With jobs so difficult to get during this paradigm shift in the economy, communications folks from all generations, Silent to Y, are parachuting into the self-employment space.
Some are having hard landings because they are newbies in the complex web of obligations involved in receiving and giving referrals for work. As a result, like this young entrepreneur featured in PORTFOLIO, they might find themselves stunned. A client lined up new business for him. When that was a wrap, the client stated there would be a 20% cut of the revenue.
To me, 20% seems high. Being so direct about the arrangement seems to lack social intelligence [maybe the client should read "The Social Animal" by David Brooks]. Also, good business common sense would have demanded the fee schedule be hammered out before the business was in the can.
However, the game of providing an advantage involves pay back. We who grew up in an economy of scarcity - e.g. slums of Jersey City, NJ pre-affluence - got that down from the get-go. You never screwed with making timely deposits in the Favor Bank. Reaction would be swift, ranging from having the windshield bashed in to everyone in the neighborhood snickering.
Perhaps those not accustomed to economic struggle carry a sense of entitlement - that they are so wonderful that business should come to them, strings-free. Hopefully, they will learn before they are pushed out of the game.
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