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- 7 Figs With 0 Employees
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Today we’ll be discussing how a handful of entrepreneurs are building 7-figure per year businesses with a grand total of zero full-time employees.
In particular, we’ll dive into the Pros and Cons of running a remote team versus an in-person team, and which option you should choose depending on your business and lifestyle goals.
Let’s dive in.
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At dinner last night, a friend was telling me about a college-aged kid who's already making $11,000 a month as a copywriter.
While that story could be a newsletter issue on its own, what I found even more interesting was the fact this kid's company had more than 20 contractors working for them, but zero full-time employees.
While I don’t consider myself particularly old, running that type of business was unheard of in the late 2000s and early 2010s.
Take 2007 for example.
Back then, Zoom didn’t exist, YouTube was brand new, and Apple was still working on the original iPhone.
Fast forward to today and there are now more one-person companies than ever before.
So the question is: Should you build a one-person business?
There are arguments to be made both for and against.
On the negative side, many CEOs have realized remote teams don’t develop the same level of cohesion, trust, or cooperation in-person teams do.
This became especially notable after COVID, when remote work became the norm and very few people were able (or allowed) to go into the office.
Since then, however, an increasing number of companies have begun demanding their employees return to the office. Mainly because the founders at said companies have a staunch belief (and some evidence proving) in-person teams are more productive than remote workers.
That said, most of the entrepreneurs who take a hardline stance on this are startup founders trying to build eight, nine, and even ten-figure businesses.
But for someone who’s just trying to earn Wi-Fi money, the idea of running a remote team without any full-time employees can be highly attractive.
Aside from the fact you won’t have to rent office space, there are a variety of benefits to running a remote team.
First, your talent pool is endless.
Whether you want to hire someone from your home country, Europe, Asia or Latin America, geographical boundaries are irrelevant.
Second, you don’t have to work around a specific time zone.
Yes, client-facing employees will need to work during the business hours of whatever country you serve. However, unlike a physical office, that doesn’t mean everyone has to work the same hours.
In the example my friend was telling me about, the agency's copywriters and media buyers were able to work whenever they wanted. The only thing that mattered was that they turned in their projects by the deadlines.
And it’s not just your contractors who benefit.
From the owner/founder's perspective, running a remote team is dramatically more conducive to building a lifestyle business.
Sure, going this route might not be as productive as having full-time employees come into a physical work space. But what you sacrifice in productivity, you gain in flexibility.
Last, hiring contractors can be more affordable than hiring employees.
From 401K matching to self-employment taxes, the true cost of hiring an employee can be upwards of 10-30% on top of their salary.
Further, you'll want to do things by the books. Especially in the US, where the government is cracking down on employers who attempt to avoid taxes/paying out benefits by hiring contractors instead of employees.*
*Which is a large part of why hiring contractors from foreign countries has become so attractive.
Either way, building a remote team is a legitimate way to reduce costs while increasing your quality of life.
So if your business is at the point where it's time to scale, consider the pros and cons of hiring a remote team before you commit to spending tens of thousands of dollars on office space and full-time employees.
💡 Takeaway: In 2024, there are a record number of 7-figure per year companies with 0 full-time employees. Whether or not you should go this route, however, depends on your business goals and lifestyle preferences.
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