Or perhaps, different markets, different willingness to gamble?
If people take a step back from the situation and compare the "ground floor startup opportunity" against a full salary job, they might realize the 50% salary reduction is more complicated than the absolute dollars foregone. Startups tend to demand more overtime than established companies, and quickly, the already reduced effective hourly rate starts dwindling down into fast-food employee territory.
Sure, the startup work might be fun, but you could get the same or more money from another job and do fun things after work.
Also, be prepared to add some risk to account for the chance that the currently well-intentioned startup owners will screw you over if things get bad.
Once you factor in the failure rates of startups, standard vesting times, etc., all that money you're giving up translates into one very expensive lottery ticket.
So if you go in with your eyes open, i.e., you're willing to forego that salary difference with a possibility of a zero return, then yeah, knock yourself out, because if you do win the lottery, it's a huge pay day. If you don't win the lottery, you knew it was a gamble, so no big deal.
Before jumping into bed with a startup for a huge salary cut though, a person might do well to ask him/herself if they'd be better off at a job with full pay and using half the salary to play the stock market.
If people take a step back from the situation and compare the "ground floor startup opportunity" against a full salary job, they might realize the 50% salary reduction is more complicated than the absolute dollars foregone. Startups tend to demand more overtime than established companies, and quickly, the already reduced effective hourly rate starts dwindling down into fast-food employee territory.
Sure, the startup work might be fun, but you could get the same or more money from another job and do fun things after work.
Also, be prepared to add some risk to account for the chance that the currently well-intentioned startup owners will screw you over if things get bad.
Once you factor in the failure rates of startups, standard vesting times, etc., all that money you're giving up translates into one very expensive lottery ticket.
So if you go in with your eyes open, i.e., you're willing to forego that salary difference with a possibility of a zero return, then yeah, knock yourself out, because if you do win the lottery, it's a huge pay day. If you don't win the lottery, you knew it was a gamble, so no big deal.
Before jumping into bed with a startup for a huge salary cut though, a person might do well to ask him/herself if they'd be better off at a job with full pay and using half the salary to play the stock market.