Startups are often celebrated for their innovation and agility, but some practices like expecting professionals to work for free deserve a closer look. Bengaluru-based professional Ankit lately shared his frustration with the 1% Club of Sharan Hegde. It is a startup that promises to help people in achieving financial freedom.
Ankit said that the company approached him to host an online masterclass titled “Building your personal brand online.” He quoted his fee of ₹25,000 per hour and the response was surprising. The company said that experts are not paid for the sessions but the compensation is to offer “branding on their app.” Ankit declined the offer and voiced disappointment on X social platform.
Why some startups fail to acknowledge the value of skilled professionals despite claiming to support growth and financial independence? This is the question being asked now. 1% Club is generating $8 million in annual revenue and boasting a healthy profit margin.
It is learned that the 1% Club lately laid off 15% of its workforce to cut costs. Co-founder Sharan Hegde admitted mistakes in hiring and also unnecessary expenses amid the rapid growth of the company.
Startups like the 1% Club play an important role in shaping financial freedom and empowerment of people. Practices like offering exposure instead of fair compensation can damage their credibility.
Many startups are currently resorting to similar practices under the guise of tight budgets or offering opportunities. Such approaches often backfire and lead to public backlash as well as reputational damage.
It is time for founders to rethink policies that undervalue people. Respecting expertise is not just good ethics, but it is also about good business.
