Getting a website designed for equity

[kguldi1]

Hello Everyone,

I was wondering, how common or possible is it to get someone to design a website in exchange for equity in the business? I have a business idea for website-based company but I don't have the means to develop it by myself. I'm also limited in funds and would prefer to use what funds I have to put towards marketing the site to gain customers. Is this a fairly common practice or am I barking up the wrong tree?

 

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[Guest931Xfjyx]

Hello Everyone,

I was wondering, how common or possible is it to get someone to design a website in exchange for equity in the business? I have a business idea for website-based company but I don't have the means to develop it by myself. I'm also limited in funds and would prefer to use what funds I have to put towards marketing the site to gain customers. Is this a fairly common practice or am I barking up the wrong tree?

This sounds like a negative financial choice for you unless you're expecting someone to build you a website that resembles Facebook.

 

[kguldi1]

This sounds like a negative financial choice for you unless you're expecting someone to build you a website that resembles Facebook.

Not quite like facebook...more along the lines of Opendoor but for a different market.

 

[Guest931Xfjyx]

Not quite like facebook...more along the lines of Opendoor but for a different market.

My point is that it would be better if you found the money to hire someone inexpensively for a job such as this rather than giving up equity in your business. I've read a post on here recently by someone starting a local service-based business that had a website made for them entirely for free simply by joining a web-dev discord and asking the aspiring developers there for a website. All he offered in return was a testimonial.

Hold onto your equity.

 

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[heavy_industry]

Before looking for a business partner you should ask yourself what can you bring to the table.

Having an idea is not enough.

If you have no money and no skills, and expect others to do the work for you, you run into the real possibility of someone identifying this opportunity and just executing it themselves, without you.

 

[BizyDad]

I'm in Phoenix too, and my company will at least consider it. We've built websites like this before.

Shoot me a DM and let's have lunch. Full disclosure, we will probably pass, but you'll at least get a free lunch and a good conversation about how to structure a deal like this.

 

[Boy Muhammad]

Check out no-code platforms like Bubble.com and Adalo, you can get an MVP up and running in a week, there are tutorials on YT on how to get started.

 

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[kguldi1]

Thank you all for your replies I appreciate the input. BizyDad, thanks for the offer. I have some personal items to take of the next few weeks with ill family but I may send you a DM once things settle down.

Thanks again!

 

[BizyDad]

Thank you all for your replies I appreciate the input. BizyDad, thanks for the offer. I have some personal items to take of the next few weeks with ill family but I may send you a DM once things settle down.

Thanks again!

Okaaaay. So...

For starters, I'm sorry to hear about your family illness. That's rough, and you've got to put family first.

That said, just a little feedback. Hopefully this edifies you or at least some of the readers here...

Tip #1 - asking someone to work for equity is like looking for an investor. They are investing their time into your dream.

When you decide that you don't have time for your own dream, they're probably not going to believe in you. And they probably aren't going to want to invest in you.

Tip #2 - when looking for people to believe in your dream, consider your word choice.

I "may" reach out?

You literally got offered a free lunch and free consulting from somebody who has put these kind of deals together before.

With a small chance of actually having a partner who can not only get this built but help you market it as well. And experience raising capital, just in case your idea is big enough that we might need it.

And you may reach out?

Please, don't do me any favors.

Before looking for a business partner you should ask yourself what can you bring to the table.

Having an idea is not enough.

If you have no money and no skills, and expect others to do the work for you, you run into the real possibility of someone identifying this opportunity and just executing it themselves, without you.

Pretty much nailed it, didn't you @heavy_industry

 

[Antifragile]

Masterclass in polite “spanking” by @BizyDad right there.

Hello Everyone,

I was wondering, how common or possible is it to get someone to design a website in exchange for equity in the business? I have a business idea for website-based company but I don't have the means to develop it by myself. I'm also limited in funds and would prefer to use what funds I have to put towards marketing the site to gain customers. Is this a fairly common practice or am I barking up the wrong tree?

You’d have to share more to truly understand your offer. What is common and what is effective can be different. If you are here and read the books, you are familiar with CENTS, right? C = Control. One way to protect your position of control is to do as much work yourself as possible before introducing new owners.

Ownership is like marriage, like it or not - divorce is expensive.

If you believe in your idea you start with raising money from the 3F
Family
Friends
Fools
And you give them non-voting shares.

The other reality is that anyone typically willing to work “for equity” may not be best for your business (sorry @BizyDad , you may well be the exception to the rule, I don’t mean to offend). Someone in web-design business has their business, their objective is to create great websites and get paid.

Equity in exchange means they aren’t getting paid unless YOU succeed. That’s investment. Let me put it another way, if you can choose anyone you want to build your website, the group that accepts equity instead of cash is a smaller universe of options. You are limiting options from free exchange of money for service to a barter.

Instead of barter, do two things: 1) Raise the money from FFF and 2) go hire whoever you think is best suited for YOUR business.

 

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[BizyDad]

The other reality is that anyone typically willing to work “for equity” may not be best for your business (sorry @BizyDad , you may well be the exception to the rule, I don’t mean to offend). Someone in web-design business has their business, their objective is to create great websites and get paid.

No offense taken. To peel back the onion a little further...

In order for me to be involved with this, I would have to convince my business partner. Technically he's the one that would be coding it. He's the one with the experience in that.

I'm just a humble search engine marketer with a background in finance.

The sad thing is, I had already told him that I planning on having lunch with someone with an idea. I was already laying the groundwork...

And back in the day, he got burned enough times that he swore he would never again work for equity. He's exactly what you describe. He wants to get paid for his work and call it a day.

The only way for me to convince him to do it, is if I'm helping steer the ship with my marketing/consulting/guidance, and if there is this third person that's actually "making things happen".

Somebody with a plan, somebody with a vision.

So I'll take meetings in the off chance that I meet someone like that. You never know.

Of course tomorrow my partner will say he knew...

I'm just an optimist I suppose.

Not quite like facebook...more along the lines of Opendoor but for a different market.

The thing is, my partner's actually built a stripped down version of Opendoor but for a different industry before. He's also built a stripped down version of LinkedIn. And of course we're building a piece of real estate software now for a nationwide brokerage.

People who are looking to give up equity don't really understand how much it takes to build platforms like this. Even just stripped down versions.

For example, you called it a website-based platform. I'm going to make an assumption that it's just a matter of time before you want an app. And then we're going to be talking about PWAs.

So let's skip ahead and just say we want a PWA.

But you hear about somebody talking about no code solutions, or other people who tell you to just teach yourself to code, and "they" (they being company founders like you) think anybody can do it and don't really value the coder's time.

You're going to find someone and come to some kind of basic agreement that the coder will get X equity in order to build the MVP of the platform.

Awesome. You feel so relieved. You're going to get your dreams coming true.

Now let's assume a best case scenario where you actually got lucky and found the right coder on the first try.

Then the platform ships, and things are going great and suddenly there's all this extra code that needs to be done.

So does the coder get more equity? Or do we have to raise capital (FFF) and get a new coder involved?

At what point can the business support staff? Who gets paid first, you or him?

If you don't have an eye for this eventuality, you're going to get stuck in the no man's land where so many others who traded time for equity get stuck...

And then you're going to have a partner who still isn't making any money, and you're going to start thinking about diluting them while they are expecting to get paid for their time, and watching someone else come in and complain about all the code they wrote. And that new person is getting paid for their time...

It's a minefield. But all of these things can be overcome with proper planning.

I'm also limited in funds and would prefer to use what funds I have to put towards marketing the site to gain customers.

See, this is the red flag right here.

Someone who thinks that it will take money to acquire customers. Like money is the primary way to solve this problem.

I don't know what that niche is, I don't know what the plan is, but I do know that many many web-based companies did not start off by spending marketing dollars acquiring customers.

If the idea is solid, use word of mouth to grow. Roll up your sleeves and make some cold calls. Get well connected beta users to test the software before you launch. They become your first brand advocates.

Save your dollars for building functionality.

Ok, one final tip...

Whatever it is that you want to build, ask the coder that you end up thinking of working with to show you examples of already having built it. Or built functionality similar to it.

If they don't have that, there's a pretty good chance that they're just talking out their Ying Yang.

I have seen too many people trying to recreate Opendoor or Amazon or whatever only to end up with a super janky WordPress site because they didn't know they were hiring the wrong person.

Masterclass in polite “spanking” by @BizyDad right there.

Not quite the word I would use, but I do think it's funny that you and I were recently talking about the ability to write people's business plans for them. What was it you said?

Like playing tennis with a curtain?

 

[Andy Black]

What can you do to make a sale this week? If you need a website built first and you don't have the skills, network, or funds to get it knocked up quickly so you can make a sale this week ... then I'd say you don't have product-founder fit yet.

So I'd consider doing something that could make a sale and that could be a small step towards your vision.


Whenever I hear people say they have an idea for an app or a website like <insert large platform here> I run the other way.

In fact, I think the word "idea" has me hightailing it out of there.

Show me what you've already done. Show me sales you've already made.

I'm not building anything for equity when it's currently valued at zero. I'll consider performance related, but again, what's the current performance I'm trying to improve? Is there product-founder fit? Is there product-market-fit? Tbh, I rarely even do performance related as I don't trust the client to have their ducks in a row.

"Tell me what you've done and I'll tell you who you are."

 

[heavy_industry]

Pretty much nailed it, didn't you @heavy_industry

In my limited understanding, this is how I see things:

Business (and any other worthwhile pursuit in life) is very similar to war. You need capital, manpower, logistics, a goal, a strategy, and a leader.

When starting a business, the idea itself is the least important thing. Potential ideas are everywhere, most of them are stupid, and they are usually overhyped by people that don't understand how business works.

What really turns dreams into reality is execution. And for this purpose, there are 3 main things you can bring to the table:

• Money
• Skills
• Insanity - the relentless pursuit of a vision (very different from "idea")

I would argue that the third one is the most important.
Why? Because in life if you really want something, you will get it.

If you burst with energy and are extremely stubborn and tenacious, you will always find a way to overcome any obstacle. People will notice this, and they will actually open the doors for you.

This is happening simply because people love those that live a life of purpose. People get excited by your own enthusiasm, and they will want to become part of your vision.


I remember when I started my first company at 19, I was a F*cking force of nature.

I was young, stupid, had no money, no skills, and no brain.

But I had an insane level of energy and enthusiasm. And as a result, the world was literarily smiling at me. Everyone I've ever dealt with was happy for me, was trying to help me, and they've all had an unusually high level of respect for me, solely because of my energy, drive and enthusiasm.


"Ask, and it will be given to you; seek, and you will find; knock, and the door will be opened to you. For everyone who asks receives; he who seeks finds; and to him who knocks, the door will be opened." - Matthew 7:7


Definitely the most wonderful experience I've ever had in my life. That's when I first got a taste for entrepreneurship, and the pure sense of FREEDOM that it can give you.

My goal is to become that kid once again. Just with a little more wisdom.

---

So yeah, if you have no money and no skills, you better have the motivation and drive.

Turning down @BizyDad 's offer was a big mistake. Because he is one in a million.

Your next "business partner" may not be as benevolent, and might just take your idea and run away with it.

 

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[Isaac Odongo]

Thank you all for your replies I appreciate the input. BizyDad, thanks for the offer. I have some personal items to take of the next few weeks with ill family but I may send you a DM once things settle down.

Thanks again!

Well, if I were you @kguldi1 , I would make things smooth quite quickly with @BizyDad , not because he will make a U turn to reconsider your offer but because the reply you gave to his offer, which I found very generous and shockingly so. My gut tells me he was very genuine. I have seen a number of his posts and I would take the offer in a blink.

Lunch with @BizyDad wouldn't take you forever so that your family is abandoned because you are having a meal with him and chatting about what you need more than he does. You need his help more than he needs yours. Your family needs you in business more than ever. I am quite sure if you had got a deal here you have gained much.

If I were you I would smoothen things as a sign of maturity. And if done well, I gain more respect than anything else and in future I would be seen with more consideration, as serious a person.

Anyways your huge blunder or whatever it was has been my blessing in disguise. I have learnt some super gold stuff here.

Language is very important. Choice of words is crucial.

Best regards

~Isaac~

 

[BizyDad]

Well, if I were you @kguldi1 , I would make things smooth quite quickly with @BizyDad , not because he will make a U turn to reconsider your offer but because the reply you gave to his offer, which I found very generous and shockingly so. My gut tells me he was very genuine. I have seen a number of his posts and I would take the offer in a blink.

Lunch with @BizyDad wouldn't take you forever so that your family is abandoned because you are having a meal with him and chatting about what you need more than he does. You need his help more than he needs yours. Your family needs you in business more than ever. I am quite sure if you had got a deal here you have gained much.

If I were you I would smoothen things as a sign of maturity. And if done well, I gain more respect than anything else and in future I would be seen with more consideration, as serious a person.

Anyways your huge blunder or whatever it was has been my blessing in disguise. I have learnt some super gold stuff here.

Language is very important. Choice of words is crucial.

Best regards

~Isaac~

There's nothing to smooth over. I'll be available for lunch later.

When we're talking family health, that has to be the priority. No need to add to the man's (woman's?) stress any more than already exists.

 

[Isaac Odongo]

There's nothing to smooth over. I'll be available for lunch later.

When we're talking family health, that has to be the priority. No need to add to the man's (woman's?) stress any more than already exists.

True. You are right.

Family health is important. Maybe my head went away with me.

All the best.

 

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