Ask HN: Is it a good idea to become a service provider for startups?

[designhacker]

After years of frustration, I recently quit my job in a large company to do what I do best (UI and Usability) with people who are passionate about their work (Entrepreneurs).

I am not interested in working with large companies because I know how long it takes to get anything done. I love how agile and lean startups are, and I know how rewarding it is to have my work reach users quickly and often.

I've been approached by several startups to help with design, but almost all of them cringed at the price I quoted (which is less than the price I'd quote more mature companies). Some of them offered equity, but it would have cost more in lawyer fees to work through the short term equity agreement (and I don't believe startups should hand out equity instead of cash for short term services).

Is it a good idea to become a service provider for startups? What would be a compensation model that would work best for me and the startup founders?

Thanks!

[patio11]

You could work for later-stage startups that can afford your fees. Someone who had just closed several million in funding, or someone whose business was going like gangbusters 4 years in, might not have to log in to online banking prior to every purchase.

I do (very occasional) consulting, and do not accept payment in ramen. Some folks who have contacted me about prices are dissatisfied with this. I've just learned to be OK with that.

[designhacker]

Through my interaction with startups over the past few months, I realized that the later-stage startups are not hiring freelancers. Early stage ones are hiring freelancers (especially in UI/Usability field) due to the limited supply, but early stage (self-funded) startups don't have enough dough.

It's an interesting problem because those who need the service the most (in the first iterations of their products) are the ones who can afford it the least.

[starkfist]

No, it is a bad idea to become a service provider for startups. Firstly, startups are rarely looking for freelancers. Secondly, startups who ARE looking for freelancers are usually looking for free freelancers.

If you are independent you have to charge a lot of money to cover the time when you aren't billable and the last thing a startup wants to do is pay someone a lot of money.

[grep]

For how much do you quote? (no need to be exact)