Startup CEO Says ‘Trust Issues’ — Translation: We Don’t Want to Pay You

A few days ago, an old friend reached out to me about a project he was working on. At first glance, it seemed exciting, so, I took the bait. We talked, and he asked if I’d be interested in helping out. I thought, “Why not?” The idea had potential, and I was curious to see if the leadership team and I would click. Fast forward a couple of calls, and things were looking good. The conversation was flowing, everyone seemed pumped. And then we got to the topic of money. That’s when things got... let’s just say interesting.

Final Meeting to Discuss Money

In that meeting, I quickly noticed the company had more ambition than resources: no solid engineers, no funding, and a proof of concept that was still just a concept. Oh, and did I mention the leadership team had enough disagreements brewing to make a reality show out of it? But the real gem came when the CEO, with absolute sincerity, told me he doesn’t trust people because he’s been scammed before. Gotta love the honesty, right?

Call me optimistic or foolish — I was still intrigued. I mean, this idea had some real potential, even if it was a little rough around the edges. So, in a moment of “let’s see where this goes,” I agreed to a 50% pay cut, ready to play the long game for some equity and hoping this might just lead somewhere big.

The CEO laid out his grand vision, what they were building, the current state of the project, and what they needed. Then he got to the money talk. I asked if you have any funding or paying from your own pocket. He nodded to the latter. So, I said, “Look, since you’ve already mentioned you don’t really trust me yet, don’t worry about paying me now. We’ll talk salary, equity, and all that once we figure out the project’s scope, timeline, operations, and marketing. I can even help you secure funding, get the best valuation, and make sure your product is reliable from top to bottom.” (PS — I have a team to help startups with all these things).

I made it clear: "this" is my current pay, but I’m willing to take up to a 50% cut—if I get a decent chunk of equity. He paused, then dropped the bomb: equity wasn’t on the table. Instead, he wanted me to throw out a number for the salary first.

So, I said, “If I set a fixed salary now, what’s my incentive to fight for your highest possible funding and valuation? You’re not offering equity, so what’s in it for me to hustle like crazy? I need a reason to go all in, right?”

After the Meeting

We talked more about the product after that and wrapped up the meeting. A couple of hours later, I called my friend out of curiosity to ask what the status update was. He hesitated before saying, “Well, they’re not sure if they want to move forward.” I asked why, and he said, “It’s about money. The CEO thinks you’re charging too much. You're charging 20x more than our interns. How do we justify that? If you're charging 20x, we need to see 20x the output.”

I couldn’t help but laugh. “Are you serious? Look at your current team. You’ve all been at this for 8–10 months, and what you’ve built so far could be done by any experienced engineer in 3-4 weeks. And let’s not pretend your system is some revolutionary design that no one’s seen before. It’s the problem you’re trying to solve that I’m interested in.”.

I threw in a metaphor to get the point. “Look, you can buy a $10 badminton racket or a $100 one. The $100 racket isn’t going to hit 10x harder just because it costs 10x more. What it will do is give you better balance, reliability, durability, and overall performance. That’s what I bring to the table. You’re not just paying me for writing the code; you’re paying for expertise, speed, and the assurance that things won’t fall apart at the worst possible time.”

A Final Counter Offer

To address the CEO’s trust issues, I offered a compromise. “If he’s hesitant about equity, that’s fine. We can reserve it for this round of funding. I’ll work with you for the next 3–4 years, help you get to the next round of funding, and if that happens, then give me the equity. If not, I’ll settle for just the salary I’m earning.”

Even after all that back-and-forth, nothing concrete came out of it. They circled back with a “generous” offer: a 60-70% pay cut and no equity—ever.

It was like they were asking me to trade in my car for a bicycle and be grateful for the fresh air.

So, with a smile, I politely declined.

Sometimes, you’ve got to walk away from the table to remind folks that you know your worth. And, if they find an intern who can work miracles for peanuts, more power to them!

The Cost of Quality

And here’s the thing: if you want high-caliber talent, don’t be surprised when you need to pay for it. Talent isn’t an expense; it’s an investment. If you’re shopping on a budget, don’t complain when you only get budget results. Talent isn’t something you bargain shop for; it’s what sets you apart and helps you grow.

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