Compensation Diversity | The Successful Non-technical Leader

12/20/22

This article continues the discussion on tips for non-technical founders. You can check out all the tips in our free Guide to Tech Projects for Non-technical Leaders.

The five most common ways to compensate developers are: equity only, low salary + equity, salary, high hourly (fractional gigs), fixed bid.

The option you choose is going to be based on your budget. 

If you have no budget, then your only option is to offer equity. This option sounds good on paper but you may run into legal issues about wage laws. In addition, it will drastically slow your speed to market because the developer will probably have to hold a day job and work on your project on the side. It also drastically lowers the probability that you’ll find help.

If you have a large budget, the conventional wisdom is low salary + equity, but I found that companies can get much further by reserving salary for resource developers and bringing in the lead people on a fractional basis. This is where it is good to find that amazing technicolor dream coder and give him some golden handcuffs with salary + equity. 

If you have a small budget, your best bet is going to be fractional all the way. You can still build a team (surprisingly well in this gig economy) while only engaging the exact resource you need for a given task. You’ll pay a higher hourly rate, but you may actually save money by using the least expensive resource for any given task.

The biggest mistake I see startups make is focusing on only one compensation strategy for the whole team. I recommend what I call compensation diversity because the compensation models attract a very high diversity of thought on how work should be done. They aren’t always in line with each other, and this tension leads to great decisions.

If you found this article helpful, check out all our tips and tricks by downloading our free Guide to Tech Projects for Non-technical Founders.

If you need hands on help with your project, Buink has years of experience managing and completing technical projects on time, under budget, and with a high level of quality. Contact Buink today.

About The Author

Ben currently works as a senior developer and technical business consultant outside of Boulder, Colorado.

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About Buink

Buink Web Development is a development shop founded in 2009 by Ben Buie. For years, Ben built and modified web assets for clients in Utah. In 2011, he moved the company to Colorado and in 2015 he started taking on new clients full-time.

Buink’s Core Values:

  • Cost effective technology (with business strategy in mind)
  • Eloquent, maintainable code
  • Responsive and transparent communication

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Dru M.
Dru M.
15:41 25 Mar 21
Ben’s a super responsive, thoughtful, sharp and all around great guy to work with. Excellent with his trade. I’d recommend him to anyone. Thanks Ben!
Seth L.
Seth L.
21:36 29 Jun 19
Ben and team are incredible to work with. They are reliable and proficient. I'd highly recommend hiring them for web development work. SethVOLTAGE
Craig A.
Craig A.
20:50 18 Jun 19
It was a pleasure to work with Ben and his team. It is rare to find such attention to high standards of coding and devops.
Lexi S.
Lexi S.
15:36 18 Jun 19
Grateful to have Ben and his team as such a capable, reliable partner for completing client work!
Tom S.
Tom S.
13:18 14 Jun 19
I reached out to Buink after finding Ben’s name in a local developer/consultant listing in 2017, and I have to say, it has been an absolute pleasure to work with Buink. Ben consistently understands not just the development task laid in front of him but the business application behind the task. I’ve... never felt more comfortable with a development team than I do with Buink. I truly feel Ben and his team are integral partners in the success of my business.read more
Marilyn F.
Marilyn F.
22:47 13 May 19
I could not recommend Buink Web Development more highly. Ben and his team have recently developed a budgeting app for me (both web and IOS). I have had the opportunity of working with them for over a year and I am extremely happy with the results.I would say that the biggest plus for me is that I... trust Ben completely. From the very first, Ben has helped me make decisions that were in the best interest of my company. I have never felt like he is taking advantage of me. Ben does his best to keep the whole process very open and upfront. I have really appreciated that.I tell people all the time that I love my developers. And I do. I'm very happy that I chose to use Buink to develop my apps. It was the best business decision I could have made.If you are looking for someone to develop a website or app, I strongly suggest choosing Buink Web Development. They are fantastic!Marilyn Ference, President, Defend Your Money, LLCread more
James Landon B.
James Landon B.
01:33 28 Aug 18
Great company to help with all your web design needs!
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