I am a developer and own a web/mobile development agency. I had some success with startup as the technical co-founder. I get pitched few times a week by people saying they have a great startup idea, and if they develop it they will give me some equity. How do I tell them if you cannot manage few thousand dollars for developing a product they shouldn't be entrepreneuring and go get a real job - without sounding like a jerk. I am okay if people ask me if I can develop it for a lower fee and some equity. I really get agitated when people ask for free work. How do I convice them they should pay. Most people who ask for free work can afford to pay.
I would make sure to have a "one sheet" for your pricing already created. If you're okay with a discount rate and equity then have that as an option. When you pivot to discussing compensation it becomes as easy as " for compensation for this projects here's a link to our page/PDF for startups. As we outline there we take pride in our work and like to pay our staff on time so we don't work for just equity but do have special rates for startups who designate a portion of equity."