Question
They are willing to go salary free and on a 12 month contract and being very open to whatever I throw at them. Very cool guys and both seemingly committed, but of course I need to stay at the top (or close to the top) of their priority lists while also protecting my return.
Answer
This is a tough question. I would recommend evicting their input to the startup- some might be better for you to pay "cash" vs equity, specially if you feel the company will outgrow them quickly. You're in this for a business not friendship or charity, with that said when giving equity also consider vesting them and allocating % as they complete and it as the company grows... Be sure to keep stock set aside "owned" by the company itself for investors if you plan on raising funds. One thing I've done is having each partner chip back into the pot for investors as well from their assigned stock since it benefits all anyway... Call one of us here for more direct help evaluating your situation. :)
