Status games
I just listened to an episode of "Built to Sell," a podcast where John Warrilow, the host, interview entrepreneurs who sold their company.
This particular interview was with Josh Abramson, the founder of CollegeHumor.com.
TeePublic on Building Valuable Companies
Josh sold his company to InterActiveCorp and made a bunch of money but couldn't stomach the corporate culture.
He then left and started an online T-Shirt company, TeePublic that eventually sold for $36 million.
What's funny is that when he left the acquiring company, his friends felt sorry for him and asked how he could support his family in NYC with a lowly T-shirt company.
Keep in mind this guy was already rich and TeePublic was making a lot of money but he lost his social status!
He stopped getting invited to the best parties and social events and he garnered the sympathy of his friends.
I didn't know this could happen to a rich guy who works for himself on his own terms but hey, middle school social games exists in all socio-economic groups.
But don't think you are exempt from status games.
W2 life at a lot of companies is organized around status games.
Titles, promotions, and money are status signals that give you a professional identity.
As a solo 1099, you sort of lose those visible status indicators.
In fact, just like Josh, it may look like you moved down the status ladder even though you have no boss, make more money, and have more free time!
If you do decide to go down the solo 1099 route and you are used to getting professional respect via your employer's brand, just be aware it might sting a little a bit when you switch from Deloitte to You Consulting LLC.
Take solace in the fact that while your peers are stuck working on a proposal they don't care about, you are earning an extra $50,000 a year and taking Friday afternoon's off to take a nap.
Want the full playbook? Check out Going 1099.