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I telecommuted exclusively for about 6 years. Worked out great for me.
Now that I'm back to a daily commute, I really miss the time I've lost to the drive, not to mention actually getting presentable--it takes a while ;-) I've also had to spend a chunk on wardrobe, and there's lunch out every day instead of leftovers from the decent meals I no longer have the energy to cook.
Personality-wise, I'm a pretty good fit for spending the day alone... in fact it's almost the same here at the office! I never had a problem meeting commitments or scheduling my work, or focusing when it was necessary. I don't have any particular advice there. I worked long and hard when it was necessary, and when it wasn't I didn't worry about pretending to be busy.
To keep from going nuts, I had 2 dogs to keep me company. Yes, I talked to them.
I walked a few times a week with a neighbor during the day, schedule permitting. I cultivated friends for skiing, riding bikes, etc. and did as much as I could during the week, again, schedule permitting. And with that extra 2 or 3 hours of real life you get back, it's a lot easier to work that fun stuff into your schedule!
I was always able to keep in touch with colleagues by e-mail or phone. In fact one team had daily phone conferences to kick off each day. That got me into the "office" at a set time every day. As much freedom as I had, I also followed a reliable schedule.
Also, I have a "real" office. My husband went nuts at Staples and filled half a large guest bedroom with a very professional office suite. Since it felt different from the rest of the house, it really felt like going to work.
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