Solution-processed iron selenide nanocrystals (NCs) have recently attracted considerable attention in electrocatalysis water splitting. Nevertheless, a primary challenge in current iron-based NCs chemical synthesis is controlling phase purities between each chalcogen (monochalcogenide, dichalcogenides, and oxides), which requires a comprehensive understanding of the reaction mechanisms at the early stages of nucleation. Herein, we investigate the fundamental steps in transforming molecular organoiron and organoselenium precursors to iron selenides NCs with the view of developing universal synthesis protocols for phase pure metal selenium and metal oxides NCs. The main intermediate species and volatile by-products are identified by high-resolution electron microscopy and Nuclear Magnetic Resonance (NMR) spectroscopy (1H, 13C, and 31P). Experimental evidence suggests that the phase determining factor is the coordinating reactivity difference between olefins (1-octadecene, oleylamine), tributylphosphine and trioctylphosphine associated with their corresponding Se bond cleavage. This work proposes organoselenium interconversion reaction mechanisms during iron selenides synthesis, offering a universal synthetic strategy for other electrocatalytically or photocatalytically active layered metal selenides materials.