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I've identified a veteran CTO of several successful web and tech companies who I'd like to be the first Advisor to my web-based startup. He could help me with operations, as well as business strategy. He has had extensive experience as an advisor to other startups.

From reading other responses on this site, it's not clear to me what kind of equity I should offer him. One response said 0.1% for about 10 hrs of phone calls per quarter. Is this the minimum? What's a reasonable max, and is there an average? And, what are the negotiation points?

Thanks!

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Everything is negotiable but if you don't have a good relationship. he won't be much use as an advisor.

Whether you know this guy already for not, take him out for lunch, start building a relationship and try to get him interested in your idea. If he's interested and has the right experience, he'll be a great advisor. You can later sit down and have a conversation about terms.

If he's not into your idea, it doesn't really matter what terms you try to negotiate, you probably won't get what you need from him.

In summary, start with the relationship and his interest and what he can contribute (if he is willing) Once you have cleared this hurdle, then worry about terms.

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Great points about sitting down first. Heck the guy may give some valuable advice out for free. – John Bogrand Nov 4 '10 at 14:43
Thanks for the comments. I left out that I have known him for a while, and he is very interested in the idea. – user4979 Nov 5 '10 at 17:44
Then absolutely sit down with him and ask for his advice. Then ask him what you can do for him. His answer may surprise you. – Susan Jones Nov 9 '10 at 3:33

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