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While developers create software assets and therefore create wealth, its important, as an individual developer, to work on assets that have a higher multiplier
by jrs235 11y ago
While developers create software assets and therefore create wealth, its important, as an individual developer, to work on assets that have a higher multiplier of profits.
Working for an insurance company on an internal system that helps agents sell and manage policies reduces costs by eliminating assistant and clerk positions and streamlining the process to save time. The development team working on such a project is working on reducing costs. This type of project is about lowering the floor (to increase profits, the more space between the floor and the ceiling the more profit).
A development team working on a software product that is sold is focused on adding as value to the product so that the company can charge more for the product, increasing sales and profits. This type of project is about raising the ceiling.
Ideally you want to be raising the ceiling, not lowering the floor. You can only lower the floor until you're on the ground (you can only reduce your costs/expenses to zero). If a company is focused on lowering the floor (reducing costs), they are interested and focused on removing YOU too (you're a cost). If a company is focused on raising the ceiling (increasing value and sales), they are more likely to see money spent on software development as an investment and are focused on making you more productive so you can add more value.
Work on a project that raises the ceiling not lowers the floor.
- jbergens 11y agoBut selling software to others is usually to allow them to save money, they are lowering their ceiling and might approach the bottom some day. And then there is competition. When you have a lot of it it won't be possible to charge any amount and someone might say that from now on you are going to focus on the low end of the market which means less focus on new advanced features. For internal systems it is usually very hard to stop using them after a while and there is also often a lot of things to develop in the systems. That means you are still contributing to the company. Stopping all development of internal systems might be very expensive.