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by pault 2623 days ago
How many new companies are profitable, and if they are, why would you want to work for a new company that isn't plowing all of its profits back into research, product development, and growth?
2 comments

Because I get a share of their profits? If they plow all of its profits back into R&D, assuming I got no equity, what do i get as a reward? A potential chance to say i worked for a company that IPO’d? More coworkers?

Profit sharing means money in the pocket for me. Actual hard, green cash.

That's exactly my point. Ideally, you should take a competitive salary. If you have to take some kind of alternative compensation because you believe in the mission or whatever, most startups aren't profitable even at IPO/aquihire stage, and in the case of Amazon, could have been profitable years earlier but reinvested everything and then some. I just can't see a scenario where it makes sense to take profit sharing at a new, growing, unproven company.
Doesn't all of that apply to equity too?

I'm only saying that profit sharing sounds better than equity, of an unknown unproven startup; not that it'sa guaranteed key to making you rich.