How payments work on Pelion

By Pelion TeamNovember 2019

On Pelion you pay for mentorship via a portion of your income. We call these: Income Share Agreement (ISA).

In general, an ISA is a financial structure in which an individual provides something of value to a recipient who, in exchange, agrees to pay back a percentage of their income for a fixed number of months.

We have two standard deals:

  1. Pay now: pay 4% of your current income.
  2. Pay later: pay 6% of a future income level.

"Pay now" is a helpful model, if your mentorship is of general nature, while "Pay later" might be preferable if you're working towards a specific career goal, such as a job-change, raise, or promotion.

This enables mentors to offer mentorship services without requiring any upfront payment, while aligning incentives between mentor and mentee. You might think of this as selling shares in your future self.

Pelion might ask for documentation, verifying your income level.

Your first payment happens when the mentorship is entered into. The first month of mentorship is always fully refundable.

The ISA is not a loan or other debt or credit instrument. It represents your obligation to pay a specific percentage of your future earned income and does not give us any rights regarding your educational, training, or employment pursuits.

How does Pay Now work?

Pay Now is simple: you pay 4% of your gross monthly income. Since the best mentors tend to be just one or two career-steps ahead of you, your buying power should be proportional to theirs.

How does Pay Later work?

With Pay Later, you pay 6% of a future income level. The Minimum Income Threshold (MIT) after which, you'll start paying, can be negotiated with your mentor.

Once you reach your MIT, you start paying 6% monthly, for a number of months equivalent to the number of months you received mentorship for.

Here's an example:

Income Share Agreement Example

Goodwill

A mentor may choose to donate their time to offer mentorships on a goodwill basis. Mentees will not pay for the mentorship, but neither are mentors obligated to meet any commitment.

Charity

Mentors can commit any earnings to a charity of their choice (we recommend you choose from GiveWell).

Enterprise

We offer enterprise deals where the employees can enter into a mentorship with anyone on Pelion financed by an enterprise agreement. Please contact Martin Permin at martin@pelion.app for further details.

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