The most reliable way to generate wealth is to own your own business.
I grew up around successful business owners. My grandfather started many companies through his life, the one that lasted the longest (and was the most profitable) was a garbage company. Waste management, garbage collection and disposal, is huge business. My parents run a commercial concrete company. I got into the next best thing: Information Technology.
When I enlisted in the U.S. Marine Corps, just like every other recruit, I had to take the Armed Services Vocational Aptitude Battery (the ASVAB). My scores were high enough that I could pick any career field open to enlisted Marines. When my recruiter asked what sort of military specialty I’d be interested in, I was smart enough to say: “Uh, something in computers I guess.”
My Marine Corps basic training left me with the confidence that I could take on any challenge, my technical training was sufficiently difficult that I became confident in my mental abilities. Long story short: I ended up becoming a computer programmer and still do it professionally today.
Back in 1995, I was sitting at work with some friends talking about career options. We were all contract programmers. When you are a contract programmer you earn a portion of the total bill rate, the company (agency) that placed you on the job gets a cut of your bill rate too.
We started discussing our rates, and one of the guys knew what hourly rate they were paying the agency for our labor. We were stunned to learn that we were getting just over half of the total bill rate as 1099 contractors (no benefits or tax withholding). Something snapped in my brain.
I have no problem with people making money off my work, that’s the way the world works, but I do have a problem with them making the same amount of money that I do for just making a phone call. But at the end of the day, the person with the connections wins.
I started developing my network by attending professional workshops, training, networking events, etc. When I made the decision that I was going to go out on my own, I started floating the idea to the company I was currently contracted out to, to see if they’d be interested in keeping me around and paying a lower hourly rate. They were interested and would go to bat with me when I broke it off with the agency.
Not only did I stay there, but they let me bring in more people. I only took about $10 off the top of each person, and every programmer I had working on the contract was 1099 to me. They got paid when I got paid so I didn’t have to worry about being out of pocket a ton of money every few weeks.
Over the course of about 4 years, we grew to about 40 people on contract. If you do the math, that means I was making about $400 an hour off the contractors I had working in the field, and they were happy that I wasn’t ripping them off.
$400 per hour, about 1600 billable hours a year, comes to a gross of about $640,000 per year to me.
Starting and running my own IT Recruiting Agency required some serious hustle: lots of driving, emails, phone calls, 24 hour coddling of clients, finding programmers (which can be a temperamental bunch), interviewing, connecting, follow up, invoicing, collecting and paying up.
I fucking loved every minute of it.
Then one day I didn’t. I had married the wrong person, for the wrong reasons. She was in love with the money, but not in love with the fact that she had no control over me and my hours. Her own insecurity and fucked up childhood led to her not trusting me being out all the time. She complained that I was always at work.
So I shopped my company with a business broker and sold it within a few months. I cleared about $400,000 from the sale after paying fees and closing out open accounts, turning in my Mercedes-Benz that was on lease, and buying out the a beach condo that the company owned.
In the end it wasn’t a bad deal. I started with a $500 investment to form the company, buy some business cards, and general liability insurance.
Starting Your Own IT Recruiting Agency Is Even Easier Today
I don’t know if you were around in 1995 or not, but the Internet wasn’t as awesome as it is today. We didn’t have sites like LinkedIn to mine for leads and programmers, we had to lease really expensive resume databases, then cold call all damn day.
I am preparing a course that will walk you through in precise detail everything you need to do to start up your own agency. If you are interested in staying updated on the course progress, and when it will be released, please enter your email address below.