As a freelancer (consultant), no thanks. This looks like yet another platform that commoditizes freelancers (think Upwork). The belittling name "gigster" doesn't help.
If you're a freelancer/consultant who wants equity, ask for it. Some companies are willing to give non-qualified options (the only choice, really) after you've built up a relationship and if you're making a significant contribution to the company.
Also, I've read the page top-to-bottom and still not fully clear on what's happening here. Highly suggest running this by non-insiders and rephrasing the messaging until it's easier to understand.
The difference being Gigster is offering a portfolio. Granted the "everyone shares in 1%" part makes it economically immaterial.
What's needed is a collaborative investment management platform for freelancers. For example. twenty freelancers could make an agreement pursuant to which they each (a) reasonably demand equity alongside pay for their work, (b) contribute all equity they earn in exchange for services to a fund co-controlled by the others and (c) share in the fund either equally or proportionally to their contributions/the performance of their contributions (e.g. contributor gets 20% and the remaining 19 split the 80%). This is a healthier financial structure than having bigger, but more concentrated, stakes ceteris paribus.
FYI, Gigster is absolutely not Upwork or Upwork-like, this is amusing misconception that all people have about Gigster.
If you're a freelancer asking for equity, you'll give up some of your payment. Gigster is not saying AFAIK: we cut some of your pay in exchange for some equity.
Again, AFAIK, Gigster is clearly saying: The more you make customers happy and engaged in your gigs, the more you will earn equity from companies of the Gigster Fund.
(I speak as a Gigster which was also using Upwork before, so I'm biased but I believe in Gigster and I am happy to tell people about it.)
For the record, they are clearly not saying anything in a clear manner here. It's all pretty crappy marketing speak (coming from a marketer...and a freelancer) to support what is 100% a PR ploy.
I understand what you mean. Sorry for not being sufficiently clear.
While I understand your point of view, I will not try to argue over whether this is a PR ploy or not.
This announcement is also a surprise meant for us, Gigsters.
And this surprise was a success because I have experienced that when Gigster says they want to do something, they will.
Gigster said they want our happiness, naïve or not, I believe in it and Gigster granted us a real opportunity, I feel happier with Gigster as a freelancer.
So, what I am trying to say?
Basically, a lot of people says that Gigster is like Upwork, that this announcement is not clear, this is marketing.
Please, just do not immediately judge Gigster with the "Upwork" hat, there is a lot of misconceptions about Gigster. :)
No offense, but I don't think you are not really doing a favor to Gigster with these posts, they seems to be written by someone under a heavy dose of kool-aid.
If you want to help them I suggest you stick to the facts :)
I'm actually not judging Gigster or Upwork. I have had amazing experiences with Upwork, but that's mostly because I make it work for me. I don't know anything about Gigster so don't hold any thoughts on the company or service as a whole. But yes, this whole "equity" thing is a PR ploy, not many ways to spin it otherwise. The platform may be wonderful, but this specific move falls short of being valuable.
Upwork is a race to the bottom, the cheapest developer gets the project, at the cost... of the quality and experience.
Gigster is more realistic, I don't know how much I can talk about this.
We are working with a team of fellow Gigsters, and we work together to estimate fairly the project. We are obviously against the race to the bottom, and we desire cool or interesting projects.
Fairly means: Developer is happy with the quote, the timeline / timeframe and the scope. Product Manager is ready to help his team to achieve this project with a happy customer and a happy team.
Of course, we do have problems sometimes. But Gigster happiness, that means: Product Managers, Developers and Designers is crucial and I feel it personally.
Finally, I will say it bluntly: I am a developer, and I am not paid 40 $ / hour to produce a stupid idea which will change the world.
If you want more information, I think that a Gigster employee can explain more about his experience.
I feel like that the guys which handles the project in Upwork are not real developers.
I said: "I am a developer", because I work on fascinating problem, I practice problem solving everyday, we do not do "web scale" (TM) indeed ; but I find pleasure in my work, compared to what Upwork offered me.
> Also, do you see your current hourly as sending a high, middle, or low end signal to clients?
It is rare that developers have direct contact with clients, so I am not exactly sure about what clients feels about our hourly rate. A Product Manager might be more insightful about this question.
It looks like Gigster will invest (money, time?) in some companies from a predetermined fund, not Gigster itself. In turn, they will share 1% of their fund equity with all Gigster developers who were active at the time, paying out when a fund company or Gigster liquidity event occurs. They will allocate rights to returns to active Gigster developers over a 1 to 5 year period.
It looks like, as a Gigster developer, you would get 1%/total active Gigster developers. If there were 500 Gigster developers over that 1 to 5 year period, you'd get 1%/500 = 0.002% of a liquidity event depending on Gigster's weighting mechanism. If Gigster's equity stake was 20% in a company that exited for $100 million, you'd receive maybe $40,000 depending on how Gigster determines your weighted percentage.
It's not really even the same league as a 401k or pension, contrary to what the page says.
Calling it equity is a bit confusing. On the page it states at the top:
"Gigster Fund provides our freelancers with access to equity from Gigster and select companies in our client portfolio."
At the bottom it states with regards to owning equity:
"No. Direct equity ownership or indirect ownership through a limited partnership has complex tax & legal implications, and the SEC limits the number of shareholders a corporation may have which would make direct ownership impossible after a certain number of freelancers".
And
"No. Direct equity ownership or indirect ownership through a limited partnership has complex tax and legal implications. In the United States, for example, Gigsters would be required by law to be accredited investors."
Does gigster have anything real at all? There are no gigs at all listed on their site... just a few full time jobs in SF, plus things for working on gigster itself. Seems like it might be a lean startup trick of painting the sky blue to try and build both sides of a marketplace.
I imagine it's the same companies hiring freelancers off Upwork and other such sites. They're looking for the cheapest possible labor, and quality comes second.
I must be sheltered in my corporate job, but I can't imagine companies shelling out half a years programming wages for yet another messaging app. I can't think of the use case for a one off messaging app that isn't fulfilled by the plethora of existing options.
1. Their app demo pricing is a guideline for the cost of a typical app in that space. People aren't all going to Gigster for the next Snapchat or Yelp clone. They have specific problems and Gigster makes specific solutions.
2. I've also worked in a corporate job, and 40-50k is not a lot of money. We spend that sort of money on software license requests without blinking. 50k for a fully baked, semi-functionally software project is a bargain.
> This allows our freelancers to receive tangible rewards for their hard work building incredible software, and helps them prepare for the future.
Wouldn't simplify paying a freelancer be a tangible reward? And if you're not paying them then they're not really freelancers, they're either interns or suckers (or both).
> Will every Gigster Fund company yield a successful return?
No. Although some startup companies yield extraordinary financial returns, many fail.
Ha! Great way to spin "The majority of this will be worthless ... but you buy Powerball tickets too right?"
This is in addition to normal pay, you understand that right? Your comments about equity can be applied to anyone working for any startup, so what's your point?
I did some work for gigster a few months ago just to try it out. It was a breath of fresh air compared to upwork/elance/etc. Average pay for engineers was around $100/hr.
This isn't an all or nothing kind of deal. It's an extra incentive for gigster freelancers to do amazing work (besides the great project estimates / rates they have).
> This isn't an all or nothing kind of deal. It's an extra incentive for gigster freelancers to do amazing work (besides the great project estimates / rates they have).
Maybe not all or nothing but this would end up just like a startup offering equity as compensation. They'd argue that they can pay you less (vs. straight cash for services) because you've got this equity piece as well.
Agreed. As a freelancer that works with Gigster I don't see this as a major source of revenue in my future (most likely a way to generate good PR as another poster mentioned). If they ever use this as leverage to pay less per project then I'm sure a lot of the best developers on the platform will move elsewhere.
Giving people a very small stake in their work adds much greater inventive than cost. That alone is a good idea (See Starbucks). Emotions trump math - even for programmers. I expect the confusing terms are intenional to make the math harder.
But... this is the same company that was giving out work quotes in less than 10 minutes. I expect gigsters existence is subsidized by VC investment and it will be unable to succeed long term. I'm not expecting good things for anyone involved.
If you're a freelancer/consultant who wants equity, ask for it. Some companies are willing to give non-qualified options (the only choice, really) after you've built up a relationship and if you're making a significant contribution to the company.
Also, I've read the page top-to-bottom and still not fully clear on what's happening here. Highly suggest running this by non-insiders and rephrasing the messaging until it's easier to understand.