Does anyone know Terry Matthews of Mitel fame?

Mark is correct that the best advisors should have skin in the game but that advice is applicable only when you and your business are obviously investable. I've engaged advisors at times when I knew I wasn't ready to ask for their money and I've often begun advisory relationships in the earliest of stages where I like in and believe in the entrepreneur and the idea but they don't yet meet my investment criteria. Also, the old adage is true: Ask for advice, and you might just end-up with the person offering or even asking to invest. This has happened to me again on both sides of the table. In terms of compensation, I have a chart that spells out specific advisor expectations and stage-appropriate equity based compensation that I can email anyone who DM's me here through Clarity. Mark's answer is lower than I would accept for a start-up that isn't well funded. But anything above 1% would be really unusual and would have to be a really, really hands-on advisor or partial contributor as a team member. It should never be money on a retainer basis. I now have several people who call me regularly through Clarity to talk through specific things but other than that, it wouldn't be reasonable to expect cash compensation in a formal advisory role. And I would personally be vary of that because if they're not taking equity, then they really, much to Mark's point, have any skin in the game. I have a standard template that I use as an advisor (it was originally given to me by a company I advise) and I know use it with my own advisors, so happy to pass a stripped version of that agreement as it's the best one I've seen and is clearest for both parties. Just DM here via Clarity if you want it.

Approach it as if you were applying for a position in an organization. You will want to find the right industry, the right management team, the right opening on the board [either governance or advisory], the right person to help you. Next create a statement that says why you on this board. Then sell it.

Having been in the position as an advisor, this is what I think an advisor expects: a. Equity Ownership. This depends upon how much involved an advisor into the start-up. b. A flat fee and a percentage pie on every transaction the stat-up makes(Not the profit margin) c. At my early stage, all I want is a testimonial from start-up n how I helped this business. In my early stages of adviosrship, I want good customer testimonials. This is a win-win situation for both of us. I get to learn from him many things which I couldn't have done myself. d. It is strategic importance to my own idea and I would love this company to scale and raise the funding and in this case I would expect a contract from the company which I helped.

Great advisors are driven by 3 primary variables: the industry/sector of your product, your existing network, and where you are physically located. Industry - Your industry may or may not be network driven, in the sense that industry members regularly come together organically (venture capital) or stay relatively separate (accountants). If they regularly come together, industry events are great ways to building your network and eventually finding advisors. If they do not, this is where the value of your network comes into play. Network - Your network is the first place to start, going first through 1st degree connections and then to 2nd degree connections. 2nd degree connections can ultimately be more helpful as the individual has less of a personal relationship with you and may be more amenable to a business relationship that is more objective than your close friends could ever provide. Physical Location - While this may be difficult to permanently change, your location matters, and your proximity to the circles you care about matters. If you are not already in the center of where you want to be, it may be worth a trip to where the highest number of potential targets are if you can stack enough meetings together. Happy to further expand on a call if you'd like.

"Is it worth my time?" Given that the compensation from an advisory board is equity in a private company with no actual market for it's securities, this is really the most important question. The likelihood that advisory board compensation will result in real financial compensation is very low, and yet the demands on your time are very real and can be significant. Is your time better spent in other areas? "Is this company the most deserving of my generosity?" Because I enter into advisory relationships understanding that the likelihood of real compensation is so low, I evaluate whether to have such a role more from a perspective of how much I like the founder(s) and how much I want their product in my own life. If I don't really enjoy spending time with the founder(s), it's really not worth my time and energy. If I don't want the product in my own life, why would I spend time thinking about it and the business behind it? To get clarity on those two main questions, I don't enter into advisory agreements immediately. I only do so after I have spent some time with the founder(s) on more than one occasion. And what I'm particularly observing is the founders' willingness and ability to receive feedback. Ideally, the founder updates you specifically on the actions taken and not-taken from the last time you were with them. We all observe differently, but I think it's paramount that you trust the advisor actually can implement your advice and counsel. Is the Company "hoarding" advisors? More than 3 advisors to a Company is generally indicative that the founder is more interested in building social proof than getting advice and counsel. That can sometimes be acceptable in industries where proven expertise is really helpful and almost required in the early days of the business. "Are expectations aligned?" Has the company articulated clearly the expectations of your time and involvement in a way you feel comfortable with being able to deliver upon? Happy to speak to you in a quick call to answer any further questions on the topic.