What Advisors Actually Provide
Most founders think advisors are primarily for introductions. They're more valuable in other ways:
| Value Type | Example | Impact |
|---|---|---|
| Pattern recognition | "I've seen this before — here's what happens next" | Prevents costly mistakes |
| Network access | Warm intro to a potential customer or investor | Compresses years into weeks |
| Credibility signal | Their name on your website | Easier fundraising, hiring, sales |
| Honest feedback | "Your pricing is wrong and here's why" | The truth your employees won't tell you |
| Accountability | "You said last month you'd do X — did you?" | Forces execution |
The 4 Types of Advisors You Need
| Type | What They Provide | When to Recruit |
|---|---|---|
| Domain expert | Deep knowledge of your industry | At founding |
| Growth advisor | Has scaled a similar business | After product-market fit |
| Technical advisor | Can evaluate your technical decisions | At founding if you're non-technical |
| Network connector | Knows everyone in your space | Always valuable |
A board of 3–4 advisors covering these types is more valuable than 10 advisors who overlap.
The Advisor Compensation Structure
Equity for Formal Advisors
Industry standard for advisor equity:
| Involvement | Equity (Standard) | Equity (Reduced if paying cash) |
|---|---|---|
| Light (1 call/quarter) | 0.1–0.25% | 0.05% |
| Standard (1 call/month) | 0.25–0.5% | 0.1–0.25% |
| Heavy (weekly involvement) | 0.5–1.0% | 0.25–0.5% |
Equity should vest over 1–2 years with a 3-month cliff. This ensures you only give equity to advisors who actually contribute.
Cash for Informal Advisors
Not every valuable relationship needs formal equity. For informal mentors:
- Cover their expenses when you meet
- Send a gift quarterly (₦20,000–₦50,000 worth)
- Feature them in your content (gives them visibility in your audience)
Finding the Right Advisors
Where to Find Them
| Source | Method | Quality |
|---|---|---|
| Your existing network | Who do you already know? | High (warm relationship) |
| Search for people who did your role at your stage | Medium-High | |
| Twitter/X | People you engage with regularly | Medium |
| Accelerators/incubators | YC, Techstars, local accelerator alumni | High |
| Events and conferences | Industry-specific conferences | Variable |
| Warm introductions | Ask your investors and existing advisors | High |
The Advisor Outreach Message
Subject: Advice request — [Your company, one sentence]
Hi [Name],
I've been following your work at [their company/on Twitter] for [time].
Your [specific insight/post/experience] was particularly relevant to
what I'm building.
I'm [your name], founder of [company]. We [one sentence description]
and we're at [stage] having [specific milestone].
I'm facing [specific challenge you're working on] and I'd value
30 minutes of your perspective given your experience with [relevant experience].
Happy to schedule at your convenience.
[Your name]Three things that make this work: specificity (they know you've done research), context (you're not wasting their time asking generic questions), and a small ask (30 minutes, not "be my advisor").
Running Advisor Relationships
The Monthly Update Email
Every advisor should receive a brief monthly update:
Subject: [Company] Monthly Update — [Month]
Highlights this month:
• [Revenue/growth metric] — [vs last month]
• [Key milestone achieved]
• [Key challenge encountered]
What I'd love your input on this month:
• [Specific question 1]
• [Specific question 2]
How you can help (if relevant):
• [Specific introduction request, if any]
Call this month: [Proposed date/time]Advisors who receive regular updates are far more likely to proactively make introductions and think of you when relevant opportunities arise.
When to End an Advisor Relationship
Signs it's time to move on:
| Sign | What It Means |
|---|---|
| They consistently miss or cancel calls | They're not invested |
| Their advice hasn't been relevant for 3+ months | The relationship has run its course |
| You've outgrown their experience | You need advisors at the next stage |
| They use your relationship for their own promotion without adding value | Misaligned incentives |
Ending an advisor relationship should be done gracefully:
"I really value what you've contributed over the past [time].
As we move into [next stage], our advisory needs are shifting toward
[different expertise]. I'd love to keep you in our network and reach
out when relevant — but I want to be respectful of your time
and not hold you to a formal commitment."
