Building a Successful Company: Equity Allocation and User Reviews

Building a Successful Company: Equity Allocation and User Reviews

Introduction:

When it comes to building a successful company, there are various factors that need to be considered, including equity allocation for key employees and how to effectively ask users to review your app. In this article, we will delve into these two important aspects and explore the best practices for each.

Equity Allocation for Key Employees:

Deciding how much equity to allocate to key employees can be a daunting task. According to James Currier, a managing partner at NFX and a seasoned entrepreneur, after a seed round, it is recommended to have an employee pool of around 10% to 12%. However, the exact percentage may vary depending on the role and level of experience.

For instance, a senior engineer is often granted as much as 1% of the company, while an experienced business development employee typically receives a .35% cut. Mid-level engineers can expect .45% equity, whereas junior engineers and those in marketing or design usually receive .15% or .05% respectively.

It is important to note that longer vesting schedules are becoming more common to retain talented individuals. Previously, employees had up to 90 days to exercise their options after leaving a company. However, companies are now extending this period to ensure that employees do not end up with nothing.

Incorporating Unique Ideas:

While the guidelines mentioned above provide a general framework, it is essential to tailor equity allocation to the specific needs and goals of your company. Consider the value each employee brings, their level of expertise, and the potential impact they can have on the company's growth. By customizing equity allocation, you can create a fair and motivating environment for your key employees.

Asking Users to Review Your App:

App ratings play a crucial role in determining search results and top chart rankings in the App Store. However, it is vital to approach users for reviews in a thoughtful and non-intrusive manner. Annoying users or begging for ratings can have a negative impact on your app's reputation.

To effectively ask users for reviews, consider the following strategies:

• 1. Build a Great App: Before seeking reviews, ensure that your app provides a seamless and enjoyable user experience. Users are more likely to leave positive reviews if they have a positive overall impression of the app.

• 2. Timing Matters: Avoid interrupting users' experiences or asking for a rating after a crash. Instead, wait for a likely moment of constructive feedback or a positive interaction with the app. For example, you can prompt users to rate the app after they have opened it at least 10 times over the course of 3 distinct days.

• 3. Non-Intrusive Placement: Rather than using pop-ups that require immediate interaction, consider integrating the rating feature seamlessly within your app. This allows users to scroll past it without feeling pressured, while still being aware of the option to rate the app.

Conclusion:

Equity allocation and user reviews are vital components of building a successful company. By carefully considering the equity percentage for key employees and implementing effective strategies for app reviews, you can create a positive and motivating work environment while also improving your app's reputation.

Actionable Advice:

• 1. Conduct a thorough evaluation of each key employee's value and potential impact when determining equity allocation.

• 2. Prioritize user experience and build a great app before asking for reviews.

• 3. Implement non-intrusive and well-timed prompts for app ratings to avoid annoying users.

Remember, the success of your company depends on attracting and retaining talented employees and cultivating a satisfied user base. By implementing these best practices, you can enhance both aspects and set your company on the path to success.