Sweat Equity

Thanks for being a part of this! You should keep reading via RSS or Email or follow me @conrey.

Definition from Wikipedia:

Sweat equity is a term used to describe the contribution made to a project by people who contribute their time and effort. It can be contrasted with financial equity which is the money contributed towards the project. It is used to refer to a form of compensation by businesses to their owners or employees. The term is sometimes used in partnership agreements where one or more of the partners contributes no financial capital. In the case of a business startup, employees might, upon incorporation, receive stock or stock options in return for working for below-market salaries (or in some cases no salary at all).

If you are committed to building something, be it a company, a community, or yourself – you’re going to be putting in long hours with little direct (monetary) benefit. Why would you do this? If you believe that the outcome is worth it, then you’ll do this. Why do most lottery winners end up bankrupt? Because they didn’t earn the money so they don’t know what to do with it. Remember that “overnight” success usually means years of work. Little is going to be just given to you, you’re going to have to earn most of it.

The successful people you look up to put in their blood, sweat, and time to get where they are today. They spent long hours at little to no pay to make their vision happen.

What are you putting your sweat equity in to and how are you making sure that it pays off?

Tags:

This entry was posted on Monday, April 27th, 2009 at 5:04 pm and is filed under Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Sweat Equity”

  1. Cameron Westland Says:

    Chris. This is exactly how we just hired our third partner @jkozuch. Man that was hard to type on my iPhone!

Leave a Reply

Get Adobe Flash playerPlugin by wpburn.com wordpress themes