Ask HN: Need help deciding on a new marketing person for 2 person startup

[s10r]

I am 24. During my studies, I launched a web app (4 moths ago) as a side project with my friend. Initially the response was ok, there were a about 300 signups. Then, the signups stopped and it hasn't picked up since then. We stopped working on it a couple of months ago.

Recently, I was contacted by a product/marketing person interested in the project who wants to help us with it. I have no idea how this works, but I do think that marketing can help it get up again.

How do we proceed with this? How do I find out if he is serious and good enough to be involved with it? What kind of questions can I ask him to see how he can help with the marketing? And, how do we decide how much equity he gets? Is it usual to have an equity based on milestones or you give it up right away before someone starts working?

[codyguy]

DO NOT offer equity right away. Marketing/Sales guys are good at selling themselves, but bringing in revenue is tough. Not everyone can do it consistently.

Let them have a stake in the sales (say 10-15%) and make sure it's transparent that sales are coming through him/his efforts. Assume you'll be hiring more on these kind of terms.

Once you see something rolling, you can offer some equity accordingly.

You'll know how confident he is when you tell him there's no salary, only %age of sales he brings in.

[s10r]

Thanks. I didn't think of this before. It certainly looks like the way to go.

[nooron]

Suggesting a sales or marketing employee operate solely on commission w/o equity in a startup isn't a great way to gauge their confidence. It's a good way to ensure good sales people run away.

With a new product (or with an old product repurposed for a new industry), it can be hard to predict the sales cycle or to develop the appropriate pricing strategy. If the salesperson is strictly dependent on commission, they'll do anything to close-- including sell the product to the wrong people or with the wrong expectations. This will reduce the amount of useful feedback you get and waste everyone's time.

Someone recently offered me this deal at a startup I otherwise found very compelling. I didn't take it.

[codyguy]

Good luck.

[bdfh42]

Assuming that you are not making any money with this project at the moment then you don't have a lot to lose - except perhaps more time on a project that ultimately goes nowhere.

With a low risk then you can offer a new founder up to a third of the business. The challenge you should set is to "find the customers". This may well involve at least a partial "pivot" - and that is where the extra work comes in.

You don't have to incorporate and formalise the arrangement until the new revenue stream is located and at least partially proven (you can just write and sign some sort of informal agreement). Once you have a clear view of your customers, what they want from the product and how much they are willing to pay then you have a business and a proven marketing founder.

[s10r]

Thanks for the reply. Yes, we are not making any money right now and have nothing to lose.

We surely want to give it a try with the right person. The main point that we are still not sure about is what kind of questions we should ask him to make sure that he is a good fit for this. If this was a developer position, I would know how to evaluate him, but I have no idea about what it takes to be a good marketer. I guess we will need to let him try and then see how it goes.

[bdfh42]

Yup, I understand where you are coming from. You can look at someone's job history if they are not too young to have a "track record" (job hopping would be a counter-indicator while promotions would be a positive).

I was lucky enough to have been a mentor for a pre-accelerator start-up last year alongside someone who proved over a few months to be an effective marketeer and manager. That start-up foundered for all sorts of reasons but the marketing person is now a key part of the team for my current start-up.

I suppose I am saying - the only way to find out is to give them a try. If someone is genuinely enthusiastic about the product and has some positive ideas and the cultural fit feels right then why not?

[s10r]

Yes, your words are quite encouraging. I'll give it a try and see how it goes.

I am not a people person and never been to that line (marketing, hiring) so it feels a bit different and new altogether. At some point, this has to be done, so why not now.

[ohsnap]

How were you contacted? Is this through a personal connection or is he fishing?

I'd suggest to ask for references. Follow through references and ask about how he/she helped them. I'd also make it clear up front that you have little capital to pay him or any marketing strategy - he might be assuming you have the money to do so.

Equity is typically not milestone based. You would typically agree to a form of 'sweat equity' - meaning the amount of work he puts in for a piece of the company.

[logn]

Make sure any equity vests over 3-4 years, with a 1-year cliff. If the marketer doesn't do well, fire before year 1 and lose no equity. Also, I'd have him just volunteer for a week or two before as a trial/interview. I have no idea how you could interview him in a conversational way effectively.