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Sweatequity. This unpaid work component is sized in dollars, added to any funds contributed, to represent the total contribution of a founding partner and converted to an equity ownership percentage in a new startup. This term is used to describe non-traditional ways to incent growth such as social-media and viral marketing.
That’s why all those so-called million dollar ideas I hear about as an investor don’t get me excited, and entrepreneurs find that working twenty hours a day often generates nothing more than sweat, instead of the desired sweatequity. Even with the perfect product, your customers won’t even know you exist without marketing.
Those at the other extreme don’t look up from the grindstone long enough to notice whether all their work is producing sweatequity or just sweat. Word of mouth advertising and viral marketing cost big bucks these days so budget for it. Starting a business may be fun, but it’s not easy. Marketing is top priority.
Gadea leveraged his connections in Silicon Valley to seed viral distribution of the product, which, in turn, generated the revenue to hire engineers and scale the company. Co-founder and CEO Kyle Wong, who was featured on Forbes’ 30 Under 30 List, says the company’s MVP was built using “sweatequity.”
That’s why all those so-called million dollar ideas I hear about as an investor don’t get me excited, and entrepreneurs find that working twenty hours a day often generates nothing more than sweat, instead of the desired sweatequity. Even with the perfect product, your customers won’t even know you exist without marketing.
Those at the other extreme don’t look up from the grindstone long enough to notice whether all their work is producing sweatequity or just sweat. Word of mouth advertising and viral marketing cost big bucks these days so budget for it. Starting a business may be fun, but it’s not easy. Marketing is top priority.
Those at the other extreme don’t look up from the grindstone long enough to notice whether all their work is producing sweatequity or just sweat. Word of mouth advertising and viral marketing cost big bucks these days so budget for it. Starting a business may be fun, but it’s not easy. Marketing is top priority.
Gadea leveraged his connections in Silicon Valley to seed viral distribution of the product, which, in turn, generated the revenue to hire engineers and scale the company. Co-founder and CEO Kyle Wong, who was featured on Forbes’ 30 Under 30 List, says the company’s MVP was built using “sweatequity.”
Those at the other extreme don’t look up from the grindstone long enough to notice whether all their work is producing sweatequity or just sweat. Word of mouth advertising and viral marketing cost big bucks these days so budget for it. Starting a business may be fun, but it’s not easy. Marketing is top priority.
I have a ready excuse for squeezing in a little “sweatequity” — I need to get in shape to know my customers’ issues. But take this too far and your productivity drops off the cliff. As founder of a run/bike app startup, I can write off my workouts. However, I also know firsthand that exercise increases total productivity.
We’re testing a viral loop, direct sales, and affiliate marketing.&# Q: “What will be your best channel for customer acquisition?&# A: “I don’t know. Those are answers I respect, because you don’t know everything and neither do I. That’s why it’s a startup.
That’s why all those so-called million dollar ideas I hear about as an investor don’t get me excited, and entrepreneurs find that working twenty hours a day often generates nothing more than sweat, instead of the desired sweatequity. Even with the perfect product, your customers won’t even know you exist without marketing.
That’s why all those so-called million dollar ideas I hear about as an investor don’t get me excited, and entrepreneurs find that working twenty hours a day often generates nothing more than sweat, instead of the desired sweatequity. Even with the perfect product, your customers won’t even know you exist without marketing.
It’s simply an untenable situation to expect the technical co-founder to assume the full burden of risk through sweatequity. If you’re not willing to put money into the project, it tells me you’re not committed and aren’t willing to share the risk. We are where you are.
The hot term these days is “viral marketing”, meaning we won’t do any marketing, but our product is so great that everyone will know about us anyway by word of mouth and through Internet social networks. Investors expect the founder and other principals to have “skin in the game,” over and above “sweatequity.”
The hot term these days is “viral marketing”, meaning we won’t do any marketing, but our product is so great that everyone will know about us anyway by word of mouth and through Internet social networks. Investors expect the founder and other principals to have “skin in the game,” over and above “sweatequity.”
The hot term these days is “viral marketing”, meaning we won’t do any marketing, but our product is so great that everyone will know about us anyway by word of mouth and through Internet social networks. Investors expect the founder and other principals to have “skin in the game,” over and above “sweatequity.”
The hot term these days is “viral marketing”, meaning we won’t do any marketing, but our product is so great that everyone will know about us anyway by word of mouth and through Internet social networks. Investors expect the founder and other principals to have “skin in the game,” over and above “sweatequity.”
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