Equity and hybrid deals explained

You earn a percentage of the revenue you drive.

A growth agency might take a $3K monthly cash floor instead of a larger retainer, plus 10% of revenue above an agreed baseline.

Ask how revenue gets counted, and where the baseline sits, before you sign.

You are compensated in equity when the startup’s cash is tight.

The grant is restricted stock or stock options, vesting across four milestones in unequal portions. The animation shows one example.

Equity counts as payment only when it is issued. If it is promised and never issued, the services are treated as unpaid and you keep the work.

You get a guaranteed cash minimum plus equity upside.

A fractional CMO might take $5K a month plus 0.5% equity vesting over 12 months.

The 5% processing fee applies to the cash you receive, not to the equity.

You are paid when a milestone is reached.

You and the founder agree on each milestone and what “done” means upfront. If a milestone isn’t completed, payment doesn’t trigger.

You see the full offer before you decide.

Check what you are paid, in what form and when, then choose whether to apply. You can ask for an NDA.

The terms go into the Project Assignment before any work starts.