Thread by @BowTiedElephant

A CAREER is where you trade performance for money

Let's see how a career is better than a job

THREAD 👇

A career is a performance based position

Do not be fooled by high salaries or high hourly wages

Even if you’re making $100 an hour, that is only $200K per year

The Company will do everything in its power to prevent you from making more money than that

The deadliest company trick in the book is paying someone *more than they are worth* in the early years (22-27 years old)

Then... proceed to pay them *less than they are worth* as they remain at the Company

This is a classic move done in high salaried positions such as consulting.

Dangle the carrot of making partner, burn them in their early thirties

One out of ~40 make the partner jump and get that equity

You see this trick time and time again in many industries

Reiteration:

A career is a performance based position

Many careers (pure sales in particular) provide extremely *low* salaries with large performance upside

Think 30/70 split where 30% of your compensation comes from salary and 70% comes from performance fees on a quarterly, semi-annual or annual basis

Absorb the pain

The beauty of a sales role is that the skills are transferable into *any* industry!

If you're good at sales you will always have income

If you can convince someone to give $50K for a B2B product, you’re going to have no problem selling cars if you hit a rough patch in your life

The second variation of performance is *equity*

This is where the engineers come into play, not the ones who work solely for a capped salary

Equity is just a cute word for ownership

You are in a performance based position because your net worth is directly tied to the valuation of the Company you work for

If you can expand the Net Income line by $100K... and it obtains a 10x earnings multiple... That’s a million bucks

Just make sure you’re able to negotiate a fair slug of equity so you get more than $2 of that $1M valuation increase