I have recently launched my small online business(sole proprietorship). I have no funding and this is something I been working on for the last two years on the side at night after work.
I am relying on some key people in order to sell the service and they have already shown abit interest. In addition to salary is there something else I could offer them that would make them want to join and how would I go about it? I know there is shares but Im pretty green when it comes to this stuff.
Any advice would be greatly appreciated.
You said it. Most startup compensation is a mix of salary (cash) and equity (stock).
Very often, startups without funding can't pay any salary at all, so they offer significant stock to the first few "employees". Actually, most people agree that if you work for a startup for no salary, you should think of yourself as a co-founder.
In order to give stock, you need to incorporate the company properly (usually, in the US that means a C corp).
Alain is right that you can offer stock and other monetary benefits, but it's also worth noting that something doesn't have to be monetary in nature to have value.
I could go on and on. These don't replace a salary -- most of us have bills to pay -- but when applied properly they can make a lower salary position more attractive.
If they are going to be sales people perhaps a straight commission deal would work? You can entice them with a higher than normal commission rate (I'd set an expiration date on the higher rate though). Good luck.