A little backstory:

I work at a small software startup in NYC. For the most part I Like the people I work with, the job itself is decent, but to be frank I don't see our company going anywhere. If I had to bet, I'd wager that we'll likely be out of business in a year, maybe a year and a half. Needless to say, I've been keeping my resume polished and my eyes open for better opportunities should they arise.

Which brings me to my current dilemma....an old friend of mine from college just started his own software startup out west. His cofounder is apparently pretty well connected to the VC / Angel Investment community out there, and they are in pretty good shape to secure a couple hundred K in seed funding, which should hold them over for at least a couple years or so.

When he was first doing the initial specs / laying the groundwork for his company we talked /bounced ideas off one another on chat for a while, and now he's proposing that if I'd like I can join the team remotely as a developer after they get funding. Then, once my lease is up, I can move out west if I'd like. The only catch is it'd likely be taking a decent paycut, I'm not sure of the exact amount however at this point.

Which brings me to my question... how much of a paycut would you be willing to take to work from home? 10% ? 15%?

I'd save a decent amount monthly on commuting / eating out for lunch everyday (yeah I know I can pack a lunch but w/e)
I'd save a lot more time not commuting
I'd save a lot in sanity not dealing with people I cant' stand / politics in the office
I'd likely get a better equity/options deal than at my current job.
Company is more promising, located in better area of the country for software startups (imo)

buuuutttt..... I'd be taking a decent paycut.

I'm a single 20 something guy with very little expenses so its not that big of a deal, but how much is too much? what say you OT?

Lots of other factors to consider.

i.e., taking a 15% paycut on a 50k a year salary is a pretty significant loss as opposed to a 15% paycut of a 200k/year job

How valuable is it to not have to deal w/ people like losers/scumbags/etc?

Are you over-estimating the appeal of working from home? I.e., being alone and lacking human interaction, having the discipline to not slack off during 'work-time', etc.?

paycut but get in on ground floor of company? or just a paycut lol. if A I say go for it. sounds cool

You gotta first figure out exactly what the paycut will be once you factor in all of the savings that offset the paycut because you won't be commuting, etc etc.

Also, have you discussed your growth potential in the new company with the employer?
Are you willing to move out the California if need be?

Once you know all of this, you probably won't need OT but if you have a specific paycut % and a better idea of potential growth, you will get more informed answers.

GL either way!

Would you be able or want to move somewhere cheaper than NYC immediately to save some money?? Sounds like you don't have alot of expenses anyway so not sure how important this would be, etc.. How much do you value working in an office environment vs. working on your own at home (think you answered that, so this seems like a plus).. If you do not have a significant other though, and are looking for one, going to the office at least gets you out of the home and in contact with women..

As was already mentioned there is a huge difference in losing money if you are just scraping by vs. being able to afford a paycut.. If this is a much better situation for your sanity and can afford the pay-cut would say this quality of life is more important than immediate funds, especially if the experience would help your future resume if things do not work out with the job change.. I would attempt to negotiate for more equity/options if you were going to do this than you currently have as this could be a huge financial boom and if you can afford to live with the pay-cut sounds like a decent opportunity for someone in your situation..

Good question, and I'm sort of in the reverse situation. I travel quite a bit for my job, but I'm allowed to telecommute when I'm not on the road. My company asked me if I would be interested in moving to the DC area. I told them that it's an option, but that I would need a significant pay increase to do that since I'm not taking a loss on my disposable income coupled with the inconvenience of going into work every day, just to move up there.

Towards the end of my MBA program, which I finished a few weeks ago, a bunch of us talked about how valuable working from home is. Just as an example, I said that I would hypothetically take a job for $100k if I got to work from home as opposed to a job that paid $120k if I had to go into an office every day, particularly given the fact that I do get to get out and about through all my work travel.

Some of my classmates said that working from home is worth $10k/year, others said $20k/year, and a few even said that it wasn't worth anything at all to them and wouldn't even consider it a perk to be able to work from home.

Like some people said above, it really depends on how much you personally value it, as well as how much you make a year.

Personally, I love working from home. It takes some self-discipline, but I'm way more efficient this way.

Working from home doesnt appeal to me. I do it out of necessity on occasion but i wouldnt want it to be my main gig. I like going into the office to do my thing and the work folks although a pain in the ass at times are a form of social network. I like being able to walk away from my work place and come home to a different environment.

i do work from home so wouldnt take any pay cut.

It has more pluses then minuses, so would say at least 10%- prob 20%. Save that on commuting and eating from home anyways.

Why is the question about a pay cut to work from home when it sounds like the new company/lower pay has much better long term prospects? If that's true and you can afford a short term pay cut for long term benefit, why not do it?

I would need a pay increase to work at home...

I have been working from home for the last 10 months now. There is really only one down side so far, and thats no interaction with work people. The guy/buddy I kind of work for. Only calls if there is a problem or if I can pick up the slack of the others doing the same work I do. So 99% of my time the only people I talk to or see are my wife and kids.
I find I work alot more efficient from home even with the kids and the wife around. Other upsides are its pretty much your own schedule. If I want to dick off during a nice day and go golfing or take the kids out I do. As long as i meet the work order deadlines i am gold.
So I guess it comes down to, do you mind spending alot of time alone? OR do you need people around. Are you self motivated ,or is that having to show up at work at 8 every morning a good thing for you?
Of course in your situation it sounds like you have a good chance to get in the ground floor of a company. That Would be more of the reason I take the pay cut instead of working from home part.
As for me, I love working from home 10000x better then from an office, Alot less hot chicks at home tho.

the only issue i ever see from working at home (online that is ) is motivation and commitment. i can put off work stuff when i feel like it. if i need to poop and feel like reading the paper i could do it,instead of a shit-n-git. also time just completely is lost for me after a few weeks. after a while i won't leave the house unless it is absolutely necessary. what i think i am trying to say is the mentality can become "fuck this, i don't feel like doing this right now. i wish i was at the strip club." and off you go to spend the next day in agony from the free chili cheese fries,cheap beer and broke.once again getting nothing done.

my vote is to totally go for it! i am serious on all points btw.

Adjust to the term...."out of sight and out of mind".

Seriously, very few are cut out to be truly effective and work 100% from home. It sounds like a dream but honestly it is not.

 

Originally Posted by FouTight

i took a payraise when i decided to work 100% from home... ur doing it wrong?

FAIL attempted brag, lol.

If your current job is likely going to be no more in a year anyway I don't see how you can pass this up. Plus your hours will be more flexible, you'll be able to get shit done around the house during down time, you'll save a stupid amount of money on gas and food, and you'll be moving to work with real people soon anyway so the isolation problem will only be temporary anyway.

Also, you never have to wear pants.