Advice: Making the transition to full-time
- Thread starter AffApprentice
- Start date
Not a word to anyone about all those PM's or I'll tell everyone you grabbed my ass.
just remember this- there is a huge false sense of security with a 'corporate' job- but there's no promise you'll have two years left there either.
People tend to overlook this fact - in the midst of tons getting laid off right now.
Go for it- and kill it.
People tend to overlook this fact - in the midst of tons getting laid off right now.
Go for it- and kill it.
If I may:
If Corp tax is X and personal income tax is Y;
While Y > X, do not pay out to yourself from the corp but 'retain' the earnings (keeping them under the corporate veil) so as to keep those earnings away from being taxed at your higher personal rate.
.... oversimplified but in a nutshell
^^ this. There always seems to be a false sense of security with 9-5 jobs but there isn't any.
and i can still spend corporate earnings on fun sexy time?
sounds like i will indeed need to incorporate.
LLC or S-Corp? Maybe I'll start a poll...
sounds like i will indeed need to incorporate.
LLC or S-Corp? Maybe I'll start a poll...
i cant explain why, but being an s-corp is going to save me thousands!
i've been fulltime for just under a year.... had some ups and downs, but would definitely not trade it for a another 9-5
I've been on my previous company's COBRA plan for health. it lasts for 18 months.
and I have to say, there's a lot more security controlling your own destiny than letting someone else's company do it for you
i've been fulltime for just under a year.... had some ups and downs, but would definitely not trade it for a another 9-5
I've been on my previous company's COBRA plan for health. it lasts for 18 months.
and I have to say, there's a lot more security controlling your own destiny than letting someone else's company do it for you
LLC is pass thru for what I know, unless you elect to be taxed as a scorp. Im not fimilar with llc taxed as scorp and if you can retain profits... but I know reg LLC is 100% pass thru to you no matter what
Dude - That's friggin inspiration for me.
I'm so sick of the corporate programming gig for the past 10+ years. Someday I hope to finally figure out how to make decent AM money :jester:.
YouTube - They told me Micka Mex feat Central Digit
YouTube - No Time to Waste - JPlus
add these to the list...especially the first.
The answer to your question is very different depending on your specific situation. To start:
Do you have a family? A mortgage? How much is it?
Are you in a career that would allow you to take time off and come back to it if necessary? Or once you leave, are you screwed?
How much income are you giving up to do this?
I'm asking myself all the same questions. 2 years of income - that's ludicrisp in general.
Do you have a family? A mortgage? How much is it?
Are you in a career that would allow you to take time off and come back to it if necessary? Or once you leave, are you screwed?
How much income are you giving up to do this?
I'm asking myself all the same questions. 2 years of income - that's ludicrisp in general.
Great inputs about healthcare, tax consideration, LLC setup, discipline on work hours. Nobody mentioned the need to have frequent breaks and lots of exercise if you are working from home.
My 2c. . .go full time now. There is no more security BS even in the Corp BS.
My 2c. . .go full time now. There is no more security BS even in the Corp BS.
I have a lot of insight into this.. and I think i can give you some good advice.
I have been in affiliate marketing for over 10 years now, since I was in high school and have loved it since day 1 and still do.
I had a really cozy and secure job at a big company as an embedded software engineer. I worked there for about 5 years while coming home and working on my internet businesses late into the night...
When I was 23 years old, I was making more than my boss, and my bosses boss.. but I still did not quit. Once I had enough money saved up... (about FOUR years living expenses) and still had some decent income online, I decided to take the plunge and left my 9-5 job right as our economy crashed.
Shortly after I left my job, my businesses started to collapse... needless to say I was terrified and depressed... but after leaving my job over a year and a half ago, things have started to turn around and I am not nervous anymore... but anyways, you really need to consider the following.. I can tell you these are the most important things from my own experience.
- You don't need to have 4 years of living expenses saved up like I did.. in fact, I think it is almost bad to do that.. because it made me lazy some what knowing that I had the ability to slack off.. but I would say at a minimum you want 1.5 years.
- If you have a family to support, don't even try this.. you don't want to risk their well being.. luckily I didn't which was why it was easier to take the plunge
- DO NOT work out of your home. You need to rent a small office. Making the transition from going to work every day interacting with people on a daily basis, to utter isolation can really mess with your head... I know you think you will be so motivated once you leave.. and will work 10 hours a day on your business.. but you'd be surprised at how hard that really is when you are your own boss... and you are in the comfort of your own home. You also need human interaction... as much as you think you hate your co-workers now, you still need some kind of human interaction on a daily basis. That is why going to an office you rent where other people are can be good for you mentally.
- You have to be DISCIPLINED. When you are working online.. that means you WORK. No aol instant messenger, chatting on the phone for an hour.. watching tv... if you start doing this, you will fail. You need to really treat it as a job.. have set hours.. set your alarm clock... have a schedule.. and have daily, weekly, monthly, yearly goals. Remember you're not working for the man, you ARE the man now.. if you fuck up, it is on you.
- Definitely leave on good terms with your employer. Even if they are total idiots... it is just the smart thing to do.
- Definitely get SOME kind of health insurance.. even if you are perfectly healthy.. one catastrophic health emergency and you could become bankrupt.
- If you aren't planning on setting up an LLC, or you do not have one set up already for your online efforts. don't even bother leaving your job because you obviously don't know wtf you are doing.
- Obviously, your current income needs to be STABLE before you leave.. meaning you are 95% confident that 6 months - 1 year out, you will be able to make the same or greater. NO, you cannot convince yourself that once you leave, then you will make money *somehow*. You must be making the money NOW before you walk away and it must be stable.. and stable within the next foreseeable 6months+ into the future.
- Working for yourself is HARDER than working for someone else. Getting up every day and going to work... is not even half as hard as being the captain of your own ship. Remember this.
On the positive side of things... if you can manage your stress levels, stay calm cool and collected.. not freak out and stay focused... you can really do well. Internet marketing makes millionaires. Plain and simple.
You will be doing something that you're passionate about.. and the sky really is the limit. You need to think big.. bigger than yourself.. and realize to make the REAL insane money, it is going to have to be bigger than a 1 man show (* most of the time *)
To sum things up.. working for yourself is really a test of your will and discipline. You have to make sure you don't let doubt or fear paralyze your efforts.. if you can overcome this, you will be ok.
I have been in affiliate marketing for over 10 years now, since I was in high school and have loved it since day 1 and still do.
I had a really cozy and secure job at a big company as an embedded software engineer. I worked there for about 5 years while coming home and working on my internet businesses late into the night...
When I was 23 years old, I was making more than my boss, and my bosses boss.. but I still did not quit. Once I had enough money saved up... (about FOUR years living expenses) and still had some decent income online, I decided to take the plunge and left my 9-5 job right as our economy crashed.
Shortly after I left my job, my businesses started to collapse... needless to say I was terrified and depressed... but after leaving my job over a year and a half ago, things have started to turn around and I am not nervous anymore... but anyways, you really need to consider the following.. I can tell you these are the most important things from my own experience.
- You don't need to have 4 years of living expenses saved up like I did.. in fact, I think it is almost bad to do that.. because it made me lazy some what knowing that I had the ability to slack off.. but I would say at a minimum you want 1.5 years.
- If you have a family to support, don't even try this.. you don't want to risk their well being.. luckily I didn't which was why it was easier to take the plunge
- DO NOT work out of your home. You need to rent a small office. Making the transition from going to work every day interacting with people on a daily basis, to utter isolation can really mess with your head... I know you think you will be so motivated once you leave.. and will work 10 hours a day on your business.. but you'd be surprised at how hard that really is when you are your own boss... and you are in the comfort of your own home. You also need human interaction... as much as you think you hate your co-workers now, you still need some kind of human interaction on a daily basis. That is why going to an office you rent where other people are can be good for you mentally.
- You have to be DISCIPLINED. When you are working online.. that means you WORK. No aol instant messenger, chatting on the phone for an hour.. watching tv... if you start doing this, you will fail. You need to really treat it as a job.. have set hours.. set your alarm clock... have a schedule.. and have daily, weekly, monthly, yearly goals. Remember you're not working for the man, you ARE the man now.. if you fuck up, it is on you.
- Definitely leave on good terms with your employer. Even if they are total idiots... it is just the smart thing to do.
- Definitely get SOME kind of health insurance.. even if you are perfectly healthy.. one catastrophic health emergency and you could become bankrupt.
- If you aren't planning on setting up an LLC, or you do not have one set up already for your online efforts. don't even bother leaving your job because you obviously don't know wtf you are doing.
- Obviously, your current income needs to be STABLE before you leave.. meaning you are 95% confident that 6 months - 1 year out, you will be able to make the same or greater. NO, you cannot convince yourself that once you leave, then you will make money *somehow*. You must be making the money NOW before you walk away and it must be stable.. and stable within the next foreseeable 6months+ into the future.
- Working for yourself is HARDER than working for someone else. Getting up every day and going to work... is not even half as hard as being the captain of your own ship. Remember this.
On the positive side of things... if you can manage your stress levels, stay calm cool and collected.. not freak out and stay focused... you can really do well. Internet marketing makes millionaires. Plain and simple.
You will be doing something that you're passionate about.. and the sky really is the limit. You need to think big.. bigger than yourself.. and realize to make the REAL insane money, it is going to have to be bigger than a 1 man show (* most of the time *)
To sum things up.. working for yourself is really a test of your will and discipline. You have to make sure you don't let doubt or fear paralyze your efforts.. if you can overcome this, you will be ok.
Here's the advice I give all my coaching students (and I followed this advice myself)...
Wait till you're earning the equivalent of your FT income... for 6 months straight. That way, you KNOW you're financially stable and can afford to walk away from your J.O.B.
Wait till you're earning the equivalent of your FT income... for 6 months straight. That way, you KNOW you're financially stable and can afford to walk away from your J.O.B.