Thank you, Mr. Berkus. I found your video on a lark, and I'm better for it. You offered a particular area of consideration that wasn't as clearly discussed in many other videos on a similar topic; specifically, a reasonable number of visits and phone calfs to advisers as well as consulting fees. 2:22 I'm happy to subscribe to your channel and look into your books. 😊 PS: No, I'm not a bot. 😅
Extremely helpful, thank you very much. I was recently approached for an advisory role with a startup. This gave me the perfect high level view of both expectations and compensation.
Hi Dave! This was great! I have a question I'm hoping you can help with. I need your advice. I've been asked to join an advisory board for a very early-stage company with just a Founder/CEO and a BD employee. The founder suggested that my role might require more time and effort than I initially thought. Can I combine an advisory role with an executive position, and what's the suitable compensation, considering the company's stance on stock issuance and my desire not to work for free?
Thanks for the question. Advisors should expect to spend about a phone call or two each month and one several hour strategic planning session each year in return for what is usually 1/4 to 1/2% in options at the current option price. More than that, an advisor can charge the company as a consultant with hourly fees. There are variations on this. You asked about an executive position. Sure. But most early stage companies cannot afford this. And be careful. If full time (over 32 hours a week) and / or you have no other clients paying you, you must be an employee for tax purposes, not an independent contractor. Another variant that works is an hour a week, usually via Zoom, where you charge a small monthly fee. You can do this for multiple clients of course. Most client companies can afford such an arrangement which is much cheaper for them than any executive position. I hope this helps. - Dave
Any group, company or non-profit, would benefit from an advisory board well used. The most visible and knowledgeable candidate might be named "Chairman of the Advisory Board." It's a good way to gently move a member of the board of directors off that board sometimes as well. "Well-used" means having this group exposed to the problems and opportunities of the organization, not just be names on a web site. Whether the president of the organization calls each occasionally for advice, or better yet, the group gathers once a year, "well-used" is an important part of this opportunity. -Dave
