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Trying to incentivize an internal champion at a target company with advisory shares is likely ineffective. The potential equity payout is too far in the future to motivate them through a slow procurement process. Direct cash incentives or non-monetary rewards like public credit and enhanced status are far more powerful motivators.
Beyond financial incentives, a powerful 'carrot' for salespeople is the personal pride and satisfaction of winning a specific, coveted customer logo. This non-monetary goal adds a 'notch on the belt' and can be a stronger driver of performance than the deal's commission alone.
When discussing compensation, frame equity as providing four things: cash flow, sale bonus, risk, and control. Most employees only want the first two and actively avoid risk and aren't getting control anyway. This simplifies the conversation and allows you to offer profit share and sale bonuses instead of actual shares.
Granting stock options is only half the battle. To make equity a powerful motivator, leaders must constantly communicate a clear and believable narrative for a future liquidity event, such as an acquisition. This vision is what transforms paper ownership into a tangible and valuable incentive in the minds of employees.
To ensure true alignment and 'skin in the game,' offer proven managers the opportunity to buy into the HoldCo's equity rather than giving them stock grants. People value what they pay for, creating a stronger sense of ownership and long-term commitment.
The difficulty of enterprise procurement is a feature, not a bug. A champion will only expend the immense internal effort to push a deal through if your solution directly unblocks a critical, unavoidable project on their to-do list. Your vision alone is not enough to motivate them.
Salas O'Brien sources the majority of its deals from internal referrals without offering financial kickers. The primary motivation for employees is their status as shareholders. They understand that successful mergers grow the business, directly increasing the value of their own equity.
Founders whose startups were acquired by large enterprises can become your most powerful internal champions. They understand the startup mentality, know how to navigate internal politics and procurement, and are often motivated to bring in better technology. Actively seek them out.
Gifting non-performance-based shares to all employees doesn't foster an 'owner mindset.' True ownership thinking is better cultivated through incentives tied to specific, controllable outcomes, like targeted cash bonuses. Standard equity compensation often just becomes another part of the salary package, disconnected from individual impact.
A single internal advocate can be easily dismissed by others as just "the person who likes that vendor." However, cultivating three or more champions from different parts of the business fundamentally changes the dynamic. This transforms individual preference into organizational consensus, making your solution the clear and accepted choice.
Your ideal champion inside a large company is often someone who secretly wishes they'd founded a startup but is too risk-averse. They are drawn to the founders' ambition and will advocate for you because they want to feel part of the startup journey vicariously.