Working with Advisors

A guide to bringing on an advisor: why you need one, what to offer, and how to structure the relationship so it actually pays off.

1
Why bring on an advisor?

It is important to bring on advisors to fill specific knowledge gaps rather than for generalist guidance. Before you reach out to anyone, get clear on which kind of help you need:

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Tactical
Hands-on help with a specific problem: hiring your first sales rep, navigating a compliance requirement, architecting a system for scale
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Strategic
Higher-level thinking on direction: go-to-market sequencing, fundraising positioning, building a category
2
How do you set the relationship up to succeed?

An advisor who isn't given a clear ask will be ineffective. Before you finalize anything, align on three things:

1
What specific problem do you need help with? Be narrow. "GTM for B2B SaaS selling into mid-market" gets you more than "sales"
2
How many hours per month do you actually need? Be realistic. Over-scoping leads to a disengaged advisor and over-granted equity
3
What format works for both of you? Standing calls, async review, warm intros, or on-call for specific moments
3
What can you offer as compensation?

Advisor compensation typically takes one of three forms. The right structure depends on your stage, the depth of involvement, and what the advisor values. At the early stage, lead with equity, which conserves cash and aligns the advisor with your long-term outcome. Reserve cash for narrowly scoped, project-style work.

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Equity
Most common early-stage. Options or shares on a vesting schedule tied to their commitment
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Cash
Best for well-scoped, time-bound engagements. Treat it like a consulting expense
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Equity + Cash
A hybrid that works when the time commitment is significant and ongoing
4
How much equity should you give?

Equity grants vary by your stage and the advisor's time commitment. 645 uses the following ranges as a baseline, assuming at least one hour per month on a four-year vesting schedule. Go higher for deeper commitments or highly specialized expertise, but don't over-grant for a name.

Typical Equity Grant by Stage
Stage Description Equity Range
Pre-Seed Idea through early product, pre-revenue 0.20% – 0.80%
Seed Early traction, initial customers, fundraising 0.25% – 1.00%
Series A Scaling with product-market fit established 0.25% – 1.00%

Ranges assume a minimum 1 hr/month commitment on a 4-year vesting schedule. Adjust upward for higher time commitments or specialized expertise.

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Always tie equity to time commitment. A 0.5% grant for one hour a month is very different from 0.5% for ten. Make both numbers explicit, and use a one-year cliff so a grant unwinds cleanly if the relationship doesn't work out.
5
What should the advisor agreement cover?

A formal advisor agreement protects both parties and sets clear expectations from the start. Put one in place for every advisor, even friends, and make sure the following are spelled out explicitly.

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Scope of work: what they're helping with and in what format (calls, intros, document reviews)
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Time commitment: hours per month, and whether that's a hard floor or best-effort
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Compensation terms: form of payment (equity, cash, or hybrid) and timing
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Equity grant & vesting: number of options, strike price, and vesting schedule (typically 4 years with a 1-year cliff)
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Confidentiality & IP: they'll be exposed to sensitive information, so the agreement should protect it
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Need a starting point? Use the 645 Advisor Agreement Template or the HubSpot Startup Advisor Agreement Template as a reference.