Re: Can't Say I Am Surprised (ESPN)
posted at 5/22/2013 9:20 PM EDT
An aside about 1099 employees...
For people that know how to do it, it can be very profitable. Here's a personal example:
Was a Company Driver for a pharmacy. The decision came down that they were now going to outsource all deliveries, and would be laying off all drivers (6 of us). I was the new guy, and had been there only a few months.
I took a position (route) with the transportation company. It was the exact same work I did while an employee. 1 other driver made the same move. Except, now:
-I make MORE money
-I do LESS work
Why does it work out this way for me?
1) My significant other works in healthcare, and I am covered on her insurance.
2) I drive 2 station wagons, a 1996 Volvo 850, and a 2000 Subaru Legacy. THey have about 165k, and 172k miles, respectively. They cost me a total of $4300. THey have been running for a combined 18 months and helped me make around 75k. Only upkeep has been an exhaust repair, and rear brake job on the subaru. They both run well, and I should see them each well into their 200s. THey are basically printing money for me.
I went from making roughly 28k a year, to now 50k (after factoring in gas). The ONLY difference is I have to drive my own car. As noted above, I've put myself in a position to not lose money on that end. Many other couriers I see drive FAR newer cars, and whine all day about maintenance costs, insurance, and car payments. They aren't doing it right, not even close.
I once lost a job 2 weeks after my 5 month old daughter had open heart surgery. It's a cruel, cold-hearted world. You do the best you can, and if you have a conscience, you don't do it to anyone else.
It's frightening and intimidating to be 'self employed' when all you've known is a comfortable W2 paycheck. After educating myself, feeling stupid, and making some early mistakes...it's been fine. In fact, I've come out WAY ahead. My former coworkers at the pharmacy are all a mix of happy for me, and jealous.
As for the other driver? He'd been there for 15 years, and was making WAY more than any other company driver I've ever heard of. So, for him, it represented a slight paycut, but almost a lateral move.
1099 contractors are where many companies are turning. It's very low cost to get yourself a DBA (Does Business As), which then makes it possible for you to do contracting work. LLCs are decidedly more expensive and inclusive, but not usually needed for contract work. So, even if some of you have regular jobs...might not be a bad idea to go spend the $20 or so it would cost to file your DBA in case anything ever presents itself, or forces you to change.