Question
I've met with some advisors and have proposed the idea of them joining my company advisory board. Compensation will be paid with a small amount of equity. But, questioning what is the right amount to offer?
Advisory Objectives:
Plan strategy development
Assist in recruiting
Introductions to investors
I've searched online and read some very interesting blogs. such as this one: http://fi.co/contents/206#
Im not sure if the 1% is to more or less what i should be offering to the advisor.
I have much respect for my advisors and hope to compensate them with the right % for their contributions.
*I currently own 100 shares in my company. Im going to change that amount to 10,000 shares.
We are a seed stage company but my advisors see great potential in my business and its growth.
Happy Holidays Everyone!!
Answer
Most advisors get between .25% to 1%.
1% assumed they are VERY important and will be active in either recruiting or raising capital (2 of the most important areas).
Advisors don't do it for the equity - at least they shouldn't - what they want more than anything is recognition from you publicly that they've been helpful to you + feedback loop (follow up) that you're listening and implementing their feedback.
Hope that helps.
