You run a mid-size marketing agency You normally charge a $10,000 a month retainer for your services. An internet company approaches you with an intriguing offer: $6,000 in cash plus stock in exchange for your agency's services. Should you accept?
With stock being the currency of choice for many dot coms, this scenario may sound familiar. If your agency is considering taking stock, stock options or warrants in exchange for services, following are some issues you should consider.
Do You Really Want To Be An Investor?
When your agency takes stock instead of cash in exchange for its services, it is really an investor in that internet company Along with that investment comes the accompanying risk. The more informed your agency is as an investor, the better you will be able to evaluate the risk.
