I'm always an advocate of working for yourself rather than for someone else, provided you have the will power to do what's necessary. Not everyone does.
I'll throw my 2 cents in on the things you've said. Hopefully it will help you make a decision.
From: OSourcerer Flytrap
Pros:
SL has unlimited potential right now.
I would be doing what I love to do.
SL membership is at an all time high and increasing so the market for products in increasing.
I have mastered SL and don’t have to fight the learning curve.
It is work at home.
It is a pioneering position allowing for me to break new ground.
It is dual hemisphere work - creative/logical.
LL has had a lot of positive press lately and seems serious about marketing.
My business is unique with fewer competitors than most (not clothing/jewelry/club/land).
All excellent selling points. In my mind, the only one that really matters is the second one, "I would be doing what I love to do". The others are important, of course, but they're extremely minor by comparison. If you've found something you love that you can make a living at, there's no greater thing in the world. If you love it, go for it!
As for your cons, I'll take those one at a time. Some of them seem quite important to consider, and some just seem like the same kinds of obstacles ALL businesses have to deal with in RL and in SL.
From: OSourcerer Flytrap
LL/SL can go belly up at any time with zero warning.
The same is true for any other business. This is an inherent risk whehter you're working for someone else, or running your own business. You're always dependant on someone else in some way, and if they make a mistake, it can cost you.
There's no such thing as job security, ever. Just ask anyone who worked for Enron. I'm sure all those people thought they were totally secure, working for one of the biggest and supposedly most successful companies in the world. Then it all crumbled out from underneath them overnight through no fault of their own, due entirely to the actions of a few bad apples who happened to be at the top of the tree.
There's no such thing as a stable company or a stable job. So, this point really isn't relevant in my opinion since it applies to anything you'll do, not just your SL business.
From: OSourcerer Flytrap
I have no way of knowing what LL’s financial position currently is.
This is pretty much the same as the last point.
For what it's worth, I'm in a bit of a similar (but opposite) position right now. I work for myself, but in about 4 hours I have an interview with a graphic arts company that wants to recruit me. They're a privately owned small comapny so I have no idea what their financial status is any more than we can know what Linden Lab's is. I'll see what they have to say to me, and if it seems like a good opportunity, I'll consider it. That's all I can base my decision on, really. If I decide to do it, and then they run out of money, I can always find something else to do. (My biggest problem in this has nothing to do with anything so real. Wat I'm worried about is getting past the hipocrictal feelings I get from actually considering working for someone else, since I've been such a long time advocate of self-emloyment.)
So the question here is does your SL business seem like a good opportunity to you? If the answer is yes, which it sounds like it is, then that's all you have to go on. Focus on the things you can control, and don't worry about the things you can't.
If it makes you feel any better, every viable business that operates in SL adds to LL's financial strength. Success breeds success. Content creators are the ones who give consumers a reason to come to (and stay in) SL. The more of us there are, the better. Compelling content means more entertained residents, which means more business for all of us, including LL, first and foremost. The best way to insure LL's success is to be successful in SL yourself.
From: OSourcerer Flytrap
At anytime a new competitor can come out and leapfrog SL’s technology.
If that happens, open a duplicate of your business in that competitor's world. No reason not to.
Anyway, this again is something that all businesses have to deal with. Industries change, competitors emerge all the time. Whether you're in business for yourself or working for someone else, you're always impacted by this in some way. It's just how the world works.
From: OSourcerer Flytrap
The security of my IP within SL is definitely questionable.
Not sure what your definition of "security" is here, but protecting an IP in SL is the same as protecting it anywhere else. The mistake most people make is they expect LL to jump in and settle IP disputes, which are ultimately are legal cases, well beyond the scope of LL's function as a service provider. It's for courts to settle these things, not private companies.
Run your business like a business, and the answers to these kinds of concerns are fairly self evident.
From: OSourcerer Flytrap
LL’s customer service history leaves a lot to be desired and any problems I have may never be addressed.
Obviously, I can't speak to anyone else's experience, but I'm always suprised when people say that. I've found over the past few years hat LL has been nothing but communicative and responsive whenever I've had the need to contact them.
I think the biggest mistake people make is they expect that when they're upset about something that bitching about it here on the forums is the right thing to do. Perhaps these people gain some small temporary satisfaction when they're able to entice others to comiserate with them, but in my experience, publicly bombasting a company (composed of real people) never accomplishes anything real. The way to see that your concerns are addressed is simply to pick up the phone and explain your problem in a friendly, inteligent, positive manner. I've never had problems getting a response from LL when I've done this.
From: OSourcerer Flytrap
LL has a habit of producing very disruptive updates that require retooling and repackaging of products.
That is a constant problem, yes. However, since an SL business has no overhead, no production costs, etc., this one 'cost of doing business' is relatively minor in my opinion. RL businesses are plagued with much more severe disruptions all the time.
From: OSourcerer Flytrap
The shifting rules of SL (taxes, public land, dwell, telehubs, etc...) makes business unpredictable.
Again, this is true for all businesses. That's why RL industries spend incredible fortunes lobbying politicians, so that when things change, as they inevitably do, they hopefully won't negatively impact concerned industries too much.
From: OSourcerer Flytrap
I have no convenient reliable means of backing up products.
That's an issue. No good answer there, I'm afraid. It's a risk.
From: OSourcerer Flytrap
Griefers and scammers are on the upswing. I hate dealing with them.
RL businesses have to deal with thieves, vandals, hackers, etc. The question is is this negative enough to offest the positive of "I love what I do". If the actions of deviants are enough to make you not love it anymore, then you probably shouldn't do it. However, if your love for your business is solid enougn not to let other people shake its foundation out from under you, nothing they do should matter.
Will it always be an annoyance? Unquestionably. Is that annoyance enough of a reason to stay out of business? Only you can answer that.
From: OSourcerer Flytrap
Knockoff artists have historically duped most of my best items and taken credit for the original idea. I have no recourse against these people.
Same is true in RL. I can buy a 'Rolex' on any street corner in New York for 50 bucks. The real Rolex company still enjoys tremendous success though.
You have all the same options to protect yourself in SL that you have in RL. It's just that most people in SL never persue it properly. They just expect LL to settle it, which again, is not LL's job. If you want to be in business at all (SL or RL), you need to handle legal matters through proper legal channels.
From: OSourcerer Flytrap
Anything I make in SL has zero transferability into other systems.
The transfer conduit is you. You may not be able to just magically export your SL stuff to another world at the touch of a button, but there's no reason you can't recreate the same items there (provided of course the other world in question has the proper functionality, which is not really a concern of SL itself).
From: OSourcerer Flytrap
The blatant copyright infringements that go on daily in SL must catch up to LL one day. How will that impact LL and therefore my SL business?
As a service provider, LL is protected against the actions of its users by the DMCA. As long as they can show a pattern of good faith compliance with copyright laws, and they can demonstrate that they're not actively supporting infringement, they're fine.
I wouldn't worry about this. LL's DMCA compliance policy and history is very straight forward. It's not like they're Napster or Limewire or any of those other companies that have existed at one time or another with the sole purpose of circumventing copyright. That's not what SL's about, and it's pretty easy to show that.
From: OSourcerer Flytrap
The sex culture within SL really gives me the heebeegeebees.
Uh, so stay away from that particular culture?
From: OSourcerer Flytrap
I have seen a lot of old timers fall by the wayside due to one or more of these cons.
People leave, people stay. That's true anywhere. Those people aren't you. Whatever they have or haven't done should be of no consequence to you.
In the RL business I ran for 12 years before I finally got out of it to persue my artistic endeavors as a career, I was a sales rep (and eventually a district manager) for a housewares manufacturing comapany. As is the case in the sales industry, most people who entered the business left it fairly quickly. Those of us who had staying power succeeded and made a lot of money. Others who let little bumps in the road disuade them from reaching their goals disappeared. Every time someone quit, the only thing that went through my mind was "Oh well, too bad they didn't have the will to stick it out. More customers for me then. Okay, back to work."
Don't worry about other people's success or lack thereof . Concentrate on your own.
From: OSourcerer Flytrap
Owning a sole proprietorship in SL means I have to do product support, updates and promotional events.
That's a negative? If you really love your business, I woud have expected this to be on the pros list. However, if you don't like dealing with the public, hire someone who does.
From: OSourcerer Flytrap
Being self employed means I need to earn about 30% more to cover equivalent benefits and insurance.
Common misconception (assuming you're in the US). Every dollar you earn as a business owner is worth so much more than the same dollar as an employee. Owning a business entitles you to all kinds of tax benefits that employees can't even dream of.
So, you have to pay for your own insurance; so what? As an employee, you're still paying for it, even if you don't see it. First, if the company weren't paying for it, they could pay you the cost of it directly, so it absolutely is coming out of YOUR paycheck, no matter what spin they put on the packaging description. Second, the amount you have to pay in taxes as an employee compared with the amount as a business owner more than makes up the difference of paying for your own benefits.
Plus, there are lots of ways to get in on group rates and other discounts. Many states offer insurance supplements for small business owners. Your local chamber of commerce no doubt has an insurance plan. There are endless possibilities for savings. It just takes a little research.
I'd recommend you pick up a book or two on running a small business to learn about the tax benefits you're entitled to at the very least. Give the local chamber of commerce a call, and see what they recommend for learning material. You'll be amazed at what your dollar is actually worth compared to what you're used to as an employee.
From: OSourcerer Flytrap
How can I cash out more than $2,000 a month? If this works out I will need to convert 5x that much.
Sounds like a good problem to have. I'd say Lewis's answer is the best way to go, but you can also sell L$ directly to third party businesses that are in the market. I sell to Anshe a lot. Not always the best rate, but it's in the ballpark, and it's fast and convenient.
From: OSourcerer Flytrap
I would be taking a 50% pay cut for the first year and there is no way of knowing if I will ever make it back to my current salary or possibly surpass it.
That sounds more like negative thinking disguised as caution than actual projection. Have you done any real marketing analysis to determine how much you can expect to make?
In any case, again, opening a business is always a risk, but working for someone else is risky too. In whatever job you're in now, you're trusting that your boss is making the right decisions every day to make sure you still have a place to work tomorrow. When you work for yourself, you only have to trust one person, you.
From: OSourcerer Flytrap
SL is not good future resume fodder.
Why not?
I've got 2 companies offering me work right now due in no small part to what I've done in SL. One company is in SL, and the other is in RL (the one I mentioned above).
From: OSourcerer Flytrap
The SL architecture scalability worries me. It seems as if the system is already groaning.
I can't speak to that too inteligently, I'm afraid. All I can do is take the Lindens' word for it that they're scaling the right way.
From: OSourcerer Flytrap
How confident am I in LL? Are they truthful with their statistics? How much is hype and how much is real?
Well, I'd imagine you can be more confident in LL's truthfulness than you could be in that of, say, Enron, Adelphia, Worldcom, the US government, etc. Just an educated guess though, since I'm not privy to LL's books.
From: OSourcerer Flytrap
I see my cons list is longer than my pros list. That is a bad sign. On the upside my significant other’s income easily covers both of us as well as insurance. We aren't supporting children but do need to consider retirement (early 40s). I don’t know. I have been riding this fence for a long time now. I’d like to hear from others that have already made the transition.
Yeah, the length of the cons list does appear to carry more weight, but the real question, again, is how strong is your love for your SL business? If it's a source of enjoyment for you, and you have a solid plan to make it financially worthwhile, go for it. Most people can only dream of working for themselves. I don't know what your business is, but if it's already making you $2000 a month on a part time basis, it sounds like a winner. If you believe you have the discipline to run it like a real business, then by all means, do it.