I both work remotely, and manage remote employees. I have about 6 years experience doing this.

For employees: You need to set your own rules, stick by them, and have a great work ethic, otherwise you will fail.

For managers: You need to find employees that don't need to be micromanaged, and stick to the notes above, otherwise you will fail.

edit: I should mention that I love working remote. I can't imaging myself going back into an office anytime soon.