Salary
Salary compensation is a very deep topic and most startups haven't figured out which approach to use. If that's the case, Buffer's formula-based approach is a great default to use since it's fair, easy-to-implement, and based on the proprietary Radford global compensation database that would be expensive for you to access on your own. This is important because a principled approach to compensation will reduce the offer negotiation required when closing candidates.
If you'd like to go deeper, here are a few other compensation resources you may find useful:
Numbeo - not perfect, but the most common source for benchmarking cost of living by location. Cost of living doesn't always reflect market demand, but it's a decent approximation.
📎
The size of your salary range shouldn't exceed 30% of your minimum.
✅ $100k - $120k (20% difference)
✅ $120k - $150k (25% difference)
❌ $100k - $150k (50% difference)
Even if you're willing to pay far outside your range for an exceptional candidate, setting too broad of a range may impact your ability to attract the majority of candidates in your target demographic.
Equity
For your first 3 hires, 1-2% is a standard rule of thumb for how much equity to offer.
When setting equity, these are the two articles we recommend reading: