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THE RED PILL The Truth about Self-Unemployment
15

Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

Jun 27, 2015

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For folks battling paycheck-addiction. David Bloom, a coach for www.gleq.org, debunks common W-2 myths, and spells out the economics of employment, contracting, and sole-proprietorship. Red Pill applies to anyone entering the 21st-Century workforce of "free lances" (mercenaries), "Bobs" (Office Space consultants) and "furita" slackers.
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Page 1: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

THE RED PILLThe Truth about Self-Unemployment

Page 2: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

DISCLOSURE

I am not an economist, an accountant, or a finance guy

I am not a lawyer, nor do I play one on TV Hulu

I am not selling anything - merchandise, drugs, religion

I am not recruiting for Factotem, GLEQ, Iluminatus, ...

I am a capitalist, and so can you! Oh yes you are!

Use as directed. This offer not available in stores. Void where prohibited. Professional driver on closed track. Don't try this at home. If erection lasts more than 72 hours, see someone.

Page 3: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

WHAT DO YOU WANT TO DO?

Not what you’re doing (unless you love it)

Not what you used to do (unless you miss it)

Not what you did in school (unless you’re the prof)

Not what somebody else is doing (DWUD)

Not what somebody else said you should do (SOS)

Not a fad; makes you mad; feels bad; or to pay for the pad

Page 4: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

UNLESS YOU’RE THE LEAD DOG, THE VIEW NEVER CHANGES

E

IS

Bm

ore

str

uct

ure

more money

Page 5: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

HOW DO YOU WORK?

Work at a set time/place vs Work anytime/anywhere

Work on a timeline vs Work til you’re done

Work with customers vs Work behind the scenes

Work on a Team vs Work alone

Manage work vs Execute work

Start stuff vs Complete stuff

Page 6: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

YOU ARE WHAT YOU DO

E

SI

B

more gumptionless gumption

less

co

ntr

ol

mo

re c

on

tro

l

Page 7: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

WHAT DO YOU LOVE?

“I woke up with a smile, thinking about ...”

“I can’t wait to get to work, cuz ...”

“This is the best part ...”

“I feel joy when I ...”

“I love to ...”

(This is the only slide that really matters. If you were torn between going to Red Pill or going to the “Watching the Watchmen” program in Atlantis, you can go now.)

Page 8: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

SO, YAWANNA FREE YOUR LANCE?

E

IS

B

Page 9: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

Team

YOU’RE THE MAN NOW, DOG

BSystems

Accountability

Sell

TeamTeach

Page 10: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

WHERE DO DALAS COME FROM?

Purchasing “Real” Property

Renting/Leasing Property

Licensing IP

Service Providers

Consultants

Bullshit

Page 11: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

Cost of Goods & Services

Profit - on CoGS

Cost of Sales

Cost of Account Management

Overhead

CoGS

ProfitCoS

CoAM

OvHd

WHERE DO THE DALAS GO?

Page 12: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

TACO BELL

E S B IHealthcare $200 $400 $400 $400

Real Estate $200 -$200 $400 $0

Transport $0 -$200 $0 $0

Security $400 $0 $0 $50

Liability $400 $50 $200 $200

Page 13: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

SHE CHARGES WHAT?!

Employee salary = $80K/year

Employee effort = 2K hours/year

Hourly wage = $80K/2K = $40/hour

Cost to Employ = 25% wage = $10/hour

Employee burn rate = $40 + $10 = $50/hour

Opportunity cost = 2x burn rate = $100/hour

Opportunity + burn = $100 + $50 = $150/hour

Page 14: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

DO WHAT YOU LOVE

“I woke up with a smile, thinking about ...”

“I can’t wait to get to work, cuz ...”

“This is the best part ...”

“I feel joy when I ...”

“I love to ...”

Page 15: Red Pill - the Economics of Sustainable Self-Unemployment for Recovering Paycheck Addicts

DAVID C. BLOOMwww.davidcbloom.com