Hey there, Tim here.
Let's talk about something most experts, agencies, and consultants secretly want but rarely say out loud:
Equity.
Not a bonus. Not a rev share on some tiny side campaign. Actual ownership in a business that your brain helps grow.
The problem is most people want equity the same way a kid wants dessert.
"I showed up. I worked hard. Where's my slice?"
That approach misses the entire point.
Rule 1: You do not deserve equity
Here is the hard truth:
You do not deserve equity just because you are good at your craft.
Equity is not a tip for effort. Equity is a reward for creating asset value.
If your involvement does not realistically increase the value of the company in a meaningful way over the next few years, then equity is a bad deal for everyone.
Good questions to ask yourself:
- Can I reasonably help this business grow 5x over the next 3 years
- Is what I do mission critical to that growth
- Would the founder still think about my work in 5 years when they look back at why the company is valuable
If the honest answer is no, then you should take the fee and deliver great work.
Rule 2: Be a growth driver, not a cost center
When Coudal Partners met Aaron Draplin, they could have handled things the typical agency way. Draplin had this obsessive love for old agricultural memo books, those little pocket notebooks farmers used to carry around. He had been collecting them for years and started designing his own versions inspired by that look and feel.
Coudal could have said, "Cool project, let us slap our logo on the back and bill you for design hours." They could have treated it like any other client engagement. Invoice sent, deliverables provided, relationship over.
Instead, they saw something bigger. They saw the potential for an actual product, an actual brand. So they partnered. They pooled Coudal's marketing and production expertise with Draplin's design and obsession, and they formed Field Notes as a separate venture.
That shift changed everything. From "we made a thing for a client" to "we own the thing with the creator." From paid project to shared equity in a real brand.
They stopped being a cost center and became a growth driver instead.
Here is what growth drivers do differently:
- They talk in outcomes, not deliverables.
- They think in asset value, not monthly retainers.
- They care about the whole machine.
Coudal understood this. They were not getting paid for deliverables. They were building an asset. That mindset is what you should aim for if you want equity.
Rule 3: Only pitch equity when your reputation can carry it
Equity conversations get easier when your reputation walks in the room before you do.
That might look like:
- Case studies with real numbers
- A book or a clear framework that explains how you think
- A podcast, newsletter, or content that proves you understand business, not just your skill
When someone already sees you as "the person who helps companies like mine grow," the idea of equity stops feeling like a grab. The conversation becomes a logical structure.
If they come to you expecting a $50,000 project and you pitch equity on the second call, you look greedy.
If they come to you because they know you help companies add millions in value, equity becomes a tool you both can use.
Rule 4: Tie equity to clear value and clear effort
Do not just say "I want 10 percent."
Tie your equity to:
- Current valuation
- Expected value you intend to help create
- Time frame
- Your actual involvement
Simple example:
- Company is worth $10M today
- You want $500K worth of equity that vests over 5 years
- That equals about 5 percent
- Your job is to help them grow to $50M
- Your stake could be worth $2.5M if you pull it off
Now the founder can see the trade. You are asking for a partnership, not a gift.
The pitch becomes: "I will help turn this from 10M to 50M. In exchange, I want a slice that becomes worth far more later than what you give up today."
Rule 5: Expect friction and be ok with "no"
Most founders do not want another partner. Especially not one they just met on Zoom last week.
So expect:
- People who love your work but want fee only
- People who say yes to a test project before talking equity
- People who need time to trust you
That response is completely normal. In my own work, most clients pay sizable fees and nothing more. Only a small number turn into equity deals.
Those are the ones where:
- I believe in the founder
- I know my involvement can change the trajectory
- We both feel good about being tied together for years
If you try to force equity on the wrong people, you burn trust and lose business.
How to start moving toward equity
A simple path you can use:
- Get exceptional at producing real business outcomes
- Document your thinking in a clear framework
- Change how you talk to prospects
- Start with high fee, low equity hybrids
- Let your marketing pre-frame equity as an option
You only need a few good deals that you can genuinely help turn into something big and you love working on to significantly grow your net worth.
Talk soon,
Tim
PS. If you haven't guessed, this week's episode is all about getting equity and it may be my personal favorite so far. WATCH or LISTEN today.
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