We all know the expression “pay peanuts, get monkeys”. We use it to emphasize that quality comes at a cost. Much as we like to think that having to pay the true value for something can be avoided, as with so many other things, nothing is for free. Yes of course it is wise and great that you can save money on advisers and specialists, but what are you actually getting? Apart from that, is being “cheap” not sometimes counter-productive?
In the blockchain and crypto world however it still seems to be a common practice. Experts, advisers and Board member are more often than not being paid millions and millions…… of tokens that are yet to be mined, waiting to be issued, even further waited to be listed, not even close to being traded, let alone to have developed value. And after having jumped through all those hoops successfully, the vesting period kicks in. But on the other hand, the necessary work has to commence more or less immediately.
But not only work, something else and much more valuable is at stake: reputation. Quite often we are being asked as advisor or expert precisely because we have an excellent track record in a specific field, a stellar reputation in the industry, or access to a much-needed network. All extremely valuable and important qualities, and qualities that did not come overnight but as a result of long and hard work. Any advisor who values his reputation – and in some ICO advisor cases actually has a reputation – would be very, very careful when his or her reputation is on the line. Not being adequately compensated for hours spend is one thing, being robbed from one’s reputation is a totally different matter.
There is a reason they are experts, and a reason they ask adequate compensation for their time, expertise, network, and added value. Perhaps you need to put yourself – as a start-up founder – in the shoes of the expert. Would you go the extra mile for something you have little or no control over? Would you possibly gamble that away? So, rather than focusing on peanuts, lets focus on eggs and go with the: “you need to break an egg in order to make an omelet” ….