Founder Fridays No. 117
Power Corrupts -- Choosing Marketing Channels -- Building Insurgent Teams
Happy Friday.
Power Corrupts
Most founders don't realize that their brain chemistry literally changes the moment they gain authority over others. Even the most self-aware leaders unconsciously create psychological distance from their teams, leading to dangerous blind spots and eroding their ability to truly hear feedback. The research shows this power-driven transformation happens to everyone - the only variable is degree and self-awareness. To combat this, successful leaders build daily habits of asking three key questions: "What do you think?", "What could I be missing here?", and "How do you feel about that?" Big Think (7 minutes)
Choosing Marketing Channels
Most startups mindlessly copy their competitors' marketing channels rather than building a strategic advantage through channel selection. The key insight is that successful channel strategy isn't about trying everything - it's about moving methodically through distinct phases: testing, scaling, and core optimization. For immediate impact, audit your current channels and categorize them into these three buckets, then ruthlessly eliminate any channel that isn't showing clear signs of success after proper testing. MKT1 (7 minutes)
Building Insurgent Teams
Most founders naively believe technical excellence alone will win market adoption, but that delusion can kill your company. The harsh reality is that incumbents have a sophisticated playbook of 20+ weaponized tactics - from predatory lawsuits to regulatory capture - designed specifically to crush innovators before they gain traction. Smart founders flip the script by mapping out these threats early and building an "insurgent team" of champions, allies and proxies, while carefully avoiding public criticism that could motivate incumbents to destroy them. The single most important action is to fly under the radar while gaining initial traction with passionate early adopters. First Round Review (16 minutes)
Founder FAQ: What Are The Alternative Forms of Equity Compensation?
Three game-changing alternative forms of equity compensation exist: 1) Phantom Stock provides employees the financial benefits of ownership without actual shares. 2) Stock Appreciation Rights (SARs) give employees the right to receive only the increase in stock value over time. 3) Restricted Stock Units (RSUs) are promises of future stock that work best for later-stage companies with high valuations. Smart founders match the equity type to their stage: Phantom Stock for early-stage control, SARs for growth stage simplicity, and RSUs for late-stage compensation. Westaway (5 minutes)
Startup Funding Guides
I’ve put together a series of guides to equip founders to excel at fundraising. These guides break down the deal term by term and give you negotiation tips so that you can speak to investors with confidence.
Convertible Note: Guide / Video
Built By Founders for Founders
I co-founded my first startup with friends in 2007. As a founder, I struggled to find an affordable law firm that was designed for early-stage startups. So, I created one myself. Westaway is a law firm built by founders, for founders. If you're ready to ditch the outdated billable hour model and try a new approach to legal services that saves you time and money, let's talk. I'd love to jump on a 15-minute call to show you how we can make legal work smooth, fast and cost-effective for your startup. Schedule a call with me now.
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