Has anyone heard of a software agency business model like this?

Has anyone heard of a business model like this:

Boutique SaaS software agency in a narrow niche, with an equity stake in every project, and getting paid for the work?

The value for the client is they get the project to market faster and cheaper, because:

  1. As an agency there is a deep domain expertise in the niche already.
  2. Lots of reusable components, because of the focused work in the niche.
  3. Lots of boilerplate and processes defined specifically for these types of projects.
  4. Because of equity, the interests are more aligned, than strictly client <-> agency relationship.

What do you think of this? What would be a fair equity for this?

  1. 1

    Yes, there are companies like that, some VERY successful.

    But they trade the shares for labor NOT things agencies are known for (like being effective in bootstrapping).

  2. 1

    I think to an early stage founder equity is more valuable than a one off payment to an agency.

    If I went to an agency and they asked for equity in my business I would walk away laughing.

    UNLESS... it was a really huge, significant and expensive piece of work that I couldn't readily get done elsewhere AND they were gonna charge me next to nothing for a very small equity slice.

  3. 1

    I've heard that management consultancies some times do deals like these

  4. 1

    Very smart I think.
    Are you planning on starting an agency?
    Because I am. Just started this week with CodeFromAnywhere.com

  5. 1

    This comment was deleted a month ago.

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