At least once a week I get an email or contact request along the lines of "I have a great idea and I would love to have you build it for me …. I can’t pay much … but I’ll offer sweat equity". And that’s about the time when I zone out. Keith Peters posted a great response to a similar message he came across. He caught the exact essence of what I think everytime it happens to me.
A few of my favourite lines from his response:
Just because you have a good idea? Most developers have good ideas too, and if they are going to risk not making anything for their hard work, they might as well balance that by doing their own work and making 100% of the profits.
I think most developers, when they look at working on someone else’s project, are not at all interested in investing in an idea. They are looking to do some work and get paid for it.
I agree with Keith, it’s not always a bad arrangement. I have had a few very good opportunities come across my desk structured that way, but most are far from good. If you are one of those people considering getting a developer on board for sweat equity do your research first, make sure you have a really good business plan that makes sense to more than just yourself, and realize that no matter how great the idea, not to many people will work for free, especially when there are lots of paying opportunities available.
You bring up some good points in your post. There is a lot of this “Work for Equity” going around. It can be rather insulting and rarely a good opportunity or investment for the programmer.
The skills of a good programmer really aren’t being appreciated here. Often the amount of equity isn’t in line with the level of effort nor would it equal the amount that would be paid for such development were it to be paid for fairly at agency rates.
Generally, if a ‘business guy’ has a ‘good idea’ and doesn’t have ‘money’, that means the business guy isn’t really very good at business. Execution is King, ideas are nearly valueless.
Now, if a ‘business guy’ had an ‘idea’ and had a ‘revenue stream or first customer’ already in place, that might make a lot more sense, but then again, if the ‘business guy’ was any good at business, they’d have capital and resources.
DW
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I heard a good response for this kind of request years ago. Basically:
“You have a good idea, but you want me to take the risks by investing my time. If you are so certain that it is a good idea that you are willing to risk my time, then you should be certain enough to risk your money – by paying me for my time.”
Ran across a great post on why there is no such thing as a free developer.
When you ask a developer to work for free, you’re basically asking them to invest in your company. Not money, but knowledge and time.
If the project is worth investing in, find a real investor and hire a developer.
It’s like asking your local car dealer to give you that Aston Martin for free, because you have a great idea he’ll get some money once you start earning.