Who Else Wants 1,000 Options?

danielodio.com

2 pointsdanielodio4 comments

This offer undermines the reason for having options (building loyalty among employees in lieu of high pay at a time when the company can't afford high salaries). To me, giving away options to non-employees is the sign on an inexperienced company.

There's a cost to everything. One of those costs is hiring someone (or some company) to do testing -- something that's especially hard in mobile since it's not a mature technology.

Giving away options is just another way to pay that cost. For a small company with few employees, the ROI is pretty huge.

I'm not saying it's right or wrong, just that it's an innovative solution to a tough problem that works well within the constraints that a very young company has.

> There's a cost to everything.

My point is that when employees realize that strangers are being given options, it diminishes their value in attracting and holding onto employees. It undermines the loyalty factor, the incentive to be an employee.

But that's my point exactly. There are no other employees at this stage. Or if there are, it's a co-founder or other high-equity employee.

The whole reason to do this is to keep from having to hire an employee (yet) to handle this function.

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