The 2.5x Rule: How to Properly Compensate Mentors and Advisors in SaaS

Jason Lemkin outlines the 2.5x rule for compensating mentors and advisors: after 2.5 meetings, introductions, or favors, founders must offer equity compensation rather than cash, as successful mentors value time and meaningful participation over monetary payment. The article emphasizes that finding great mentors is critical for scaling SaaS companies, but founders must properly value the relationship through stock options and investment opportunities.