I'm so impressed I want to pay you less

I'm on the other side of the fence. Yes, I could be making more money as a contractor, but that 'job security' that he doesn't see is one of the main things I like. It's -possible- that I won't have a job tomorrow, but it's not really likely. On the other hand, if I were contracting, I'd be in the situation very, very often, and have to find new clients constantly. No thanks.

Of course, it also helps that I like the company I work for, and I enjoy the work. It's got just enough variety that I don't get bored, and it's just challenging enough, too. Every time that challenge has started to disappear, the company has upped their game and the challenge came back. I joined the company at just the right time for me and them both, apparently.

I made a good living as a contractor for about 2 decades, although the aftermath of the .com implosion almost did me in, even though I had nothning to do with it. But I recovered and soldiered on. I finished a lucrative contract Sept 15, 2008. Then it was a year and a half of nothing or jobs tha paid way less than I was used to getting. I could make ends meet if I didnt pay taxes, but you know how that goes.

Then I got a job with a kind of Internet conglomerate. It isnt half bad. The pay plus the bonuses plus paid health care give me an income that's within 10% of a typical good consulting year. The health insurance was a biggie, because I couldnt get it any more. The people are talented and the corporate BS is less than I expected. I cant quite get my workweek down to the 40 hrs that is expected, but no more death marches.

How does someone start to get into the contractor side of things? Are you generally working connections initially? Or are you going via a headhunter/craigslist for contract only gigs?

I just look for 3 months contracts with a hourly rate on jobs listing site (I used seek.com.au)

This current one has been extended twice, 9 months down now.

It does take more responsibility, you have to do your own billing, your timesheet, and be 'more' presentable.

But all that is cheap compared to the price of working longer hours and not getting paid. At least if I work 10 hour day, I bill 10 hours. Also I get to claim so much more at tax time.

PS: to be a successful contractor, you should be good at what you do. As in 'Good' directly linked to your hourly rate requirement.

I should also clarify that it's not all glam. It's not for everybody. You have to be able to make quick and good decisions, code straight from 8am to 5pm with a half hour lunch and deliver. If you're the kind that likes to sit back and "R&D" all afternoon, or take a day to fix a bug, it might not be for you. You have to be productive and make every hour count for your employer and leave the R&D for the evening at home.

All that said, I still love it.

Job security is a myth. You can get fired/laid off at any time, whether you're full time or not. In a few states they don't even need a reason to get rid of you (at-will employment).

I have seen this happen at least twice in the last 5 years. Company runs out of money, a bunch of people get cut. I've seen pretty high level people cut for political reasons. Of course, officially they would never admit that, but they don't need to. As a full time employee you might get a severance package, if the company doesn't feel like dealing with you, but it's completely optional. The only real advantage of being full time is COBRA when you get laid off. Still, it's not worth the salary difference.

I completely agree with the author of the article, being a contractor is totally worth it. I'm in a position right now where my contract is running out, and the company offered me a full time position. I will not take it. I'd rather be unemployed (and motivated to find a better deal) than working for less. Never take a pay cut. Always ask for promotions. (That's if you want your salary to grow consistently).

A word of advice to contractors: DO NOT fall for the daily rate. Hourly is the only fair game. Everything else will land you long unpaid hours. I absolutely love my hourly rate, and if you can get increased overtime rate, even better.