When to quit your 9 to 5?

West · #1 (**permalink**) 07-31-2007, 12:05 PM

For those of you who make a full-time income online:

Once your website became successful, how long did it take you to decide that you no longer needed a traditional job? Did you have any concerns about how long the success would last?

lisa · #2 (**permalink**) 07-31-2007, 01:26 PM

I've always been extremely cautious with my spending and even though I was making a full time salary online in 2004, I didn't quit my 9 to 5 until 2006. I wanted to make sure I was comfortable with what I was earning. Some people quit when they're making just enough to get by and I think that's dangerous. I like to have a padding.

You need backup revenue, multiple sites, etc. for the down periods. My income fluctuates from month to month and I wanted to make sure that my low months were still comfortable for me before I quit. That's how I decided when it was time.

And I still remind myself all the time that this is the internet and things can change so I am always trying to find ways to create new income streams for backup. I've heard too many nightmare stories of people going out and blowing their money and then when Google drops their site their screwed and had to go out and find another job. You definitely need to plan ahead and never assume it will always last.

ppcFanatic · #3 (**permalink**) 07-31-2007, 01:37 PM

Good topic West.

So true Lisa. Like you, I wanted to make sure I was comfortable. I didn't quit until I was making double what I was making at my 9 to 5. Multiple income streams is important, especially if your revenue is largely dependent upon the search engine traffic. What if Google brings you 90% of your traffic and drops you for 6 months? These are things you need to think about.

That's why I'm working on another content rich site in addition to my PPC advertising. Even though money's OK, I still want to have another padding for backup.

I remember with the dot com boom in the early 2000's there was a young guy who had made like $30,000 in one month with the Net Detective affiliate program. He bought a $75,000 car and 2 months later, his site dropped in the SERPS and he had blown all his money. I've heard numerous stories like that where people get too comfortable. You always have to keep re-inventing yourself out here or you'll get left behind.

It's also good to try and find residual affiliate programs. Domain and web hosting reseller programs are great because if you build up a large customer base you will still earn residuals on your existing customers even if you tragically lose your traffic.

webdev · #4 (**permalink**) 07-31-2007, 08:30 PM

wow! this is something i never thought of. What happens when your business looses customers or in this case your site loose search engine traffic?

Lisa and ppc, would you say that you could see yourself doing this for the rest of your life.

The reason i ask is because sometimes i have 2nd thoughts of becoming a full time affiliate. I don't want to loose touch with my own field (software development and programming) because i'm sure at one point i would want to go back to it. So, I’m hoping that i could keep doing what i love (programming) and make extra income online. But if i could combine both together, that would dream come true for me

lisa · #5 (**permalink**) 07-31-2007, 08:48 PM

Quote:

Originally Posted by webdev

Lisa and ppc, would you say that you could see yourself doing this for the rest of your life.

The reason i ask is because sometimes i have 2nd thoughts of becoming a full time affiliate. I don't want to loose touch with my own field (software development and programming) because i'm sure at one point i would want to go back to it. So, I’m hoping that i could keep doing what i love (programming) and make extra income online. But if i could combine both together, that would dream come true for me

I can't imagine having another job. I can travel when I want, work when and where I want and I'm doing what I love.... writing and helping people. I may decide to do some consulting in the near future but for now I'm plenty busy with affiliate marketing.

When I was still working my 9 to 5 in addition to doing affiliate marketing, I was burned out. I would work 40 hours per week and then come home and work another 30 hours per week on my sites. It was too much and I had no interest in "climbing the ladder" at my 9 to 5 so I was very bored there.

At least with affiliate marketing I am in charge of my own destiny. Are there risks? Of course, but there are just as many risks in the real world with layoffs, downsizing, etc. As ppc said, residual income is key. Even if Google dropped all my sites today I was still earn enough to live thanks to the programs that pay me residual commissions. That's why I was patient in quitting my 9 to 5. I wanted to have a backup plan and have a decent padding.

Who knows... maybe one day I'll get bored with it but as of now, I can't see doing anything else. In fact, if I had to go back to a 9 to 5 I would need serious therapy.

But I will say, it's not for everyone. Some people need that social interaction and don't like the idea of working from home and being isolated all day. But what's nice is that with affiliate marketing you choose when you work. I work for a couple of hours in the morning, go to the gym, may have lunch with friends, come back and work a few more hours, etc. etc. It's completely flexible.

TechieGuy · #6 (**permalink**) 08-03-2007, 08:59 PM

I think it all depends on your lifestyle. If you a single and making good income online, then it will be easier to drop your 9 to 5 job. You only have to worry about yourself.

When you have a family it is different. It is nice to have that 9 to 5 job as it can provide perks, such as benefits and a pension, as well as provide a steady income, but as Lisa mention, there can also be risks with a 9 to 5 job.

Everyone has different financial needs.

lisa · #7 (**permalink**) 08-04-2007, 10:11 AM

Good points TechieGuy. People with children may also want to take their time with the decision. If you have to pay health insurance for yourself and your children, I've heard that can be quite the expense. And if you're single and don't have the luxury of having a spouse's health insurance plan, then the costs can add up.

ssmorgan · #8 (**permalink**) 08-04-2007, 04:57 PM

A very successful business owner once told me that it's best to quit your day job once you're making 2 to 3 times more from your business than with your day job.

Especially with the nature of a business like affiliate marketing, I would add to the above rule that:

1) I have liquid cash that can support my lifestyle for at least 4 to 6 months.

2) having the confidence and diversified skills to re-generate my current income in a period of 2 to 3 months. i.e. if all my current websites/income generators fall apart, I would be able to independently get back on my feet in 2 to 3 months.

3) Before I quit my day job, I want to be sure that my income grows by 10 to 50% per year (depending on how much income I am making).

Since I have not accomplished any of these parameters yet, they are purely theoretical. To me, if I accomplish all these things, I would not hesitate to quit my day job!

lisa · #9 (**permalink**) 08-05-2007, 11:26 AM

Couldn't agree more, Sherif! And that's why I took my time before I quit. People kept asking me when I was working why I was still working a full time job with what I was making online, and I told them I wanted a nice comfortable cushion and a 6 month to a year emergency fund before I left the comfort of a regular paycheck.

webdev · #10 (**permalink**) 08-05-2007, 07:17 PM

Those are some good points ssmorgan. I don't think i would quit what i do. When i create a comfortable income online, I might start doing freelancing or start my own web development business on the side.

WB Sponsors