Community as Economic Engine
Laird Schaub and Terry O’Keefe and will be presenting “Community as Economic Engine” at the 2017 National Cohousing Conference in Nashville TN, May 19-21 . Please join us! Laird offered a version to a packed audience at the 2015 Cohousing Conference in Durham.
Intentional communities sort broadly into two kinds: those where members share income (roughly 10-12 percent of the North American field today), and those where they don’t (the vast majority).
In the case of the former, the community takes primary responsibility for the economic welfare of its members. In consequence, the community rolls up its sleeves and develops community-owned businesses, and takes advantage of collective purchasing power to leverage economies of scale to make ends meet. In addition to the day-to-day, this kind of community also provides for member vacations, health care, and retirement. It’s cradle to grave coverage. Members put everything they earn (though not necessarily everything they own) into the pot. In return, the group picks up the tab for all expenses—within whatever boundaries the community sets.
For non-income-sharing communities, however, the collective tends to leave the economics of member households untouched. This is a huge difference.
As someone who lived in an income-sharing community for fours decades (1974-2014) and was a delegate to the Federation of Egalitarian Communities for two (1980-2001), I have deep familiarity with how the collective can partner with individual members to address economic imperatives. In addition, as FIC administrator for 28 years and as a group process consultant for three decades I have visited and worked with more 100 non-income-sharing communities and thus have first-hand knowledge of the economic realities in that milieu as well.
Both because most intentional communities don’t share income and because the potential there is less explored, the primary focus of this examination will be the economic relationship between the collective and the individual in non-income-sharing groups. I’m going to first describe what’s extant, and then attempt to make the case for shifting it to something else.
The Community Lens
For the community, it’s much simpler if its financial focus is narrowly defined: the group will manage the collective assets and liabilities (such as property taxes, infrastructure, and common facilities) and member household will manage themselves. Not only does this protect individual privacy (getting the right balance between group and individual can be tricky) but it’s less work. Members may do a fair bit of expense sharing and collective purchasing, but the group’s interest in member finances tends to be limited to whether the checks for HOA dues clear and members don’t default on their mortgages.
To be sure, if a member gets into financial trouble, the group may rally around them—either collectively or as neighbors—but it isn’t obliged to.
The Individual Household Lens
For the member this hands-off policy cuts two ways. On the one hand it means that information about their financial reality (beyond whether they qualify for a loan if one is needed to buy or build their unit) and their household budget is entirely their business, just as in the mainstream culture.
On the other hand it typically means foregoing one of the principal advantages of shared living: the active assistance from others in figuring things out.
On the expense side, there is considerable room for sharing expenses in non-income-sharing communities, and a good bit of this happens. Perhaps the community has an internal food-buying club or has a link with a nearby CSA (community supported agriculture). Maybe the community owns a single pickup truck or wood splitter that is shared among all members. The group may build a swimming pool, a workshop, or an exercise facility—all of which are likely to be larger and better equipped than what members would build on their own.
But what about the income side? This part of the equation is largely unexplored.
My good friend, Terry O’Keefe, and I have been trying to bring a lantern into this cavernous, dark room. We think non-income-sharing communities are mostly missing an important opportunity to partner with their members, bringing community assets to bear. Our point is not that communities must do this, but that it is a possibility that is largely missed. Often communities are located in places where jobs are poor (which is the obverse of the cheap land coin). If prospective members had help solving their economic challenges it could make a substantial difference in community accessibility.
When Terry and I conducted a workshop bearing the same title as this article to a packed room at the 2015 national cohousing conference (in Durham NC), these questions bubbled up in the audience:
1. When does it make more sense for the community to own a business, and when does it make more sense for individual members to own it?
We suggest looking closely at two sub-questions:
a) What structure gives you the best chance of manifesting the management energy needed? Keep in mind that possessing a great commercial concept is not the same as possessing great management skills, and neither is the same as business savvy (though there is definitely overlap). Thus, people with sound business ideas often need help (whether they know it or not) with:
—Developing a viable business plan
—Securing start-up money
—Finding a qualified manager or management team
—Creating a marketing plan
—Identifying personnel needs (how many and with what skills)
b) To what extent are you open to fellow community members as a potential labor force? This question excites us a lot because of the potential for entrepreneurs (the ones who cook up business ideas) to partner with their non-entrepreneurial neighbors (who are looking to supplement their income but are reluctant to start a business). These two segments coexist in almost all groups and are often at odds with each other, because of the strong tendency for entrepreneurs to be risk tolerant while non-entrepreneurs are risk averse. Here they can make common cause.
2. What advantages might communities businesses have in the marketplace?
—In communities of size there typically exists an amazing pool of skilled, motivated people available on site to help you with most aspects of business development. It’s an untapped gold mine.
—Building (or at least enhancing) community can be an explicit byproduct of doing the work. Given that your people value the community (and the connections) this significantly boosts job satisfaction and morale (which translates directly to better attention to detail, fewer mistakes, less absenteeism, more pride in the work, less turnover).
—If the business is owned by the community (and members are the workers) there will tend to be enhanced motivation and satisfaction from that fact alone. (There are any number of jobs I would gracefully do for my community that I would never do for wages.)
—Healthy communities tend to have superior skills at communicating and working constructively with conflict. This can make all the difference in terms of job satisfaction and can be readily parlayed into superior customer service.
—Communities tend to be more collaborative (and less hierarchic). To the extent that this obtains, problem solving becomes an all-skate activity (not just something management tackles). In addition to enhancing morale, it leads to more creative ideas and better problem solving.
—Community-based businesses can often be more fluid about part-time work, flex hours, day care on the job, costuming, and working at home.
—You’ll tend to get more people who will volunteer, because of the values you represent and how it helps the community.
—There will also an opportunity advantage among customers who value cooperation. Potential customers within your service area who value community will preferentially give you their business. While there will be limits to how much they will be willing to pay a premium for your product or service, they will at least prefer you when price and quality are comparable.
—Your labor pool itself may give you an advantage. For example, my long-time community (Sandhill Farm) produces sorghum syrup. While our neighbors could grow sorghum just as easily as we, they didn’t have the labor to do the work and couldn’t afford to hire it. Thus there was virtually no local competition for our product and we get the business from all who prefer to buy locally (which is a growing market share). Not stopping there we pressed this advantage by inviting friends to join us for the labor-intensive three-week harvest each fall. Our numbers temporarily swell to three times their normal size and it’s a madhouse harvest festival (a form of temporary community that we know how to manage). We’re no more efficient working this way, but all the incoming labor is volunteered—guest campesinos are compensated with wonderful food and camaraderie.
—To some extent people can substitute for capital and property. If people are a major resource, think about how to leverage that. Let me give another Sandhill example for how we applied this principle.
Just like most of our northeast Missouri neighbors, we grew soybeans. If we sold them as a raw product (as our neighbors do) we wouldn’t have any advantage. However, we added value to our soybeans by making them into tempeh, and selling that instead. While it wasn’t a get rich scheme (we made about $10/hour on tempeh), there were several advantages to this approach:
• We could make tempeh year round and work when we wanted (when you’re dealing with raw agricultural products you must work when the weather is right, not when it fits your schedule).
• We set the price for local, organic tempeh. When you’re selling raw products, you mostly have to sell for what buyers will pay.
• We were selling a product that aligned well with our value for healthy living. Soy-based protein is easier on the land than meat-based protein and there’s no cholesterol.
• We could produce the same income from one acre of soybeans converted into tempeh that our neighbors could generate from selling 25 acres of raw soybeans. That allowed us make the income we needed farming far less land, which meant our operation needed far less capitalization.
—Often communities develop expertise in an area to meet their own needs, and that knowledge can have commercial application in ways that home-scale experiences may not. For example, Twin Oaks (Louisa VA) was a well-established community of about 90 adults that grew a significant fraction of its own food in extensive community gardens. When neighboring Acorn (Mineral VA) acquired Southern Exposure Seed Exchange (an heirloom garden seed business) in 1999, it was an easy adjustment for Twin Oaks to become a major seed grower for Acorn, thereby boosting income for both communities.
—Communities frequently control land or have commonly held buildings that are underutilized. (Have you ever noticed how often the lights are out at the common house?)
3. How tricky is it to navigate the dynamic where members are both peer/peer and employer/employee?
The hardest part is likely to occur when the employer gives the employee critical feedback about their performance as an employee—and these two are at the same time neighbors. This can be dicey, and a lot will depend on how well the culture of the community supports the expression of critical feedback and clean communication. If the community struggles to work through tensions among members then this does not bode well. Going the other way, where roles are clear and skills are sharp, it’s just another of life’s unexpected pleasures.
4. How can we encourage non-income-sharing communities to develop their potential as an economic engine?
We suggest groups think about this in two ways:
a) What can communities do to foster and support business development among entrepreneurial members? [See the replies to Questions 1a and 2 above.] By seeing the collective skills of community members as a pool, it’s quite likely that there is expertise within the pool that can cover most of the needs for business expertise—especially at the advising or consulting level (as opposed to the regular job level)—without going outside the group. Canvass the group and put that skill to work! Not only will you be strengthening the economics of the community, you’ll be strengthening relationships into the bargain.
Beyond that, the community may be a huge help with capitalization, perhaps through borrowing against capital reserves or by organizing a loan pool funded by members with deep pockets.
b) What can groups do to help new businesses create jobs for non-entrepreneurial members? We touched on this above, and think the community’s role in this may be crucial. Often small business owners are content to remain a one-person or single household operation. The owner may not be strong in social skills or is otherwise leery of the dynamics of hiring and firing neighbors. Thus, remaining a ma-and-pa outfit eliminates potential personnel headaches, and owners may not be that ambitious about growing the business.
However, the savvy community will know that a majority of its members are non-entrepreneurial, some fraction of which may well be eager for local work that has a good values match. By getting involved at an early stage, the community can be in a position to offer the carrot of helping to identify business assistance in exchange for job creation—including the offer to troubleshoot personnel concerns, on an as-needed basis. There can be a lot of good in this. The principle is simple: the more people you have eagerly hunting in the clover field, the more you’re going to turn up specimens with four leaves.
To be clear, access to the community’s “Chamber of Commerce” would be strictly voluntary; no one would be required to use this group, or to heed its advice.
5. To what extent is a focus on business development just buying into the (failed) paradigm that growth solves everything, and to what extent is it sensible to use traditional business tools to support alternative economies?
While I think there’s a lot that can be done to dial down demand (and live happily on less), it nonetheless makes sense to be smart about analyzing prospects for new business ideas with time tested traditional queries. For example:
—What’s the market for your product or service?
—What’s the competition?
—What do you do better than anyone else?
—What are you passionate about doing?
—Can you profitably produce or deliver your product or service at a price people are willing to pay?
—How is your business an expression of who you want to be in the world?
—How will you manifest the start-up capital you need to make a go of this business?
—How will you service debt and not go belly up?
6. How do you handle the tension between the non-entrepreneur (who tends to be risk averse) and the entrepreneur (who tends to be risk tolerant)?
Let’s be real. This tension exists already, whether you have community businesses or not. Isn’t it a better strategy to learn to deal constructively with the full breadth of attitudes among your membership than to attempt to eliminate or shy away from opportunities for those differences to manifest?
[Terry and I will be reprising this workshop at the next national cohousing conference in Nashville TN, May 19-21, 2017]
• • •
Can communities afford to not explore their economic potential? I don’t think so.
I’m not looking for Trump’s jawboning to bring back the manufacturing jobs that were lost to outsourcing. I’m not looking for governments to bail us out at all. I’m looking at what we can do for ourselves, working together in values-aligned cooperative groups—the same kind of entities that impressed Margaret Mead so much for their potential to effect world change.
Sidebar #1: Redefining Terms
—Security
Ordinarily this term conjures up thoughts of bank balances and insurance policies. In community, however, or in close-knit neighborhoods, we can shift that to relationships—the people who will be there for you in time of need.
There are some nuances here, such as maintaining an intergenerational mix (so that the percentage of members needing help doesn’t get too high) or joining a community after you can no longer contribute (knocking out of balance a healthy sense of give and take), but these challenges can be solved with sufficient forethought.
—Quality of Life
We mostly think in terms of amassing material goods or money (which can buy material goods).
However, if we can shift from ownership of goods to access to goods, this is very liberating on one’s budget. In community, you learn quickly that everyone doesn’t need to own a lawnmower, a washing machine, or a table saw.
Yes, sharing comes with challenges—the tragedy of the commons, and mutuality of need come to mind—yet think of all the dollars you don’t have to earn if you share items that you only need occasionally.
This can be translated into working fewer hours, or changing to a job you enjoy more but pays less.
—Sustainable Economics
In the mainstream culture we rely on GNP (gross national product) as the principal indicator of economic health. That’s a measure of throughput, with no distinction between $1 million spent on building wind turbines or $1 million spent on cleaning up an oil spill (or $1 million in legal fees to defend the company that caused the oil spill)—they are considered equivalent events in terms of GNP.
But what if we valued conservation of resources instead? Rather than measuring how many trees were sold for lumber, we’d focus on how many trees are still standing that could be cut into lumber. Since we live in a world of finite resources, maybe it would make better sense to focus on what we have available (rather than how fast we’re exchanging it). We could peg our sense of health to how many inches of topsoil we had at the end of the year, rather than on the dollar value of the potatoes we grew in that topsoil last year.
Economist Herman Daly laid out a blueprint for this different approach in his seminal work, Steady-State Economics (1977). We could focus on a system of exchanging goods and services that can be continued indefinitely into the future with no one getting hurt. We could emphasize helping people find work they love and are good at.
We could redefine “work” as something that purposefully blurs the traditional distinctions between work and play—because you enjoy both.
To make a shift of this kind requires the fish to sense the water they’re swimming in and to decide to try something else. It’s questioning fundamental assumptions about what kind of activity or condition best measures the health of an economy—by which I mean a system’s capacity to support people getting what they need and want for a decent life.
It’s hard, and perhaps a bit scary, but it can be done.
Sidebar #2: Challenges Peculiar to Community-based Businesses
As promotional as I am about community businesses, there are pitfalls that it behooves groups to become familiar with up front:
1. You will need to devote time and resources to training people in communication and cooperative problem solving. While people will be attracted to what you intend and what you have created, that does not mean they will already possess the skills to plug in well. In fact, they most likely won’t (or will have those skills only partially mastered).
Because intentional communities purposefully effect culture change, any business embedded in an intentional community will be operating in a different culture. In recognition of that tautology you would be wise to anticipate the need to build capacity as a precondition to reaping the benefits. (While you might reasonably project a flywheel effect that will help carry you along with its positive momentum once you have things well under way, there will be a lot of effort in the beginning getting things pointed in the right direction.)
2. It is a complication to embrace the concept that relationship building is part of your work. Yes, it comes with the advantages enumerated in the main article, yet it won’t all be cake and balloons. There will be times when you’re ready to focus on a task and some of your fellow workers will insist on working through interpersonal tensions instead. In mainstream workplaces, there are typically strict limitations on what, how, and when you can expect tensions to be addressed (if at all); in a community-based business you’re going to have to budget time to do this work way beyond the industry average (and it won’t come in predictable doses; it’ll be episodic, irregular, and occasionally intense).
3. Collaborative decision-making can take considerably longer than typical management styles in the corporate world. While you can make an excellent case for why collaborative styles will produce better decisions in general, there needs to be a fairly sophisticated understanding of how to delegate effectively and under what conditions it makes sense to use a more streamlined decision-making process (for example, to respond effectively to time-sensitive conditions and information). Doing this in a sloppy way is highly expensive (in terms of hurt feelings, a sense among workers of betrayal or hypocrisy, and frustration among management). It’s serious work developing an effective decision-making style for collaborative groups, and you can get creamed if you don’t anticipate this.
4. It can be tough navigating the dynamic where two members are in a manager/employee role in the community business, while at the same time relating as peers in community meetings. There are different expectations in those roles and it can get confusing if people have trouble changing hats when shifting from business conversations to community conversations.
Sidebar #3: Profile of Members Seeking Part-Time Employment
Among members of non-income-sharing communities looking for employment, here are the preferences I have been able to distill from direct observation and discussion:
—Options for part-time work
—Flexible hours
—May need help with childcare, or openness to having young kids at the work site
—Strong match between work values and personal values (no prostitution)
—Low/no commuting
—Casual dress permitted (minimal wardrobe expenses)
—Social skills highly valued
—Limited desire/willingness to manage
—Wages need to be decent, but not exorbitant
Sidebar #4: Defining Living Wage
How much income is needed to live decently? Answers vary widely, based on individual circumstances. Essentially, we’re talking about covering basics (food, shelter, clothing, transportation, and health), plus some for education, travel, entertainment, and savings. Someone living in the city will have a different bottom line than for someone living in a rural county without a stoplight (as I did for 40 years). Someone living in an income-sharing group house will have a verydifferent budget than someone living in a single family home.
The amount of money you equate with a living wage will be directly tied to the decisions you make about the amount of independence you seek and the degree you feel you need to own things (rather than share them), and these choices will tend to have a significantlygreater impact on your money needs than the local real estate market.
Getting the Life You Want on Less Money
Probably the biggest two items on your expense list where you have immediate potential for drastically reducing your living costs are in housing and transportation, with food a distant third. The more you share, the less money you need to have the standard of living you seek. It’s that simple (though, to be sure, the practice of sharing is not always simple—which is why there’s a social dimension to sustainability).
Another factor is the extent to which you equate your worth with your wage (or your bank account).
The mainstream culture has gone to considerable lengths to condition people to make this link, and it can take serious effort to unlearn it. (The good news is that it’s possible.)
Making Work Work for You
The way through this issue is to expand the list of things you value when assessing what you get from your work. While money is a factor, you can also value:
—Relationships (both with colleagues and with clients)
—Education (what you learn while delivering the job, either professionally or about yourself)
—Opportunity to serve
—Working conditions (pleasure derived from the environment in which you work)
—Access to resources (use of company tools and expertise for personal purposes)
—Contacts (which may lead to more rewarding jobs in the future)
—Ancillary social benefits (the opportunity to visit friends and relatives living near or en route to where you’re delivering work—this is a big one for me, because I travel a lot as a process consultant)
The point is that it’s good to have a complex equation when assessing the value you get from work, as it gives you the greatest leverage for practicing the permaculture principle of “stacking functions.” That is, your life will tend to work better if you can get work to satisfy multiple functions (rather than just generating the money with which to afford the myriad things you really want to do).
The Problems of Separating Love & Money
While mostly people are looking for more money from their work than they’re getting now, there can also be a challenge from the other direction: where people insist on not getting paid (or paid decently) for work they love. The idea here is that the other side of the people-not-having-work-they-love coin is people not wanting to mess up what they love by associating money with it.
It works like this. Having taken deeply into their heart the shibboleth that money is the root of all evil they don’t want to contaminate activities they love with the taint of commercialism. This can play out in a couple of versions.
One is the artist (and everyone who practices something they love can be styled an “artist”
—regardless of the value others place on that person’s work) who chooses to not sell what they produce (or accept commissions to create it), for fear that market preferences will influence (either subtly or grossly) their artistic choices and they prefer a non-economic purity in their practice.
Another is that some people working in the social change field will prefer to volunteer or accept low wages in exchange for credibility or even power. The dynamic is that there tends to be a deep suspicion about the motives of people who ask for high wages (note that “high” in this context can simply mean a living wage), and some would prefer to demonstrate their depth of conviction by accepting little or no compensation, hoping (perhaps subconsciously) to trade their poverty for influence.
While there are all kinds of flaws in this logic (what does it say about a model of a sustainable world if it depends on the people working to create it not being sustainably compensated for their efforts?), this “pride of poverty” phenomenon is a powerful dynamic undercutting the effectiveness of much social change work today. (For an excellent and poignant story about this, read pages 37-40 of Passion as Big as a Planet by Ma’ikwe Ludwig.)
Sidebar #5: Laird’s Economic Journey
In the interest of completeness and transparency, I want to share my personal odyssey in relationship with money. While everyone’s path is unique, and my experience cannot be a blueprint for anyone else, I think personal stories ground the issues and can occasionally provide inspiration.
Background
I grew up in the Republican suburbs of Chicago, and have an extreme amount of privilege in the mainstream culture. My father was financially successful and I was raised to be so myself. There isn’t a shadow of a doubt about whether I could make lots of money if I set my sights on that goal.
I did not grow up rich, but comfortably middle class. The most important thing I got out of my upbringing was a strong sense of self-confidence. As I understand it today, this is the result of: a) my privilege; b) feeling secure in my parents’ love; and c) my never having experienced any serious deprivation growing up (my basic needs were always met). So the first piece to understand is that I had serious advantages.
While my father had plenty of money, and seemed to enjoy making it, it was also clear that he wasn’t happy. In fact, I came to understand by the time I went to college that he was profoundly lonely. It was a wake-up call of serious proportions to see my father—who was clearly a success as measured by societal standards—not happy. He was, I understand now, living well beyond the “Apex of Fulfillment,” and I wanted no part of that experience. So my second piece was that I understood early on the limitations of what money can buy.
I went to college during the years 1967-71: the height of Vietnam protests. It was a period of unprecedented unrest on campus and I was smack in the middle of it. I burst out my conservative cocoon and started questioning damn near everything. I loved the intensity of the inquiry and what I now see with hindsight were my first tastes of community—dormitory living with peers. These were exciting times, and it was in that context that the next piece emerged: I was drawn to social change work (and I knew that I was going to be a builder-upper rather than a tearer-downer: I had seen both roles showcased in those years of protest, and it was quickly apparent to me that I enjoyed putting together solutions more than I relished ripping the scales from others’ eyes).
Coming out of college, I knew I was supposed to get a job (in the same way that I knew that I was supposed to go to college after high school). Already oriented toward wanting to make a difference, it seemed a good idea to explore public service, and for two years I worked for the US Department of
Transportation in Washington, DC as a junior bureaucrat. As it turned out, it was the only regular 9-5, M-F job I ever had. I worked for the then-magnificent salary of $7,000/year, and saved money. (The two main components of this were shared housing and not owning a vehicle; it’s incredible how far you can stretch a paycheck when you get control of housing and transportation, and don’t eat out every night.)
While it didn’t take me long to grok that this would not be my most productive environment (too much bullshit, not enough action), it was a valuable experience. It was, for example, highly instructive to experience being the lowest paid person in my division (of 12 professionals and seven secretaries), and yet I was the only one not complaining of a shortage of disposable income. People in that office spent to the limit of their income (or beyond). Sure, they had nicer houses and nicer clothes, yet they didn’t seem happier. This reinforced my inclination to not enter the consumer rat race. What was the point?
I also realized that I had lost that excitement and stimulation of college days. Maybe I’d made a mistake. Instead of focusing first on career possibilities and rebuilding a network of relationships in whatever job came along, maybe I should have done it the other way around: focus first on the people and let the job follow. In February 1973 I was in a public library and happened across the current issue of Psychology Today. It included an excerpt from a new book by Kat Kinkade, A Walden
Two Experiment. It described the first five years of Twin Oaks Community, and it changed my life. “Community” was the label I was searching for to describe what was precious to me about my college experience. So now I had another important piece: people first; money second.
By August I had “retired” from public service and began serious conversations with friends from college days about starting our own community, to recreate that special environment. By the following spring, we had founded Sandhill Farm: four people willing to try to make that happen.
Because Twin Oaks was the inspiration and because I’d already done a fair amount of work to reject materialism, we set up Sandhill as an income-sharing community, where all earnings would be pooled.
The community still operates that way today.
The four of us were able to buy the land and expand the housing to meet our needs with cash (about $20,000). A significant fraction of that was saved from my two years in DC. I was 24 years old and had just bought land (with others) in northeast Missouri. I had no job (or even an inkling of how we were going to make the finances work), but we also had no debt.
The Community Years
From this point on, I began seriously working on developing a viable economic model that was quite different from any I had known before. Here are the components of what I was able to accomplish:
—Drastically reduced my need for money to supply basic needs, by living in a homesteading community that shared income.
—Worked consciously to expand the pool of things that give me high satisfaction (essentially this entailed cultivating curiosity).
—Insisted that the highest possible fraction of what I do was things I loved doing.
—Defined work broadly (valuing both domestic and income-producing activities as “work”).
—Blurred the line between work and play.
—Worked only when I wanted to (though I wanted to a lot).
—Brought my full passion into everything I did.
—Defined success as loving the process, not the number of projects completed.
To the extent I’ve succeeded at this, I don’t track how much I work, and work doesn’t tire me. (clients feel this from me—even if they don’t know where it comes from—and it positively affects their experience with me, making it all the more likely they’ll want to work with me again. It’s a tremendous positive feedback loop.)
By having lots of things that attract me, I have a wide variety of work. Because I also have considerable control of my time, this affords me an important degree of flexibility. Whenever I get tired of one thing (or seem to have lost my creative edge), I simply lay it down and do something completely different. By this practice I am able to maintain an unusually high degree of enthusiasm for what I do, and rarely get run down.
Pricing Myself
I do a lot of things that make money. Yet money doesn’t drive me. By having a low need for cash (by American standards) it gives me considerable leverage in the marketplace. As a process consultant (my most remunerative activity), I know that my services are valuable (I price myself as worth $1500/day, plus expenses). Whenever prospective clients ask what I charge, I give them that figure, and in the same breath tell them that I don’t want money to get in the way of the work and that I’ll agree to do the job (assuming I’m interested in it) for what they can afford. That is, I tell them that I’ll say “yes” to whatever amount of money they put on the table, without quibbling. The only requirement is that they have a conversation (without me present) about what they can afford. What I don’t do is offer discounts up front. I insist they have the conversation about what the work is worth. And then I trust their answer.
In consequence, I get paid all over the map. Sometimes I work for a pittance, or even pro bono. In the end though, taken as a whole, I get paid plenty and I am able to ignore the paycheck when doing the work.
One last piece. I’ve derived considerable satisfaction from making jobs up (rather than out-competing those already in the field). That is, on multiple occasions I’ve cooked up an idea for a job that hasn’t existed previously—something that really excited me. I’ve talked people into supporting me as a volunteer long enough to demonstrate that job’s worth, and then gotten the job funded. After a while, my interests invariably evolve, I find someone to replace me, and I create a new job. I’ve done this half a dozen times.
After firmly establishing myself in the field of intentional communities as a process consultant, I am poised to leave that to others and focus instead on bringing the lessons and tools of cooperative dynamics into the wider culture—among neighborhood associations, schools, churches, and the workplace, where the commitment to community and cooperation is softer, yet the numbers yearning for something better are exponentially higher.
Category: Finance
Tags: community, Community support, Finance, Shared Income
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