I did the $1 salary for 6 years for the entire duration of my first startup (sold to LinkedIn, bootstrapped). These were the facts:
1. My gf (now wife) used to pay for dinner and events 75% of the time, making me forever grateful and added pressure to produce
2. Company was pay check to pay check for 4 years, so I couldn't effectively take a paycheck
3. I took a loan out from my parents, who got this from mortgaging their house. Failure and a pay check wasn't an option
4. I was 22 and lived with my parents, rent and bills were effectively $0
5. Lived in Canada vs SF.
I aged myself likely a decade. It was done out of necessity. Founders that do this are doing this for various reasons, including making the business default-alive, setting an example for other employees to take minimal salary, etc.
Each reason, which can be debated, need to be checked twice. Default-alive? Rethink your business and where you spend time. Want employees to take minimal salary? People need money to have necessities, and doing this will deter folks from you and likely bias their perspective on startups.
@businessbarista
Wrong. And any person who suggests this has never built a business.