In a world where the pursuit of control over one’s career is often seen as the ultimate goal, it’s crucial to approach this pursuit with a clear strategy. Many people fall into the trap of chasing autonomy and independence without fully understanding the financial implications of their decisions. The truth is, gaining control over your work life isn’t just about following your passions; it’s about ensuring that your efforts are backed by tangible demand. Enter the Law of Financial Viability—an essential principle that underscores the importance of evidence before taking the leap into more control. This article explores how applying this law can help you avoid the common pitfalls of impulsive career moves and provide a more structured, successful path to personal and professional autonomy.
Derek Sivers: The Maverick Entrepreneur
Derek Sivers is a name that stands out in the world of unconventional entrepreneurs. Unlike many business leaders who follow the traditional route—climbing the corporate ladder, acquiring wealth, and then enjoying a life of luxury—Sivers has consistently made career decisions that push against the grain. His decisions, both bold and unconventional, revolve around one central idea: control. For Sivers, the true measure of success isn’t just financial prosperity but the freedom to dictate the terms of his life and work.
What’s striking about Sivers’ career is the consistent pattern of taking control over his professional life, even when it meant rejecting the comfortable or predictable path. A perfect example of this is his decision to leave a secure and well-paying job at Warner Bros. in the early 1990s. At the time, it was a career move that could be deemed risky, even reckless. But Sivers wasn’t thinking about security; he was thinking about his personal autonomy and creative freedom. His passion for music led him to quit his day job and pursue his love for playing the guitar. And instead of following a typical trajectory, like most artists of his time, he didn’t just aim for fame and recognition—he aimed for control over his craft.
Sivers didn’t stop at just pursuing his music career; he expanded his horizons further by founding CD Baby in 1997. At that time, iTunes didn’t exist, and the digital music landscape was still in its infancy. By founding a platform that allowed independent artists to sell their CDs online, Sivers tapped into an unmet need in the market. He took control over the process and structure of this platform, allowing musicians who otherwise would have struggled to distribute their music a direct avenue to reach their audience. This was a huge move, as it provided not just control over his career but over an entire industry that was still finding its digital footing.
But Sivers didn’t stop there. He didn’t follow the typical path expected of someone who sold a company for $22 million. He didn’t buy a mansion, settle down, or go into early retirement. Instead, he set up a charitable trust with the proceeds from the sale of CD Baby to support music education, all while living off a minimal amount of interest. His desire for control wasn’t just about financial autonomy—it was about staying true to his values and remaining unencumbered by traditional expectations of wealth and success. In doing so, he continues to show that control over one’s career and life isn’t just about financial gains, but about living authentically according to one’s principles.
Sivers’ career embodies the concept of control in a way that transcends just owning businesses. He’s demonstrated that control can come from the boldness to do things differently, to break away from the herd, and to follow an inner compass, regardless of how unconventional it may seem. His approach isn’t about being a “control freak” in the traditional sense of the word, but more about being fiercely intentional with the direction of his life and career.
The Law of Financial Viability
The Law of Financial Viability is a principle that Derek Sivers uses to guide his career decisions. In simple terms, it suggests that pursuing more control in your life—whether through a new career venture or entrepreneurial project—should only be done if you can prove that people are willing to pay for what you offer. Sivers introduced this concept when discussing his approach to career decisions, explaining that money isn’t just about accumulating wealth; it’s about demonstrating that what you’re doing has value in the eyes of others.
At first glance, this law might seem overly pragmatic, especially when compared to more idealistic approaches to entrepreneurship. Many people embark on business ventures or career changes driven by passion or a desire for creative freedom. While passion is important, Sivers stresses that it must be paired with evidence that people will pay for the service or product being offered. The idea is simple: If you can’t find people who are willing to invest in your work, your efforts are likely to be in vain.
Sivers distinguishes between passion-driven hobbies and career-driven pursuits. Passion-driven hobbies—like learning to scuba dive or painting—don’t need to be financially viable because they’re done for personal enrichment. But when it comes to career decisions, where the goal is to gain more control and autonomy over your time and work, the Law of Financial Viability becomes crucial. In these cases, you need to ensure that there is clear demand for the work you intend to do. This can manifest in various ways—such as customers purchasing your product, securing investment for your project, or even getting hired or retained by an employer who values your work.
By applying this law, Sivers argues that we can prevent ourselves from chasing after risky ventures or making decisions based solely on idealism. For example, if someone is thinking about quitting their job to pursue a full-time creative career, they should first assess whether their art or product is generating enough income or market interest to justify such a decision. If not, they should consider delaying their leap or reconsidering their strategy.
Sivers also points out that the Law of Financial Viability doesn’t mean you should only work for money’s sake. Rather, it’s about using money as a neutral indicator of value. He clarifies that the law doesn’t apply to hobbies or non-commercial endeavors, where the primary goal isn’t financial compensation. But in the realm of career choices and business ventures, it ensures that your work is being validated by those willing to support it financially. The core of the law is simple: If people are willing to pay for it, then you know there’s genuine demand for your offering, and it’s worth pursuing. If not, it might be time to reevaluate the direction you’re heading.
This principle is powerful because it removes the guesswork and emotional biases often associated with career decisions. It helps you focus on what’s actually viable—ensuring that your pursuits are grounded in real-world value. By focusing on what people are willing to pay for, you align your career with the market’s demands, which increases your chances of success.
How the Law Works in Practice
The Law of Financial Viability becomes much clearer when examined through the lens of real-world applications. Sivers’ own career offers a perfect illustration of how the law functions when put into action. For him, the principle wasn’t merely theoretical—it was a guiding force behind every significant career move. The concept is simple but profound: Only pursue ventures where there is concrete evidence that people are willing to pay for what you’re offering. This applies whether you’re trying to start a new business, negotiate for more control over your job, or transition into a different field.
One of the earliest examples of Sivers applying the Law of Financial Viability was in his transition to music. As a musician, he didn’t immediately quit his stable job at Warner Bros. to follow his passion. Instead, he spent his nights and weekends playing music, ensuring that he was earning enough money from his music gigs before committing to a full-time career in music. This careful, evidence-driven approach meant that when Sivers finally made the leap into music, he had already established a steady income stream. His music wasn’t just something he loved doing—it was something people were paying him for, validating that his decision was grounded in financial viability.
Sivers applied this same principle when he founded CD Baby in 1997. At that time, the digital music landscape was far from what it is today. Musicians had limited ways to distribute their music without going through major record labels, and the idea of independent artists selling their CDs online was still in its infancy. However, instead of jumping into the deep end with no proof that people would pay for such a service, Sivers tested the market. He started small by selling a single CD online, using that initial success to fund further growth. His early customers validated his concept by actually paying for the service, allowing him to scale his business.
It was only after CD Baby proved to be financially viable that Sivers fully invested his time and energy into making it a larger operation. By the time he sold the company for $22 million, he had already proven that the platform had significant value for both artists and customers. This strategy of gradual investment, combined with the market validation that came from actual sales, ensured that his move into entrepreneurship was far less risky than it might have appeared at first glance.
Even after selling CD Baby, Sivers continued to apply this same principle to his new ventures. For example, when he created MuckWork—a service designed to help musicians outsource the non-creative tasks they dislike—he didn’t jump in headfirst without any evidence of demand. Instead, he made sure that there was a market for the service before committing fully. His practice of using financial viability as a barometer allowed him to navigate each decision with confidence, knowing that he was pursuing ideas that were already validated by customers willing to pay for them.
The Application of the Law Across Other Examples
The Law of Financial Viability doesn’t only apply to entrepreneurs like Derek Sivers. It’s a principle that can be applied to almost any career decision, providing a practical framework for ensuring that your efforts will lead to real success. One of the most compelling applications of this law comes from the story of Ryan Voiland, who made the leap from city life to farming. Many people romanticize the idea of moving to the countryside and starting a farm, but the reality is that most of them fail. The reason? They dive in without validating whether the market will support their business model.
Ryan Voiland, however, didn’t take a blind leap. Before he purchased his first piece of farmland, he secured a loan from the Massachusetts Farm Services Agency (FSA), which doesn’t hand out loans lightly. The FSA required a detailed business plan to ensure that Ryan’s farm would generate enough income to pay back the loan. He used his experience and knowledge to build a solid case for why his farm would succeed, providing evidence that he could make money from the land. In this case, the Law of Financial Viability helped him avoid a risky venture by ensuring that he had solid financial backing and a clear plan for success.
Another example of this law in action comes from Lulu, a woman who worked in the corporate world but wanted more control over her work schedule. She wasn’t content with the traditional 9-to-5 grind and desired more autonomy in her life. However, instead of simply quitting her job to go freelance, Lulu applied the Law of Financial Viability by negotiating a more flexible work schedule. She didn’t just ask for time off or a reduced workload without a plan. Instead, she had built up enough career capital—her skills, experience, and reputation at her company—to convince her employer that she was worth the investment. By securing a reduced workweek and later negotiating for additional time off or a freelance arrangement, she ensured that her career choices were backed by the value she brought to the table.
What’s particularly noteworthy about Lulu’s story is that her decision to seek more control over her time wasn’t impulsive or untested. She didn’t take a leap into an uncertain venture. She first demonstrated her value to her employer and made sure there was a clear, validated reason for her requests. If she hadn’t had the career capital to back up her request, her employer would have been far less likely to accommodate her. This reinforces the importance of ensuring that there is demand for your work before you take on additional risk or responsibility.
These examples show that the Law of Financial Viability is not only useful in entrepreneurial endeavors but also in career moves that involve negotiating for more autonomy or control. Whether you’re starting a new business or negotiating for a more flexible work schedule, this law provides a clear framework for making decisions that are grounded in practicality, ensuring that your decisions are financially viable and not based solely on idealism or desire for personal freedom.
Understanding the Importance of the Law
The Law of Financial Viability is vital because it gives structure to the often unpredictable nature of career decisions. It serves as a reality check, helping to separate the emotionally driven decisions from those backed by evidence and demand. While it’s easy to fall into the trap of pursuing something simply because it aligns with our passions or interests, this law forces us to step back and ask whether there is a tangible market for what we’re offering.
Without applying this principle, individuals may find themselves investing time, energy, and resources into ventures that are not sustainable in the long run. For example, many entrepreneurs are drawn to creating businesses based on their interests or hobbies, only to find that there isn’t enough market demand to sustain them. The Law of Financial Viability helps prevent this by encouraging individuals to test their ideas and validate them before fully committing to them.
Moreover, this law underscores the importance of understanding that money is not an end in itself but a reflection of the value provided. Whether you are an entrepreneur starting a new business or someone negotiating for more control in their current job, the key question to ask is whether others are willing to pay for the service or product you’re offering. If the answer is yes, then the foundation is solid, and you can proceed with confidence.
For those looking to gain more control in their careers, this law offers a clear, systematic approach to decision-making. It provides a way to avoid the pitfalls of impulsive decisions based on passion or unrealistic expectations. Instead, by validating the financial viability of a venture before fully committing, individuals can build sustainable careers that are both personally fulfilling and financially successful. This approach doesn’t just mitigate risk; it sets you up for long-term success by ensuring that the work you’re doing is truly valuable to others.
Conclusion: Avoiding the Control Traps
The Law of Financial Viability serves as a crucial safeguard against the risks of blindly pursuing more control without proper validation. Whether you’re an entrepreneur testing a new business idea or a professional negotiating for greater autonomy at work, this principle ensures that your decisions are grounded in reality. By seeking evidence that people are willing to pay for what you offer, you can confidently navigate your career choices and build a future that is both personally fulfilling and financially sustainable. In the end, control isn’t just about freedom—it’s about making decisions that align with market demand, ensuring long-term success and stability in whatever path you choose.