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Making the Leap from Employee to Self-Employed

A poster in the Webmaster World forum asked this question: should he quit his 9-to-5 job and focus on his web site? His dilemma is a nice problem to have — a site that he started simply as a hobby became wildly successful that he is now part of the so-called UPS Club of the Google Adsense program (an inside speak referring to those earning at least $10,000 a month from the contextual advertising program Adsense). As a result, his 9-5 job now makes up only 25% of his total income, with the remaining 75% coming from his web site which only takes up a few hours of his time a week. Should he then give up his day job to concentrate full-time on his web site and rely on his Adsense income?

The answers are varied and interesting.

The risk-loving folks advice that it’s a no-brainer: quit the day job and instead focus more on the web site. Go where the money is. For them, it doesn’t make sense to spend so much time on a full time job — while giving the false impression of being “secure and stable” — gives little in return.

The others caution him to weigh the decision more carefully. Other than the revenue stream, he should look at a variety of factors, foremost of which is the sustainability of the program. Will Adsense last? What if he gets kicked out of the program and as a result loses his only income? They also advised him to ensure that he has at least 6 months of salary stashed somewhere in case of emergencies, as well as health insurance coverage, and support of the family.

Making a decision such as quitting a job to concentrate full time on a business is no walk in the park. Afterall, it is a life-altering decision! Leaving a full time job can be a result of the person’s need for a new lifestyle, to augment existing income, to be with family, or simply to do what brings more happiness and enjoyment.

The key is to actually know what you want out of your life, check if the life of a solo entrepreneur is for you, assess the kind of risks that you want to take, and know the challenges that lie ahead. PowerHomeBiz.com offers a number of articles on the topic, and a good starting point is the article by George Rodriguez article Changing Track: Managing the Transition from Employee to Self-Employed