Accepting Deferred Compensation

Question:

Is it possible to hire Mahar Enterprises, Inc. Consultants on an “Equity Participation” or “Deferred Compensation” basis?

ANSWER:

Yes (but we are very selective)

QUESTION:  I am a consultant, contractor or artist who is considering a deferred compensation / partnership / equity deal.  Can you help me?
ANSWER: Yes  (read on, these are our benchmarks for consideration - if you are negotiating an equity deal or deferred compensation package, feel free to give me a call – “documentation” is the key to getting paid and I can certainly help).

I and my team have the ability to multiply your effort, business potential and budget in ways that nobody else can.  That’s a fact.  If you’d like to qualify for startup or  launch support under more a negotiated “we’re in this together” manner, we will entertain it.  There are some things you should think about before contacting us:

1. Equity Participation is not FREE help, it is a schedule of discounted and deferred expenses (or a portion of ownership) because we believe in your project or business.

2. Our deferred fee means “extremely low direct expenses” for a defined window of time (while your business is positioning itself or an idea;  and it is only intended for the startup or growth phase).  Limiting your overhead can be critical to the success of a launch/startup.  That does not mean “no budget”.  We don’t typically invest anything other than our time (all other expenses must be covered).   There are always extremely rare exceptions to any rule.   On qualified projects our deferrals have been anywhere from $20k-2M in equity participation.

3. Our fees can be deferred as much as 90% for the right project.  Regardless, our labor rate is never less than “minimum wage, plus expenses” .  Your business needs to demonstrate that it can sustain a bare bones structure (and comply with employment laws).   A token wage also serves as interest on a loan (a loan that we only collect on if we are successful).  To be clear, in order for a project to qualify for support at “minimum wage” it has to be pretty damn cool, profitable and ready for the push that we are equipped to provide.

4. If you don’t know what the “other expenses” are, you can contact me for a free initial consultation.  If you aren’t prepared to pay at least minimum wage for the support of an extremely talented and experienced consultant/team OR release some management control OR release profits (or some combination of all of those things), please note that our consulting rates are $130/hour for all personnel.

5. The benefit of deferring expenses and engaging with a talented team is that your startup costs are lowered significantly (immediately reducing your need for fundraising on challenging projects).

6. Do what you are good at and be prepared to put down the rest.  You have a “big idea” but you you can’t do everything yourself.  At some point you will need a support team and employees.  Sales, Accounting, Strategy, Technology, Production, Purchasing, Negotiations, Licensing, Legal, etc…please give some thought to where you are most valuable in your business and be prepared to explain what you need in order to keep doing THAT (remain valuable).  You don’t have to “trust” people (you don’t even have to trust us)…but you can’t do it all by yourself.  

7. Be prepared to communicate strengths, weaknesses and concerns (we need to know all of them if we are going to work together on YOUR project).

8.  If you seek my review and/or endorsement of your concept/business, I don’t charge to review and submit my formal opinion (if I think you’ve got a great idea you can quote me all you want).  On the other hand, if you need help or want to attach my resume formally, it requires a written agreement (including compensation).

In all cases: Risk = Reward

If you ask us to share your risk, please be prepared to entice our interest with the appropriate rewards.

You are considering a financial arrangement for support (with rewards later) because you need help or talent or money or all three…and you need those things right now.  Please be prepared to explain why you need it and why it deserves our attention.

We’ve helped countless businesses achieve their goals.  We want to help you.  I want to help you.  I won’t waste your time and I will assume that you don’t want to waste mine until it is proved otherwise.

(some projects or launches are so exciting and “neat” that we want to be involved just for that reason –  we may lower our rates to demonstrate our support for “neat things” just because we can and want to, but any rate modification is done after we fully understand the project)

With us or anyone else: Being prepared for the conversation is important.

We inspire and enforce confidence.   Creativity and a little common sense goes a long way and we’ve built a business around it.

What’s your business?

Very best & thanks,
Mark Mahar