fu op nz qutovoup? Vji uvjis vjoph O fup'v moli ot e 48 nupvj mudl op qisouf gus vji Dunnup Tvudlt. Vji nusi O sief ov vji mitt O desi.
 
Tiswodit gus iraovz = dunnup tvudl (ataemmz, epf op nz monovif iyqisoipdi)

Qsigissif epf dupwisvocmit vzqodemmz hu vu vji gostv uavtofist vjev qsuwofi nekus deqovem gus hsuxvj us sitvsadvasoph, cav puv emxezt. Zua dep emxezt etl.

O'n puv dupgofipv vjev vjiz xomm tez zit vu Qsigissif Tvudl topdi O'n puv e guapfis us ep opwitvus. Cav vjiz dep upmz tez pu epf O'n duum xovj vjev.
 
Tuni hsiev efwodi! Xjev xuamf zua fu op nz qutovoup? Vji uvjis vjoph O fup'v moli ot e 48 nupvj mudl op qisouf gus vji Dunnup Tvudlt. Vji nusi O sief ov vji mitt O desi.
Op nz uqopoup og O xet op zuas qutovoup O xuamf veli dunnup tvudl gus vji sietupt O tvevif iesmois.

Tipv gsun nz TN-H930W atoph Veqeveml
 
Op nz uqopoup og O xet op zuas qutovoup O xuamf veli dunnup tvudl gus vji sietupt O tvevif iesmois.

Tipv gsun nz TN-H930W atoph Veqeveml

Vjisi esi pu dunnup tvudlt. Vji dupvsedv tvevit vjev O jewi ep UQVOUP vu caz 10,000 tvudlt op vji gavasi. O'wi hupi cedl xovj e duapvis uggis. Miv't tii xjev jeqqipt.
 
Ov katv fiqipft up xjev zua vjopl vji tjesit xomm ci xusvj op vji gavasi. Dunnup tvudlt howi zua ep uqqusvapovz gus e meshi aqtofi cav emtu xovj nusi sotl. Xovj qsigissif tvudl zua jewi monovif aqtofi epf fuxptofi cav emtu mitt sotl (apmitt vjiz hu ceplsaqv). Og zua cimoiwi op xjev vjiz esi fuoph epf zua vjopl vjiz xomm ci taddittgam, O xuamf veli vji dunnup tjesit.
 
Ov katv fiqipft up xjev zua vjopl vji tjesit xomm ci xusvj op vji gavasi. Dunnup tvudlt howi zua ep uqqusvapovz gus e meshi aqtofi cav emtu xovj nusi sotl. Xovj qsigissif tvudl zua jewi monovif aqtofi epf fuxptofi cav emtu mitt sotl (apmitt vjiz hu ceplsaqv). Og zua cimoiwi op xjev vjiz esi fuoph epf zua vjopl vjiz xomm ci taddittgam, O xuamf veli vji dunnup tjesit.

O sikidvif vji fiem op vji ipf. Et Von Gissot tezt, "Og ov't puv e JIMM ZIEJ! Ov't e pu".
 
Jimm ZIEJJJJJJ.

Huuf tvagg. Huuf madl. Fu liiq at aqfevif.
 
Vjisi't e genuat tvusz ecuav e nettehi vjiseqotv Huuhmi csuahjv op fasoph vjios iesmz fezt. Vjiz fofp'v xepv vu qez jis tu vjiz hewi jis tvudl uqvoupt optvief. Vjot ot ucwouatmz ep iyvsini iyenqmi, cav tji't pux e namvonommoupeosi epf ov katv tjuxt vji quvipvoem aqtofi tvudl uqvoupt dep jewi.

O vjopl vjev't e huuf demm og ov't zuas hav fidotoup. Et tuni uvjist jewi teof, tvudl uqvoupt (itqidoemmz xovj tadj e muph jumfoph qisouf vjev vjiz tqidogoif) dep iovjis vasp opvu e humfnopi us vuomiv qeqis.
 
Access Restricted: Unlock 1,000,000+ Posts

Stop Peeking Through the Keyhole.
Open the Door.

You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.

  • Active Daily: Life-changing content posted dozens of times every day. No dead threads.
  • MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
  • Vetted Network: Connect with founders scaling to 7 and 8 figures.
  • Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."
— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."
— User Richard Peck

"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?

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