I recently accepted a job out of desperation after searching for a long time. It's in-house at a brand as a mid-senior level creative which I am overqualified for (there is no CD position currently). I made it clear that I my goal is to move into a CD level role and was told that would be a possibility. Should I offer to initiate CD level projects where I see the need or opportunity? Could doing that make them unmotivated to promote me since they're getting that work for less?

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Not so soon. Test the waters and see if that’s doable/worth it.

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