Going 1099 is a book that teaches you how to become a solo federal sub-contractor and gain control of your working life, earn more money and unlock more free time. I wrote it because quite a few people have asked me how they can become a 1099. I figured it was best to write a single book that I can send them and that I can share with others who are interested. This newsletter goes out Monday - Friday and covers topics that will help you succeed in starting and maintaining successful 1099 career.
When the prime plays hardball
On of our projects, the government client wanted to bring on one of our current employees. No problem, we submitted a high but fair billable rate to the prime PM. This rate is just a bit below what my partner bills and is in the same LCAT. The prime sent back a low-ball call counter that was 30% lower. What my partner did at this point was to text the government client and update him on the situation. The client said that in these situations the prime usually just cautions him about paying too much and then he just approves the rate anyway. So we stuck to our guns. I don't know how this will turn out, but we suspect the prime (a private equity backed mega-corp) is just trying to improve their bottom line off the backs of their subs. It's not personal. But if you're new to the 1099 world, you may not be used to a prime trying to take advantage of you and you may get insulted or just write them off entirely. The best thing to do in these situations is to make sure you have and use your leverage. In our case, it's a good relationship with the government client. In a solo 1099 situation, you can have a good client relationship but you can also get leverage by finding alternate projects, having a good amount of savings, or just be willing to stay where you are. No deal is better than a bad deal. So don't get thrown off by "hardball" prime negotiation tactics. Keep calm and carry on. If you're interested in learning how to get your first solo 1099 federal sub-contract, check out my book: |
I'm Dale, the author of Going 1099
Going 1099 is a book that teaches you how to become a solo federal sub-contractor and gain control of your working life, earn more money and unlock more free time. I wrote it because quite a few people have asked me how they can become a 1099. I figured it was best to write a single book that I can send them and that I can share with others who are interested. This newsletter goes out Monday - Friday and covers topics that will help you succeed in starting and maintaining successful 1099 career.
If you are friends with Maverick, maybe he'll tell you about his MIG encounterSource One of the primes I work with has a director that is good friends with the client. The client feeds information about problems or issues back to the prime before it gets escalated, allowing them to prepare for or address it before hand. Is this shady? No. These are the informal channels of communication you can open up if you have good relationships. I only know about this because I met with the prime program...
Okay maybe Google's cafeteria is a nice perk of W2 life....Source One of the reasons you can earn more money as a 1099 than as a W2 employee is because your personal cost structure are likely way lower than a company's cost structure. As a 1099, you don't need a fancy office, an HR person or middle management, a company Christmas party, boring annual trainings, or free coffee. Okay free coffee is nice, scratch that. But this infrastructure costs money, and while a larger company may need it,...
Me enjoying the workplace dramaSource I just met with a friend who is a deputy PM for a contract. He mentioned some drama with a few of his employees on the contract (HR complaint, desire for recognition, etc.). These employees give him headaches, even though the work is acceptable. He said if they would just do their work and keep their head down everything would be fine. You, as an aspiring 1099, could have an advantage if you're known for simply being a quiet professional. If you just do...