Okay,

According to our records, it appears that we are slowing losing our number 1 programmer. We are in the middle of developing a MMMSE, which we need done ASAP. So, anybody willing to work for free? Just to let you know, we are a meta search engine, the MMMSE is what we are working on, our "next step up," which will make our search engine the first of its kind on the web. So, if interested, please contact: p-ower@zygit.com

Thanks,

Pete Ower

<G> What a sales pitch!

>> anybody willing to work for free?

Might as well have said "Anyone willing to be a slave, and make me rich while your kids starve?" !

You might want to change the offer a little, to reflect some sort of cooperative association or incentives.

Usually, in this sort of thing, some sort of partnership, co ownership, or other compensation in lieu of cash (and the very out of favor stock options) is offered.



PUGDOG®
PUGDOG® Enterprises, Inc.
FAQ: http://postcards.com/FAQ

Ok,

I see your point. How about company ownership? You will get to own part of Zygit. Any money we make, you get what ever percent you own in Zygit to that amount. Sound good?

Pete

While I've got you on the stand here, what about Health Insurance, company car, a key to the executive washroom, etc.??

Really -- you need to think this out. You don't want to give away the farm, yet no one wants to work for free.

You need to come up with some sort of fair compensation for everyone.

PUGDOG®
PUGDOG® Enterprises, Inc.
FAQ: http://postcards.com/FAQ

Well,

We can really give you keys to our bathrooms and what not. We are a group of high school students working on our project to make ourselves money. Our number one programmer hacked into the school, so, we choose him as our main programmer. The rest of us are just regular people who like the internet. I started Zygit in 1997, which was called SSN Net then. But hey, I am one of the oldest in the group at 16. We can't give you a car, or money; that is why we are trying to give out portions of Zygit, me currently owning 100%.

Pete
CEO/President Zygit Networks.

Ok....

The plot thickens (ready for economics 101, cliff notes version?)

You need to decide about the potential of the company if it grows. Also, what sort of ownership you will keep, what sort you will divide up among the workers, and what part will be publically available.

Actually, at your age, a close corporation with all the partners owning a piece is probably the best idea. If you decide to go public, you'll get advice on how to do it. Why a corporation? PROTECTION! Many, many kinds of protection.

Once you do that, depending on where you incorporate, you'll have a certain amount of stock, which determines percentages in the company.

The way you give out ownership is by issuing stock.

So, if you have 3,000 shares of stock, each 1% of the company represents 30 shares, with 1501 being the controling interest. That leaves you potentially 1499 shares you'd be willing to use as incentives to people to work for you, and still maintain control of the company. In a "partnership" of say, 3 people, more likely you'll issue 1000 shares to each partner, then any further issuing comes from mutual agreement of the partners each giving up their shares.

I say this, because so many people have been burned, both honestly and dishonestly.

The only thing the company has of "value" is the software (maybe) and the domain name.

You need to determine ownership policies on that, and what happens to them if the company ceases to run. Which partners have options to buy them, and where the money from that sale goes.

You may think this is pretty complex, but you are asking someone to work to develop something that may have a commercial potential, and it could be taken away from them if they don't own it, or it could be "lost" if the company just folds up and disappers (it happens more than any other sort of problem).

You following along?

When you can't pay salaries, you need to think about what will someone want out of this. If I was that person, how would I look at the "opportunity".

There are people willing to program if they find it fun, and if there is a potential for getting something back on it. Nothing rips a person more than contributing to a "free" project, and getting cut out when the "owners" decide to sell. Been there, done that, could write the book.

PUGDOG®
PUGDOG® Enterprises, Inc.
FAQ: http://postcards.com/FAQ