whether to keep selling my time or own something. These are the questions I’m asking myself.
I'm a freelance developer, and I haven't figured this out. This isn't advice. It's a decision I'm working through, and if you're a developer or thinking about starting something, it might help you think through yours.
Who this is for: developers weighing client work against building their own thing, and anyone thinking about starting something.
Why it's on my mind
I've always wanted to build my own things. The problem is that building costs money, and my income comes in cycles. The tools and subscriptions I depend on aren't cheap either, so a quiet month hurts.
That's the squeeze.
Client work
Pays for my tools.
Building for myself
Pays nothing yet.
A different way to get paid
A friend told me he holds 1% of the company his boss is building. My first reaction was that 1% sounds small.
It depends. What the company is worth or could become, how the share vests, and how much it gets diluted later all matter. 1% of something that works can be meaningful, and 1% of something that doesn't is nothing.
I'm not a financial or legal expert, so anyone offered a share like this should get the terms in writing and read them with someone who is.
What caught my attention wasn't the number. It was the model: a stake in something that keeps earning, instead of being paid once for work and then watching someone else collect the value.
The subscription angle
Many of the tools we use run on recurring pricing rather than one large fee. I can see why it appeals to the person building.
Why it appeals
- Steadier income
- The price can change when costs or the market change
- A one-time fee is locked in the day you agree to it
What it costs
- Customers have to keep seeing value, or they cancel
- Some clients simply prefer to pay once
The questions I'm asking myself
- What do I actually own when a project ends? The code, the client relationship, anything?
- If my biggest client left tomorrow, what would remain?
- Could one project use partnership terms (equity, profit share, royalties) instead of only a fee?
- Could part of my client work become recurring, such as maintenance or a monthly retainer?
- What's the smallest version of my own thing I could test without giving up my income?
- How long could I go with no income, and what would I cut first?
What I don't know yet
I don't know how to value a stake someone offers me. I don't know how recurring pricing fits clients who are used to one-off invoices. And I don't know how much runway is enough before putting more of my time into my own work.
Over to you
If you've taken equity, moved to recurring revenue, or started your own thing while freelancing, I'd like to hear what you'd tell someone at this stage. What did you wish you'd known?