COMMENTS
And because he is very very expensive :)
you're absolutely right.
great insight, Dharmesh
Dharmesh, I have seen this exact problem time and time again in my startup consulting. These executives try to bring in the culture, spending habits, and mindset of a company that is much larger. All they do is frustrate rather than motivate, waisting much of a startup's precious budget on things that don't translate to true impact.
The most successful startups are ones that hire for where they want to be in 1-2 years, not 5-10 years. Often, these people are startup-minded and know how to take a startup further from where it is today.
Sometimes they may be able to grow and learn with the company, but often they reach their limit and go to the next startup that needs help.
Great post!
I am going to play devil's advocate. Let's say I do hire him for my startup.
It is a technology startup, so it is safe to assume the circumstances are similar...he started Squidoo and yoyodyne...so I would hire him based on his previous success.
As for number two, I know you can find passionate people who have been successful before. Some people can be motivated by money even when they already have a sizeable bank account. I think this part would be dependent on the idea as Seth probably doesn't get excited about everything. For the sake of argument, let's say he loves what we are doing and shows great passion during the interview.
Number 3 relates to value. You are assuming someone is overpaying when they offer 250k. If Seth has all the connections to people that my company needs to get in front of, a history of making good deals, and is a flat out rainmaker, I'll pay 250k. It would be worth it. If your startup is a social network for rock climbers in Estonia, then it would not be worth it.
Number four assumes you are hiring someone from a monolith (like Oracle) to a 3 person startup. Obviously, any good executive is going to be aware of the lack of resources for an early stage startup. I would fault the entrepreneur for hiring someone like this. There must be talk during the interview process for what Seth would require. Given his startup experience, I know he doesn't need a lot of money, but knows what to do with it once we get it.
In conclusing, I think startups can totally hire people of Seth Godin's calibre. You might search for a while, but there will be someone out there that will accept the terms you offer. The entrepreneur just has to find them.
Almost forgot, finding the next Seth Godin could be a tremendous gamble for the entrepreneur and an even more difficult task.
Thought provoking post...
Josh: I can't argue with anything your're saying:
1. Seth does indeed have a startup background (so his experience is relevant).
2. Assuming you could hire him he'd definitely be worth the $250k (I had just picked that number out of semi-thin air).
3. There are indeed people that are motivated by money even when they don't need to be.
But, I'm still going to content that it's really, really hard to get someone of Seth's caliber (in terms of an operating/management role at a startup). He's got his own ideas and his own startups which I'm sure he doesn't get to spend as much time on as he'd like. You might get someone like him as an advisor or board member, but probably not in an operating role (i.e. in the day-to-day activities of the company).
Regardless, good points.
Something you didn't mention was the willingness to look at things in a new way and go against conventional wisdom. Seth is a marketing genius, but what made him that way was that his ideas were new, fresh, and valuable. Someday someone else will have some other ideas that replace him. It might be in 2 years, it might be in 20 years, or maybe 200 years. But it will happen.
To be truly great and become a HUGE company, most startups need the audacity to question the current world order and think differently. I don't know Seth personally (yet?) so I can't speak for him in particular, but most people of that caliber just go on pitching their existing ideas, rather than re-thinking them and coming up with something totally different and equally remarkable. But that willingness to throw permission marketing out the door might just be what a bold startup needs, and Seth (or a Seth-like person) might not be the guy to do it.
PS - Just the possible chance that this article might remotely imply that I have a 0.1% chance of being the next Seth Godin is a tremendous compliment. :)
Excellent points! The next Seth Godin is waiting in the woodwork for an opportunity to shine. It's gonna be the hungry guy with big new ideas, but currently lacks the venue to put those ideas to good use...just wait.
Now the next post should be, "How to Find the Next Seth Godin"
or for that matter, anyone with important position in the startup
"Finding or Creating the Next Seth Godin" is a more important topic. Using the old model of traditional marketing trying to capture visibility and using the "who knows who" model is dated and almost useless. Look for a person who understands Online or Web2.0 Marketing or is willing to quickly learn and apply. If your current marketing "leader" is living in the 80's or 90's, find someone new. There are several great thought leaders on online marketing such as David Meerman Scott who can educate and invigorate a company and take them directly to buyers without the pain and anguish or using baskets of cash.
How to Find next Seth Godin?
in one of his books (maybe in more) it tells exactly how to find someone like that
It comes at a cost of "finding" though
Sometimes they may be able to grow and learn with the company, but often they reach their limit and go to the next startup that needs help.
Great post!