3 F***ing good reasons for freelancers to accept equities

Introduced first on my private email list.

I have been working with startups for years now, most often at the very early stages. They all have the same reoccurring issue; almost no cash, but huge needs. They need to develop their product, spend money on prototypes, web platforms, production, marketing, and so on. This requires a lot of time and energy (which they always find) but they can’t make real pens without cash.

What they do have is potential. A potential to turn a few dollars of investment into thousands in revenue. You can be part of this by accepting equities in exchange for little or no cash. Investing your time and energy in a startup is not only a safe bet, it’s actually a very powerful tool to go beyond the simple client/freelancer relationship. I like to think of it as 3 investments in 1.

1) Investment in better partnerships

You’re not someone who’s only in it for the money, but rather someone who is interested in the success of the whole project and company. And that’s the kind of person you also want to work with long term.

Entrepreneurs are entrepreneurs forever, if this startup doesn’t work out, the next one will, or the one after that. Each time they will need a website, branding, a digital strategy, and so on. Why would they waste their precious time looking for a new freelancer or an agency when they already have you? They’ll naturally come back to you because you believed in them, a trait that’s very valuable in the doubt-filled world of startups.

2) Investment in more motivation

Working just for the financial benefits is a completely valid concept. It can absolutely encourage you to do great work. But working towards the success of an idea, a startup, a team, is so much more inspiring and motivating. This approach will push the quality of your work to the next level and you’ll commit beyond the few hours you billed. Working with some risk and pressure is the best way to push your limits and reach excellence.

3) Investment in your network

An individual who is taking risks for you is someone you’ll recommend, period. Three years ago, I developed a startup’s first website, we had a 50/50 cash equities deal.

The project didn’t turn out well and I never got the opportunity to transform these equities into cash. $10,000: lost.

However, in the meantime the company had introduced me to three other clients that represented earnings of around five times this amount for me. So, was it a financial loss or an investment in networking?

Of course you never how things will turn out, and that’s why there is an opportunity in accepting equities from startups. Investing your time and energy in such a project as a freelancer means much more than just a bet. That’s a much less risky investment than it may appear, simply because the rewards go far further than just money.