Making Career Decisions

So far we have been looking at job types in a two dimensional. In our 2d model your job is in the same position on the chart no matter your abilities for the given job type. The 2d model is good for understanding why you are making money, but it doesn't help determine how to make more money. For that we will need to look at the same chart in three dimensions.



We now hove a qualitative quotient rising vertically from each of the job types. In each case the vertical factor represents qualities which increase the attractiveness of your work to those who will be paying you. For example, a professional musician vs. an amateur.

In order to use this model to maximize your profitability we are going to need to find what jobs we are able to do and choose the best selection of to maximize the pros for each job type, while minimizing the cons.

I start by making a list of which skills and abilities I have, some major personal characteristics and things which I can make. I rank each of those abilities based on how much I think someone could potentially pay for each activity.

What I do :

• Programming (8)


• Wood Working (4)


• Network Security (5)


• System Administration (7)

What I make :

• Informative websites (7)


• Cool Program (9)


• Wooden kids furniture (5)


• Digital drawings (5)


• Cooking (2)

Who I am :

• College graduate (7)


• Son of well respected man in my home town (9.5)


• Young conservatively dressing tall man (7)


• Yet another personal financial blogger (4)


• Eagle Scout (10)

Now I plot them on the chart (either for real, or just in my head).



After listing and ranking my abilities, I add which abilities I would be interested in improving and to what level.

System Administration (9)
Wood Working (8)

Based on my chart I can see that I currently could probably make a cool program and provide something which is in higher demand than my current programming position.

In order to provide a more demanded skill in System Administration I would need to improve my skills a little bit -- maybe take a class, or study online.

To maximize my income right now, I should make a cool program. If I would rather maximize my income by doing system administration, I should improve my skills enough to command a higher salary.

To be good enough with wood working (Which I enjoy), I would need to get a lot better. If my life dream were to support my family as a wood worker then such improvements might be worth their effort. Since that's not my dream, my self improvement time could be better spent elsewhere.

Odds are good that you too will have several skills which will are in higher demand than others. Besides just trying to maximize your income, be sure to also consider that certain skill groups (eg. Programming + System Administration + Network Security) may prove more valuable as a cluster of abilities than a single higher valued skill (eg. Writing a single cool program). Also balance the different positions with the pros and cons discussed in part two in order to find a level of job security and type of job risk you are comfortable with.

Conclusion

This isn't the be-all end-all theory for deciding what to do for work. No model is perfect, and making the most money isn't the most important thing in life. What this model can do though is help you visualize potential areas to improve your income, and help you find ways out of a field you're not enjoying.

Why You're Paid Job Model (Part 2)

Yesterday I talked about my theory on jobs. Today I'll discus the pros and cons of each of these job types.

Who You Are

Pros:

People find some quality in you which is worth paying you for. It is likely that you enjoy who you are, so work is probably enjoyable on some level as well.

If your are paid for the mental or creative side of who you are, you may be able to continue your job after physical disasters.

There is only one of you (limited supply), so if you are popular enough (high demand) you can charge top dollar just for showing up.

Cons:

It may be hard to break your stereotype if you want to change what you do. Eg. A famous baseball player is going to have a hard time being recognized as a serious CEO. He will always be a baseball player who is also a CEO.

You can only be in one place at one time. This limits how much you can make from speaking arrangements, CEO positions (one at a time probably!), concerts, etc. You may be able to overcome this through What You Make.

If you are paid because you are a famous singer and dancer and suddenly can't sing and dance, you will find yourself out of a job.

People are ficle and may change their minds about who they like.

What You Do

Pros:

If you like what you do and are getting paid for it, that's terrific.

If you are better than average at what you do or poses a skill most people don't (limited supply) that enough people want (high demand!) you may be able to command a larger income.

Depending on your skill you may be able to do extra consulting outside your normal job.

Cons:

Many 'what you do' positions are warm-body positions that don't require any skill. Low level programmers, burger flippers, etc. are all easily replacable.

You can only do one thing at a time. This limits how much Doing you can do. Again, you may be able to overcome this through What You Make.

If your skill is boring you may not feel as fullfilled as you would doing something which would make you less money.

What You Make

Pros:

Factory made items and easily copyable items (eg. software) can be created in whatever quantity needed to meet demand.

If you get paid for Who You Are, you may be able to produce CDs, Videos, Books on Tape or other materials that serve as a proxy of yourself.

If you get paid for What You Do, you may be able to use those same skills to create something which can be replicated and sold (eg. software, art prints, etc.).

If you create something which can be sold again and again (eg. art prints), you can bring in money for a long time after the initial work is done.

Cons:

Custom work and hand-made item production don't scale well.

Anything which depends on the whims of fashion can't be counted on as a long term plan.

If what you make is easily replicatable there will be imitators (excess supply) driving down prices.


On Monday: Using this job model to maximize your income and make career decisions.


Part One : The Why You're Paid Job Model

Why You're Paid Job Model (Part 1)

This is my job model. There are only three reasons people pay you:

a) Who you are (celebrities, famous speakers, successful CEO, etc.)
b) What you do (Flipping burgers, programming, etc.)
c) What you make (Books, music, programs, etc.)

Any given job can be a mix of the three. Each of these pay-reasons has different benefits and down sides to it. We'll hit the benefits and downsides tomorrow. Today, an explanation and examples of each reason.

Who You Are

If you get paid because of your reputation, looks or past successes then you are paid because of who you are.

Examples of Who You Are Jobs

Paris Hilton - No redeeming qualities whatsoever.
A successful CEO - hired for his name so that investors feel comfortable with the start up company.
Steve Jobs - People hang on his every word because he's Steve Jobs. Any other Apple employee making the same announcements wouldn't draw the same interest.
Programmers - When they're paid because they're famous (eg. Joel Spolsky)

What You Do

If you get paid for showing up, for doing specific tasks or serving people you job includes What You Do elements. Examples of What You Do positions include:

Examples of What You Do Jobs

Garbage men
Programmers -- when programming for pay
Burger Flippers
CEOs who can actually turn around a company
Clowns
Skilled laborers

What You Make

If you are paid for the product, art or other creation of yours, your job is in this category.

Examples of What You Make Jobs

Artists (unless their art sells because they're famous)
Woodworkers
Programmers -- when selling a program they've created
Skilled laborers


Tomorrow I will discuss the pros and cons to each of these three pay-reasons.

Part Two : The Pros and Cons of Each Job Type