What is the typical stock only compensation for a sales position in an internet start-up?

I am considering working for a internet start up in the Spring and I have been offered stock only as compensation until the "Angel" round or funding is completed which won't be until late December. Is this typical? Has anyone else worked for an internet start-up that offered only stock options in the beginning? Anyone have any guidance where I can get information on whether or not the compensation being offered is fair? Thanks in advance!!!|||It's typically not a good sign. Stock (or equity) financing is the most expensive to finance a company. This is because of the opportunity cost associated with the stock is high. It's a desperate move.





Obviously this is done because the company is not generating enough cash to pay out its employees (This is another bad sign). I'm not sure how many employees the company has, but the more it's paying out in stock the more the stock is being diluted and the more control the owners are loosing. This was typical of internet start-ups in the 90's when investors thought internet companies could do no wrong.


http://www.youtube.com/watch?v=hyM3HVdH1鈥?/a>





There is also the possibility that the Angel investor backs out or changes his or her mind. If I understand your time line right, the company will not secure financing until December 2010. That is a long time for a company that cannot afford to pay its employees.





That being said, it has worked out for some people. It's risky, but if it works out it has the potential to reward those who were there earning stock. However, this reward may or may not be significant. Just know what your getting into. Can you afford to work without getting paid. How much will it effect you if the company were to go belly up. If that is a risk that you cannot afford, I do not recommend it.





Also, take a look at their business. Do you think its got a shot? Do you believe in the technology? Are there other companies doing the same thing? If so, how are they doing?





Hope that shed some light on the situation. Best of luck to you.