Wow. I'd rather go on fucking Shark Tank.
If someone is willing to take $5,000 to do the heavy lifting up front (therein taking most of the risk) for only 50% equity, their idea is either terrible or they aren't committed to seeing it through.
If someone is willing to take $5,000 to do the heavy lifting up front (therein taking most of the risk) for only 50% equity, their idea is either terrible or they aren't committed to seeing it through.
If it turns out to be a crap idea you lose 50% of a crap idea. If it turns out to be a great idea you gain 50% of a business.
I have made and launched dozens of sites. The only ones I was paid to build belonged entirely to someone else. The ones I made for me .... I could barely afford hosting at some stages in my life.
Employment - Low Risk, Low Returns
Startup - High Risk, High Returns
I love how this preposition is somewhere in the middle.
I wouldn't take this deal, because stopping / starting employment isn't that easy for me, but I can see other people rationally taking it.
And if other people think he's underbidding, I would encourage them to bid him up.
But for those people who freelance, and are in between jobs this may well be an ideal opportunity to (continue) being paid for doing something they have been thinking about for a long time.
It's okay if you don't hit a home run. It's even better if you don't starve or get evicted for your troubles.