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Leaving big tech to build the #1 technology newsletter | Gergely Orosz (The Pragmatic Engineer)

Lenny's PodcastLenny's Podcast
People & Blogs6 min read75 min video
Nov 17, 2022|13,437 views|136|13
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TL;DR

Leaving a six-figure Big Tech job to write a newsletter is now making more than his previous salary, but it comes with the pressure of constant content creation and a lack of external structure.

Key Insights

1

Gergely Orosz was making $320-330k/year in total compensation at Uber, which he notes is equivalent to $500-600k in the US, but now earns more from his newsletter.

2

The Pragmatic Engineer newsletter grew from 50,000 subscribers to over 189,000 in approximately 5-7 months, with 80,000 new subscribers in the last 90 days, partly due to Substack's recommendation feature.

3

Orosz publishes two posts per week: a more in-depth, timeless post on Tuesdays and a timely 'scoop' reflecting market analysis on Thursdays, with occasional bonus posts.

4

He attributes his productivity to self-imposed deadlines and the pressure of thousands of paying subscribers, comparing it to the accountability of signing a book contract with a publisher.

5

A surprising downside of the newsletter life is the loneliness and missed camaraderie of a corporate environment, despite enjoying the freedom and autonomy.

6

Orosz emphasizes the importance of having 'depth in the field' before starting a newsletter, suggesting at least six years of relevant experience and a consistent writing habit.

Leveraging Big Tech experience for a lucrative newsletter career

Gergely Orosz, author of 'The Pragmatic Engineer' newsletter, details his unexpected career pivot from a high-paying engineering management role at Uber to a full-time content creator. He candidly shares that his best year at Uber yielded $320-330k in total compensation, a sum he considers substantial, especially in Europe, equating it to $500-600k in the US. Remarkably, his newsletter now surpasses this income, with earnings that continue to grow as long as the newsletter expands. This contrasts sharply with his previous role, which had a theoretical compensation cap. He found himself in a privileged position earning well in a job he loved, only to discover that pursuing his passion for writing could be even more financially rewarding.

The meteoric rise of The Pragmatic Engineer

The growth of Orosz's newsletter has been extraordinary. After nine months, it reached 50,000 subscribers. In the subsequent five to seven months, it surged by another 100,000, reaching over 189,000 subscribers as of the interview. A significant growth engine has been Substack's recommendation feature, which benefited his high-visibility newsletter. The newsletter operates on a freemium model, with a substantial number of readers paying for a single-digit percentage of premium content, exceeding all his expectations. Unlike many creators, he relies solely on subscriptions, eschewing sponsorships or ads.

The compelling decision to leave a secure Big Tech job

Orosz's decision to leave Uber was precipitated by the company's layoffs and a personal promise to himself to take a risk after achieving significant financial security. Having negotiated a compensation package that doubled his previous salary at Skyscanner and included substantial stock options, he made a pact to one day leverage this security to explore entrepreneurship. The COVID-19 pandemic and the subsequent stressful layoff environment at Uber, where even highly competent colleagues were let go, served as the catalyst. He realized his career path, which had been on track for senior leadership roles, was not as secure as he once believed. His initial plan was to start a venture-backed startup, leveraging his experience with Uber's bespoke internal systems. However, while writing a book during his transition, he discovered a passion for online writing through his blog and Twitter, which unexpectedly led him to self-publish books and eventually pivot to the newsletter model.

Crafting content amidst the 'thousands of micro-bosses'

The daily life of a full-time newsletter writer involves a rigorous content schedule. Orosz now publishes two posts per week: a deep-dive on Tuesdays and a timelier 'scoop' on Thursdays, occasionally supplemented by bonus content. He emphasizes that writing a single in-depth post can take days, involving research, multiple drafts, feedback from trusted sources, and editing. Initially, this pace was stressful, often involving working against deadlines. He likens the experience to having 'thousands of micro-bosses'—his subscribers—each capable of 'firing' him by unsubscribing. This external pressure, combined with self-imposed deadlines and a dedication to writing about topics not readily available elsewhere, drives his productivity. He employs a system where he consistently writes, often working on upcoming posts for future weeks to maintain momentum.

Navigating the unstructured freedom of self-employment

A significant challenge for Orosz, and many self-employed creators, is managing unstructured time. He found that without the external structure of a corporate job, his productivity initially suffered, leading to feelings of guilt. He has experimented with various productivity techniques, including focus apps like 'Sender,' the Pomodoro technique, and self-imposed deadlines. A particularly effective method involves blocking distracting websites and apps, forcing his brain to focus for short, intense periods. He also notes that external accountability, such as writer's block being a 'big deal' when thousands are paying for content, is crucial. He uses a script to block himself from distracting sites and finds that setting a simple 20-minute timer for focused work can be transformative, often leading to deeper engagement once he starts.

The surprising downsides: loneliness and the quest for validation

Beyond the financial rewards and autonomy, Orosz highlights several surprising downsides, including profound loneliness. He misses the casual camaraderie and spontaneous interactions he experienced with his team at Uber. The lack of a shared physical workspace means missing out on hallway chats and lunch discussions. Another significant challenge is the constant pressure for external validation; subscriber numbers and engagement metrics become a source of stress, especially for a successful creator like himself who recognizes their success is rare. This also leads to uncertainty about progress, as internal goals can be easily met or missed, creating a persistent sense of 'where am I?'

The unique exit path and the challenge of time off

Unlike traditional tech careers where equity or selling a company provides an exit strategy, the creator economy often ties an individual's value directly to their personal output. For Orosz, selling his newsletter would likely undervalue his ongoing personal brand and contribution. This makes building a large organization or hiring other writers less appealing if his goal is to maintain direct involvement. Furthermore, taking meaningful time off is difficult because continuous content production is essential to retain subscribers. While he has implemented a 'PTO policy' of four weeks off per year, the pressure to constantly deliver great content limits extended breaks, a stark contrast to the generous parental leave he experienced at Uber.

Building depth and leveraging experience for content creation

Orosz's advice for aspiring newsletter creators centers on building domain expertise before launching. His own success is rooted in years of blogging and writing about software engineering, accumulating a significant body of work that resonated with readers when he launched 'The Pragmatic Engineer.' He emphasizes the importance of depth, credibility, and a consistent, long-term writing habit. He also advocates for setting controllable goals, such as writing regularly, rather than solely focusing on external metrics like subscriber count. The key is to share knowledge genuinely, learn from the process, and be prepared for the possibility of luck, while also recognizing the evolving media landscape, with fewer people focusing on in-depth written content.

Key Takeaways for Aspiring Newsletter Creators

Practical takeaways from this episode

Do This

Build depth in your chosen field to establish credibility.
Start writing and sharing your knowledge consistently, whether via newsletter, blog, or video.
Set controllable goals, like writing a certain number of posts or dedicating specific time to your work.
Do side projects to build entrepreneurial muscles.
Be curious and embrace experimentation, pivoting as needed.
Find formats and mediums you genuinely enjoy.
Treat your newsletter as a business, not just a creator project.

Avoid This

Don't expect overnight success; recognize that building takes time and consistent effort.
Don't set goals that are outside of your control (e.g., subscriber count).
Don't solely rely on interviewing others if you don't have your own expertise to share.
Don't be afraid to take risks, but do so with a plan and clear expectations.
Don't neglect the importance of structure and deadlines, even when self-employed.

Common Questions

Gergely Orosz reported making significantly more than his $320,000-$330,000 total compensation at Uber, with earnings that continue to grow as the newsletter expands. This demonstrates a high earning potential, with no theoretical cap.

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