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CAB Compensation

When discussing compensation with members of a Customer Advisory Board (CAB), what models or approaches are most effective?

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Written by Claire Rosenfeld
Updated over 12 months ago

  • Alexander Shartsis: Generally you should not compensate your CAB for 1,000,000 reasons. They should be involved in your CAB because they care deeply about solving the problem you're working on, and perhaps because they want some exposure to early stage startup life. Not for direct personal financial gain.

  • Dan Oakes: This varies widely based on the level of participation and value they're adding. I've seen any of the following:

    • No compensation

    • Hourly cash compensation

    • Advisory shares

    • Discounts on your product for the first 2 years

    • Carve-out for the business to invest in your next fundraising round

  • Kyle Kopyl: It all depends on the conditions you are willing to offer. This could be salary, bonuses, consulting fees, travel expenses, and an option pool or performance-based equity. If this is an early stage, then 0.1% -0.5% with vesting.

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