Jun 15, 2022 · 28m · product-market-fit

How to Build a Board of Advisors | Darryl Hicks, Founder of Flexpay · PMF Show

Darryl Hicks · 20m spoken Pablo Srugo · 5m spoken
0:00 / 0:00
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In this episode of The Product Market Fit Show, Flexpay co-founder and CEO Darryl Hicks breaks down his framework for building a world-class advisory board prior to generating revenue. He explains how recruiting active, in-the-trenches executives across key operational skill buckets provides early-stage startups with critical shortcuts, top-tier network introductions, and governance playbooks.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Pablo holds 22% of the talking time here. How this is scored →

Pablo as informed peer 2.3 Guest teaching 3.9 Guest disagreement 0.4 Pablo pushing back 1.0
05100:0010:0020:001:35–4:56 · Pablo as informed peer 2/10 The 8-Bucket Framework for Building an Advisory Board Pablo prompts Darryl to explain why he opted for a formal advisory board, then lightly challenges the exact number of advisory buckets. Darryl explains Dan Martell's 8-bucket framework and the psychological power of constraints.4:56–8:42 · Pablo as informed peer 1/10 Identifying Skill Buckets, Finding Talent, and Advisor Value Darryl lays out his framework for selecting advisor skill buckets and outlines the operating rule that advisors provide conversations, strategy, and connections rather than execution.8:42–13:46 · Pablo as informed peer 2/10 Formal vs. Informal Advisors and Trench-Executing Talent Pablo asks how Darryl knew when to formalize relationships with equity and how he crowdsourced advisor recommendations at Money20/20.13:46–17:26 · Pablo as informed peer 3/10 Advisor Roles, Super-Connectors, and Call Preparation Pablo probes why Darryl avoided scheduled recurring board meetings. Darryl explains that demanding calendar commitments scares away top in-the-trenches talent, opting instead for ad hoc 'bat phone' calls.17:26–20:43 · Pablo as informed peer 4/10 Advisory Board vs. Investor Sounding Boards and Vetting Pablo brings in his own startup founder background at Gymtrack to ask how to vet advisors who only possess one hour of useful depth. Darryl clarifies that filtering strictly for active operators solves this problem.20:43–23:47 · Pablo as informed peer 2/10 Advisor Equity Compensation and Outreach Strategy Darryl breaks down standard advisor equity grant percentages (0.1% to 1%, typically 0.2%) and explains the outreach strategy of asking for advice rather than an advisory role.23:47–27:13 · Pablo as informed peer 2/10 Real-World Advisory Impact: Playbooks, Intros, and M&A Pablo asks about advisor churn and sunsetting. Darryl explains how advisors provided playbooks, opened doors at Stripe, and how he filled his open 8th seat with an M&A specialist.1:35–4:56 · Guest teaching 5/10 The 8-Bucket Framework for Building an Advisory Board Pablo prompts Darryl to explain why he opted for a formal advisory board, then lightly challenges the exact number of advisory buckets. Darryl explains Dan Martell's 8-bucket framework and the psychological power of constraints.4:56–8:42 · Guest teaching 5/10 Identifying Skill Buckets, Finding Talent, and Advisor Value Darryl lays out his framework for selecting advisor skill buckets and outlines the operating rule that advisors provide conversations, strategy, and connections rather than execution.8:42–13:46 · Guest teaching 4/10 Formal vs. Informal Advisors and Trench-Executing Talent Pablo asks how Darryl knew when to formalize relationships with equity and how he crowdsourced advisor recommendations at Money20/20.13:46–17:26 · Guest teaching 3/10 Advisor Roles, Super-Connectors, and Call Preparation Pablo probes why Darryl avoided scheduled recurring board meetings. Darryl explains that demanding calendar commitments scares away top in-the-trenches talent, opting instead for ad hoc 'bat phone' calls.17:26–20:43 · Guest teaching 2/10 Advisory Board vs. Investor Sounding Boards and Vetting Pablo brings in his own startup founder background at Gymtrack to ask how to vet advisors who only possess one hour of useful depth. Darryl clarifies that filtering strictly for active operators solves this problem.20:43–23:47 · Guest teaching 5/10 Advisor Equity Compensation and Outreach Strategy Darryl breaks down standard advisor equity grant percentages (0.1% to 1%, typically 0.2%) and explains the outreach strategy of asking for advice rather than an advisory role.23:47–27:13 · Guest teaching 3/10 Real-World Advisory Impact: Playbooks, Intros, and M&A Pablo asks about advisor churn and sunsetting. Darryl explains how advisors provided playbooks, opened doors at Stripe, and how he filled his open 8th seat with an M&A specialist.1:35–4:56 · Guest disagreement 1/10 The 8-Bucket Framework for Building an Advisory Board Pablo prompts Darryl to explain why he opted for a formal advisory board, then lightly challenges the exact number of advisory buckets. Darryl explains Dan Martell's 8-bucket framework and the psychological power of constraints.4:56–8:42 · Guest disagreement 0/10 Identifying Skill Buckets, Finding Talent, and Advisor Value Darryl lays out his framework for selecting advisor skill buckets and outlines the operating rule that advisors provide conversations, strategy, and connections rather than execution.8:42–13:46 · Guest disagreement 1/10 Formal vs. Informal Advisors and Trench-Executing Talent Pablo asks how Darryl knew when to formalize relationships with equity and how he crowdsourced advisor recommendations at Money20/20.13:46–17:26 · Guest disagreement 1/10 Advisor Roles, Super-Connectors, and Call Preparation Pablo probes why Darryl avoided scheduled recurring board meetings. Darryl explains that demanding calendar commitments scares away top in-the-trenches talent, opting instead for ad hoc 'bat phone' calls.17:26–20:43 · Guest disagreement 0/10 Advisory Board vs. Investor Sounding Boards and Vetting Pablo brings in his own startup founder background at Gymtrack to ask how to vet advisors who only possess one hour of useful depth. Darryl clarifies that filtering strictly for active operators solves this problem.20:43–23:47 · Guest disagreement 0/10 Advisor Equity Compensation and Outreach Strategy Darryl breaks down standard advisor equity grant percentages (0.1% to 1%, typically 0.2%) and explains the outreach strategy of asking for advice rather than an advisory role.23:47–27:13 · Guest disagreement 0/10 Real-World Advisory Impact: Playbooks, Intros, and M&A Pablo asks about advisor churn and sunsetting. Darryl explains how advisors provided playbooks, opened doors at Stripe, and how he filled his open 8th seat with an M&A specialist.1:35–4:56 · Pablo pushing back 2/10 The 8-Bucket Framework for Building an Advisory Board Pablo prompts Darryl to explain why he opted for a formal advisory board, then lightly challenges the exact number of advisory buckets. Darryl explains Dan Martell's 8-bucket framework and the psychological power of constraints.4:56–8:42 · Pablo pushing back 0/10 Identifying Skill Buckets, Finding Talent, and Advisor Value Darryl lays out his framework for selecting advisor skill buckets and outlines the operating rule that advisors provide conversations, strategy, and connections rather than execution.8:42–13:46 · Pablo pushing back 1/10 Formal vs. Informal Advisors and Trench-Executing Talent Pablo asks how Darryl knew when to formalize relationships with equity and how he crowdsourced advisor recommendations at Money20/20.13:46–17:26 · Pablo pushing back 2/10 Advisor Roles, Super-Connectors, and Call Preparation Pablo probes why Darryl avoided scheduled recurring board meetings. Darryl explains that demanding calendar commitments scares away top in-the-trenches talent, opting instead for ad hoc 'bat phone' calls.17:26–20:43 · Pablo pushing back 1/10 Advisory Board vs. Investor Sounding Boards and Vetting Pablo brings in his own startup founder background at Gymtrack to ask how to vet advisors who only possess one hour of useful depth. Darryl clarifies that filtering strictly for active operators solves this problem.20:43–23:47 · Pablo pushing back 0/10 Advisor Equity Compensation and Outreach Strategy Darryl breaks down standard advisor equity grant percentages (0.1% to 1%, typically 0.2%) and explains the outreach strategy of asking for advice rather than an advisory role.23:47–27:13 · Pablo pushing back 1/10 Real-World Advisory Impact: Playbooks, Intros, and M&A Pablo asks about advisor churn and sunsetting. Darryl explains how advisors provided playbooks, opened doors at Stripe, and how he filled his open 8th seat with an M&A specialist.

speaking balance: gold is Pablo, purple is the guest (3 minute bins)

0:00 · Pablo 46.4% · guest 53.6%0:00 · Pablo 46.4% · guest 53.6%3:00 · Pablo 1.4% · guest 98.6%3:00 · Pablo 1.4% · guest 98.6%6:00 · Pablo 9.5% · guest 90.5%6:00 · Pablo 9.5% · guest 90.5%9:00 · Pablo 23.6% · guest 76.4%9:00 · Pablo 23.6% · guest 76.4%12:00 · Pablo 7.6% · guest 92.4%12:00 · Pablo 7.6% · guest 92.4%15:00 · Pablo 34.8% · guest 65.2%15:00 · Pablo 34.8% · guest 65.2%18:00 · Pablo 35.1% · guest 64.9%18:00 · Pablo 35.1% · guest 64.9%21:00 · Pablo 8.1% · guest 91.9%21:00 · Pablo 8.1% · guest 91.9%24:00 · Pablo 7% · guest 93%24:00 · Pablo 7% · guest 93%27:00 · Pablo 82.2% · guest 17.8%27:00 · Pablo 82.2% · guest 17.8%
Sharpest disagreement ▶ 13:54 Rejecting semi-retired and professional board members

Darryl firmly dismisses the conventional practice of hiring semi-retired board professionals, insisting on active operators executing in the trenches.

Hardest push from Pablo ▶ 4:03 Challenging the arbitrary eight-bucket number

Pablo pushes back on Darryl's framework, asking why it must be eight instead of six or ten.

Biggest teaching moment ▶ 21:50 Masterclass on courting advisors

Darryl educates listeners and the host on outreach psychology: asking directly for an advisor role blows up the deal, whereas asking for advice leads them to ask how they can help.

Pablo holds their own ▶ 18:33 Pablo shares Gymtrack vetting war story

Pablo demonstrates startup operating acumen by recounting an advisor from his Gymtrack days who only had one hour of real insight, pressing Darryl on how to vet depth.

the scores for every segment, with the reasoning behind each
ChapterTopicPablo as informed peerGuest teachingGuest disagreementPablo pushing backWhy
The 8-Bucket Framework for Building an Advisory Board 2512 Pablo prompts Darryl to explain why he opted for a formal advisory board, then lightly challenges the exact number of advisory buckets. Darryl explains Dan Martell's 8-bucket framework and the psychological power of constraints.
Identifying Skill Buckets, Finding Talent, and Advisor Value 1500 Darryl lays out his framework for selecting advisor skill buckets and outlines the operating rule that advisors provide conversations, strategy, and connections rather than execution.
Formal vs. Informal Advisors and Trench-Executing Talent 2411 Pablo asks how Darryl knew when to formalize relationships with equity and how he crowdsourced advisor recommendations at Money20/20.
Advisor Roles, Super-Connectors, and Call Preparation 3312 Pablo probes why Darryl avoided scheduled recurring board meetings. Darryl explains that demanding calendar commitments scares away top in-the-trenches talent, opting instead for ad hoc 'bat phone' calls.
Advisory Board vs. Investor Sounding Boards and Vetting 4201 Pablo brings in his own startup founder background at Gymtrack to ask how to vet advisors who only possess one hour of useful depth. Darryl clarifies that filtering strictly for active operators solves this problem.
Advisor Equity Compensation and Outreach Strategy 2500 Darryl breaks down standard advisor equity grant percentages (0.1% to 1%, typically 0.2%) and explains the outreach strategy of asking for advice rather than an advisory role.
Real-World Advisory Impact: Playbooks, Intros, and M&A 2301 Pablo asks about advisor churn and sunsetting. Darryl explains how advisors provided playbooks, opened doors at Stripe, and how he filled his open 8th seat with an M&A specialist.

Statements from this episode (11)

Disclosure
Hicks used Dan Martell's own framework to recruit Martell as an advisor
“Actually, one of my advisors and mentors and friends, Dan Martell, walked me through a framework of how to build a world-class advisory board, which I then used that framework to get him on my advisory board, which is a fun little hack.”
Darryl Hicks Jun 15, 2022 ▶ 2:21
Disclosure
Hicks: Flexpay built its initial product for internal company use
“We built the initial version of Flexpay for ourselves, so we had a lot of, like, boxes already checked off as far as, you know product market fit and, you know basic, you know, functional tech stack that really gave everything we need to do, reporting and stuf…”
Darryl Hicks Jun 15, 2022 ▶ 2:56
Disclosure
Hicks: Flexpay reserved its eighth advisory board slot for M&A
“And in full transparency, I only filled seven of the boxes at the beginning, because I was like, I need to keep one free. For the stuff that I don't know yet. Like, I don't know what I don't know as I'm going to discover things as I scale this business. Right.…”
Darryl Hicks Jun 15, 2022 ▶ 4:20
Insight
Hicks: Advisory boards should provide strategy and connections, not operational execution
“And then how you interact with these people is really around three things. It's conversations, strategy, and connections. So conversations, not action. Strategy, not execution. And connections is really the biggest part, right? What do you need to do and who d…”
Darryl Hicks Jun 15, 2022 ▶ 7:48
Disclosure
Hicks: Flexpay advisor secured a 14-executive meeting at Visa Canada HQ
“Like I called up one of my advisors, next thing you know, I'm sitting in Toronto at Visa Canada headquarters with 14 executives talking about What it is that Flexbay is doing and how we can better integrate into Visa's ecosystem.”
Darryl Hicks Jun 15, 2022 ▶ 8:27
Insight
Hicks: Engage startup advisors on demand rather than on recurring cadences
“And every single one of my advisors, this is key, said, I can do this, but I cannot commit to like monthly meetings or quarterly meetings or anything like that. Like call me anytime, email me anytime, ad hoc, you're stuck. Great. I know a lot of people, and Da…”
Darryl Hicks Jun 15, 2022 ▶ 13:18
Disclosure
Hicks: Flexpay added an advisor purely for network and brand credibility
“One of the people that I added onto my board was kind of purely for that reason. Really the only value I knew this person was going to bring was their connections. How many people they know and how many people know them. And just to be able to go around and sa…”
Darryl Hicks Jun 15, 2022 ▶ 15:20
Insight
Hicks: Recruiting active operators as advisors simplifies vetting for depth
“If I put that filter of saying, I'm only going to work with people that are actually working and building their own business and really moving the needle in a significant way and what they are doing day to day in their own job. I kind of don't need to worry as…”
Darryl Hicks Jun 15, 2022 ▶ 20:09
Opinion
Hicks: Building advisory board pre-revenue was smartest Flexpay decision
“Smartest thing I ever did in Flex Bay was building an advisory board before I even had a dollar of revenue.”
Darryl Hicks Jun 15, 2022 ▶ 20:29
Disclosure
Hicks: Most Flexpay advisors received around 0.2% equity
“Most of my people ended up coming in around 0.2%. And then of course that gets diluted down when you bring in future investment rounds and stuff like that.”
Darryl Hicks Jun 15, 2022 ▶ 21:14
Insight
Hicks: Never ask prospective advisors to join on the first call
“The first conversation, when you reach out to these people, you're never asking them to be on the advisory board. That's almost a surefire way to have a blow up in your face.”
Darryl Hicks Jun 15, 2022 ▶ 22:17
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