Jim Johnson explains how to run a business with independent contractors instead of employees. You need to know the law and avoid too much control. Most companies eventually hire W2s anyway, like a $37M firm that converted 50+ contractors with just one objection.
Approximately $37 million.
50+ salespeople.
One person.
Well, could you still effectively run 1099? For sure. You just better know the law and what kind of control you have and don't have. Creating a the culture that attracts a certain type of person to that is possible, but it's difficult just is to go the employee route. Yeah, there's some costs with it, but it's not anything insurmountable. I've had several of my companies convert over to W2 and one just went through it and they're not little $37 million company. They just had the conversation last week and I think out of their 50 plus salespeople only one guy has a problem with it. That's pretty cool.
