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I think this is a very interesting question and worth debating. The problem with startup equity is that the chance of a payout is extremely small. I've also won
by b20000 4y ago
I think this is a very interesting question and worth debating. The problem with startup equity is that the chance of a payout is extremely small. I've also wondered, if you switch jobs 10 times, and pick up a slice of equity each time, what are your chances of a life-altering exit? And joining a FAANG at a later stage means you won't get a huge payout if you create something valuable. Your equity might just appreciate and if you are lucky maybe you'll get a refresher.
In contrast, in the movie industry, you don't have "equity" that can vaporize or become worth nothing overnight. You share in the revenue. You know with a higher likelihood whether the movie will work or not. So this increases the chances of getting a payout and this payout could potentially last decades. Look at major 80s movies from which people are still making good money.
@tgflynn you are incorrect that a movie or other artistic work only requires a few people. Movie productions require very large teams and these people all need to get paid and get a revenue share. It's also heavily unionized in contrast to the situation with our software industry. You are also incorrect that most people are employees in the film industry.
- tgflynn 4y agoI didn't mean that movies don't require large teams, I used that as an example that does look a little more like a software project. Are you sure that everyone who works on a movie gets royalties and not just a salary while they are employed ?
- b20000 4y agoCamera operators and lighting people probably are just paid by the hour. I'm not an expert, so I'm going by what I've heard left and right from industry people. But, anyone who writes a script, acts in the movie (and is not an extra somewhere in the background), works on the sound effects or composes the music, very likely walks home with a rev share, and possible also with a chunk of money up front. Another data point - someone recently told me they got 120K up front for a few minutes of singing in a commercial which airs on TV.