Equity for a first employee
trunnell: If software is the product, I suggest the first engineer should be taken on as a co-founder and/or get the same equity as the non-technical founders.  Anything less will undervalue the incredible and unique contribution of that engineer.Otherwise, I've seen two methods of valuing startup equity offers:1. Options are worth nothing, until they are worth something.2. Options are worth their face value times the probability you will meet that face value.  Example: 2% equity of a startup targeting a $100M exit, with a 1% probability of hitting that exit = (2% * 100M) * 1% = $20,000.I agree with other commenters that a chance at "life-changing money" is usually required for higher-risk situations like being a first employee.  So that's the real test, not a fixed percentage.