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Why Your Cofounder/VP Sales Shouldn’t Get A Sales Commission In Your Early Stage Startup
“That sounds like double-dipping,” I said to “Al”, the CEO of a company I am working with. Al was describing to me his cofounder’s idea of getting paid a commission for using his network to refer customers to Al’s company.
I asked, “Isn’t that what we’re paying him for?”
“Yes it is,” Al said. “I feel the same way you do, but I just want to make sure.”
Your cofounders shouldn’t be worried about making a little extra money on the side.
There are some things that just don’t feel right for an early stage startup. Certainly near the top of the list is a cofounder trying to take extra profits in sales commission.
Al and I continued our conversation. Al suggested, “What about if I eliminated his equity and we changed him to being a consultant?”
“Then he wouldn’t be a long term fit for company,” I responded. “It strikes me we want cofounders that are fanatical about your mission.”
I felt bad for Al. It sucks when you realize that you have a cofounder that’s in it for the wrong reason.
