Advisor for hire. What’s your reaction?

An advisor reached out to me about helping me with my company for a rate (I see no issue here). In speaking to this Advisor I found out that they’re advising a lot of companies – to the point that it seemed like way too much (i.e 20). Is this standard?

Additionally, I’ve spoken to some mutual connections on LinkedIn as well as requested and spoken to the references that were provided from the Advisor. Of the references and mutual connections, one had negative information, one had tangible quantitative facts on what this Advisor brought to the table and two had qualitative progress they were happy with.

This agreement would include no equity, only an hourly rate, so the risk is small but I’d like to pose it to the group for some initial thoughts on what I’ve found? Also it’s good to note that this Advisor reached out to me, somewhat sales-like, which I didn’t anticipate and throws me off.


  • Paid advisor to 20+ companies reminds me of a saying we have here in Texas: “Big hat, no cattle.”

    Most worthwhile advisors are doing something besides advising.

  • Paid advisor/ especially hourly = consultant. You realize you can get advice for free from many people, then pick the one you click well with and formally sign them for very little equity (0.2-.5%). …Assuming you actually need one now.

    Why did this adviser reach out and how did they select you? How aligned are they (per skills, industry, achievements etc) with your company? On the list of short term problems and mid to longterm goals, what can they concretely solve for your startup (that you aren’t already addressing or have a plan for)?

    You’re welcome and you don’t have to pay this consultant. 😉

    • If you are connected with the right people in your market you should be able to get introductions to top notch advisors who will likely serve as future investors. A good advisor should be (1) in demand (2) well-connected; you want more than advice you want a door opener and advocate (3) accredited – so they can participate in any future rounds

  • Help with your company? At an hourly rate? There are dozens of functions in a company. What is he going to help you with? Specifically? growth? marketing? financial restructuring? mergers and acquisitions? sales?

    I mean, to pay someone per hour can be incredibly expensive without first having a clear picture, timeline and scope of work. To be honest, I don’t think I would ever pay a consultant by the hour. I’d rather have a concrete scope of work, timeline and exact cost.

    Like, our company http://iPivot.co specializes in business growth via crowdfunding, but from day one you know the steps, the cost and timeline of each step. I would most definitively be very suspicious of anyone wanting to charge me by the hour.

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