September 2023 Income At-A-Glance
Gross Income for September: $160,879
Total Expenses for September: $11,896
Total Net Profit for September: $148,983
Difference b/t September & August: +$38,901
% of net profit to overall gross revenue: 93%
Why We Publish An Income Report
This monthly income report is created for you, Fire Nation!
By documenting the struggles we encounter and the successes we celebrate as entrepreneurs every single month, we’re able to provide you with support – and a single resource – where we share what’s working, what’s not, and what’s possible.
There’s a lot of hard work that goes into learning and growing as an entrepreneur, especially when you’re just starting out. The most important part of the equation is that you’re able to pass on what you learn to others through teaching, which is what we aim to do here.
Check out all of our monthly income reports – from the very beginning!
**We’ll receive a commission on the affiliate links below. If you click on my affiliate link and sign up for the products and services I trust and recommend, then I will earn a commission.
Ron Parisi’s Monthly Tax Tip
Hello, Fire Nation! Ron Parisi from CPA On Fire here with our September 2023 Tax and Accounting tip.
At CPA On Fire, we specialize in working with entrepreneurs to minimize their tax liability while keeping them in line with the ever-changing tax laws.
Our firm has been working with JLD & Kate at Entrepreneurs On Fire for years now, and they’ve included me in these monthly income reports with unlimited access to all their accounts so I can verify that what they report here is complete and accurate.
And because they believe in delivering an insane amount of value to you, my job doesn’t stop at the verification level; I also provide a new tax and accounting tip every month!
Ron’s September Tax Tip: Sales tax for digital products
I’ve recognized that a lot of you sell products and services online, so allow me to dive into the topic of sales tax for digital products – something with which many online business owners grapple.
As you likely know, sales tax in the U.S. is determined by state laws, which leads to differences or variations in tax rules across states. To deal with this, I suggest you consider these three key points:
- Establishing Nexus: Nexus, or your connection to a state, can be established through physical presence, like offices, employees, or inventory – as well as economic factors, such as sales volume.
- Taxability Assessment: Once you determine Nexus, assess whether your digital product or service is taxable in a specific state. For example, pre-recorded online courses may be taxed differently than live instruction courses.
- Finding Solutions: Explore software companies specializing in sales tax assessment and collection. While these solutions can be costly, they can be tailored to your business size and revenue.
It’s critical to understand all expenses associated with your digital products because regulatory requirements can be expensive.
Thus, it’s of utmost importance to highlight the following, as an entrepreneur myself…
- Budget Planning: Create a budget that accounts for all expenses, including potential sales tax obligations. Work on maintaining a healthy profit margin.
- Future-Proofing: Stay updated and vigilant on any changes in laws, as states may expand their definitions of taxable products to boost revenue. Incorporate sales tax considerations into your ongoing budget planning.
By fully understanding Nexus, assessing taxability, and exploring the best solutions, you can ensure compliance and financial health in a constantly changing economic landscape.
As always, it’s always a pleasure to be with you, Fire Nation! Wishing you a successful month ahead – go out there and crush it!
CPA on Fire offers CFO and fractional financial operation services. We have vast experience working with high-growth entrepreneurs. If you recognize the need to level up your financial operations to improve growth, profitability and free your time, let’s connect! We can show you how we help our amazing clients and what we can possibly do for you and your business.
Check out our website: CPAOnFire.com!
David Lizerbram’s Legal Tip
Concerns About AI and Non-Disclosure Agreements
What’s up Fire Nation! David Lizerbram here and I’m excited to be back with another legal tip for you!
I’ve been practicing law for 21 years and have loads of free content over at LizerbramLaw.com.
This month’s legal tip is all about AI and Non-Disclosure Agreements.
This tip marries two concepts: Non-Disclosure Agreements (NDAs) and Artificial Intelligence (AI).
They may seem unrelated, but I’ve noticed an issue coming up lately that may have escaped the notice of many business owners.
The bottom line is that your business’ existing NDAs (and any contracts that include confidentiality provisions) may need to be revised to account for new developments in technology.
Imagine you own a marketing agency that provides tailored advertising solutions for your clients. You sign an NDA with a big client to work on a campaign for a new product launch. The NDA is standard and has not been updated to account for the complexities of new technology.
You use a popular cloud storage service, like Dropbox, to share files and information. You aren’t even aware that the cloud storage service also offers text and data mining features (akin to AI capabilities) to help businesses extract useful information from their stored files.
While you didn’t actively opt for the text and data mining service, the cloud provider’s terms of service do mention that they reserve the right to scan files for offering custom features, including advertising options to the user.
This situation puts you at risk of violating the NDA. Your client’s confidential information is stored in a cloud service that reserves the right to scan and analyze files. In this example, you are exposing confidential information to a third party, thereby breaching your NDA obligations unknowingly.
NDAs: A Quick Recap
Before we delve into AI, let’s go over what an NDA is.
A Non-Disclosure Agreement is a legally binding contract that prevents one party from sharing another’s confidential information.
These agreements can protect a wide range of info, from your client lists to your business plan. They can be mutual, where both parties agree not to share each other’s information, or one-way, which is primarily aimed at safeguarding only one party’s secrets.
Artificial Intelligence and Business
AI technologies like language models, chatbots, and data analytics tools are becoming indispensable in business.
ChatGPT, for example, is a language model that can simulate human-like conversations, draft emails, and even write code snippets. But it’s important to recognize that ChatGPT is not the only AI tool out there.
There are various AI and machine learning algorithms developed by different companies for a multitude of tasks.
The Collision Course: NDAs and AI
Now, why should you, as a business owner, care about how NDAs intersect with AI?
Most AI platforms are operated by third-party vendors. Even though they often claim to anonymize data sent for training their models, sharing any confidential information with them is akin to sharing it with a complete stranger you meet on an airplane.
As explained in the example above, you are potentially breaching the NDA by exposing confidential information to a third party.
If you are sharing confidential information with any other person or business, you should make sure that your NDA explicitly states that none of that confidential information can be input into an AI program without your consent.
So What Should You Do?
- Check Existing Agreements: Review your current NDAs and update them to address the use of AI tools. If you’re starting fresh, make sure your new NDAs cover this ground.
- Consult your Legal Team: Always consult with your legal counsel to understand the nuances and risks involved in using AI in different departments of your business.
- Educate Employees: Regularly train your employees about the confidentiality clauses in their contracts and the implications of using third-party services like AI platforms.
- Tech Safeguards: Employ end-to-end encryption for sensitive data and limit AI tool access only to authorized personnel.
- Regular Audits: Regularly check the usage of AI tools in your organization. Monitor the conversations and tasks they’re being used for.
- Client Approvals: If you’re considering using AI tools for client work that involves confidential information, seek their explicit, written approval beforehand.
- No-Go Zones: Identify the departments and kinds of information that are too sensitive to be used with third-party AI tools and enforce a blanket ban on their use in these areas.
While AI can offer exceptional benefits for business efficiency, it’s crucial to navigate its use carefully to avoid breaching NDAs and putting your company at risk.
NDAs are not just pieces of paper; they’re legally binding contracts that can lead to penalties if breached. Ignoring the risks is not an option unless you’re prepared to face the consequences.
If you have legal questions about your business, feel free to contact me. I’m always happy to talk with members of Fire Nation!
What Went Down In September
Interview of the Month
How to TRIPLE the Size of Your Business Without Tripling the Amount of Work Required with Clay Clark & Attorney James J. DeCristofaro
3 Value Bombs
- You need to ensure the quality of your product or service, which means having systems for quality control. This is crucial for business growth and success.
- Take action, be diligent, and consistently put in the effort to optimize your website.
- It is crucial to measure what matters instead of just throwing things out there without tracking the results. Focus on delivering excellent service, getting reviews, and consistently improving.
Thrivetime Show: Check out what Clay has to offer! Laugh and learn with hundreds of entrepreneurs like you!
TheLawyerJames.com: Visit and book your free 1-hour consultation with The Lawyer James.
EOFire turns 11!
Happy birthday, Fire Nation!
In September Entrepreneurs On Fire celebrated 11 years in business. WOW!
A LOT has happened in those 11 years, and we thought it would be fun to review some of our biggest milestones in the business!
- Sept 2012: Entrepreneurs On Fire launches!
- Apr 2013: Locked in our first sponsor
- Jul 2013: We launched our first mastermind, Fire Nation Elite
- Oct 2013: We launched our first online course, Podcasters’ Paradise
- Jan 2014: Awarded “Best of iTunes 2013”
- Jan 2015: First 1 million downloads in a single month!
- Jan 2016: Launched The Freedom Journal on Kickstarter
- Jan 2017: Launched The Mastery Journal on Kickstarter
- Jul 2018: Launched The Podcast Journal
- May 2019: Finished 6th place in the Tony Robbins KKB affiliate launch
- Dec 2020: Pre-order available for John’s first traditionally published book with HarperCollins, The Common Path to Uncommon Success
- May 2021: Joined the HubSpot Podcast Network
- Mar 2022: First 3 million downloads in a single month!
You can check out more of our milestones on our EOFire timeline!
Thank you for being on this journey with us, Fire Nation.
Our final trip as a twosome
In September we took our final trip pre-baby, and we had a blast!
We kicked things off over Labor Day Weekend at The Gorge Amphitheater in Washington State right on the Columbia river. WOW! This venue is spectacular!
We camped out for 4 days and saw 3 straight nights of Dave Matthews Band with my sister and her family. This was their fifth year attending, and they’ve always raved about what a great weekend it is.
Being big fans of the outdoors – and DMB – John and I had always wanted to attend, but the timing just hadn’t worked out in the past. Luckily this year the stars aligned and we made it happen!
From Washington we made our way to Boston for HubSpot’s annual INBOUND conference at the convention center in the Seaport District.
We enjoyed incredible weather, delicious meals, and some great mixing and mingling with our HubSpot Podcast Network crew!
Both chats were so great!
We wrapped up our time in Boston with the HPN dinner and had an awesome time catching up with Amy Porterfield, Donald Kelly, Scott Clary, and more!
From Boston we made a quick jump up to Maine to spend the next two weeks with John’s family.
We hung out on the lake, met up with old friends, watched our niece and nephew crush it on the soccer field, had loads of quality time with family, and had an epic baby shower on the lake!
It was hard to wrap up our time in Maine; it’s such a beautiful time of year on the East Coast! But we knew it was time to head back, snuggle up with Gus, and get ready for Baby Bear to arrive!
Our one month countdown to becoming parents has commenced!
Product/Service Income: $157,103
TOTAL Journal Sales: $3,197 | Total Journals Sold: 78
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Total: $1,942 (38 Freedom Journals + 9 Digital Packs sold)
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Total: $1,175 (28 Mastery Journals + 1 Digital Packs sold)
The Podcast Journal: Idea to Launch in 50 Days!
- Total: $80 (2 Digital Packs sold)
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Recurring: $3,945 (43 recurring)
- New members: $2,994 (2 new members)
- Total: $6,939
Real Revenue: Turn your BIG IDEA into Real Revenue
- Total: $0
Podcast Sponsorships: $146,945
Free Courses that contribute to the above revenue:
Your Big Idea: Discover your big idea in under an hour!
Free Podcast Course: Create and launch your own podcast!
Funnel On Fire: Create a funnel that converts!
Affiliate Income: $3,776
*Affiliate links below – if you click on my affiliate link and sign up for the products and services I trust and recommend, then I will earn a commission.
Resources for Entrepreneurs: $3,491
- Audible: $38
- Bluehost: $0
- Click Funnels: $3,429
- CovertKit: $24
- Coaching referrals: $0 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
Resources for Podcasters: $285
- Podcasting Press: $0
- Splasheo: $0
- Fusebox: $0
- Libsyn: $246 (Use promo code FIRE for the rest of this month & next free!)
- Repurpose House: $10
- UDemy Podcasting Course: $29
Other Resources: $237
- Amazon Associates: $105
- Other: $132
Total Gross Income in September: $160,879
Business Expenses: $8,907
- Advertising: $24
- Affiliate Commissions (Paradise): $45
- Cost of goods sold (Journals): $364
- Fulfillment: $348
- Consulting: $149
- Design & Branding: $0
- Dues & Subscriptions: $118
- Legal & Professional: $149
- Meals & Entertainment: $543
- Merchant / bank fees: $33
- Amazon fees: $1,046
- PayPal fees: $145
- Office expenses: $352
- Community Refunds: $2,891
- Promotional: $0
- Travel: $(500)
- Virtual Assistant Fees: $3,200
- Website Fees: $0
Recurring, Subscription-based Expenses: $2,989
- Adobe Creative Cloud: $60
- Accounting: $624
- Boomerang: $90 (team package)
- Authorize.net: $29
- Google: $75
- Cell Phone: $152
- CookieYes: $10
- GoDaddy: $44
- Internet: $68
- eVoice: $13
- Keap CRM: $232
- Insurance: $669
- Libsyn: $214
- Linktree: $6
- Taxes & Licenses: $505
- Patreon: $40
- Skype: $52 (annual fee)
- Shopify: $36
- Xero: $70
Total Expenses in September: $11,896
Payroll to John & Kate: $15,900
Wondering what we do with all of our net revenue? We share all in our April 2017 Income Report :)
Total Net Profit for September 2023: $148,983
Biggest Lesson Learned
This week we sent out an email with the subject line “Everything is about to change”.
If I’m being honest, I haven’t always been a huge fan of change…
Sure, sometimes change can be exciting! Maybe you’re getting ready to launch a new business, or you’re changing careers, or you’re moving to a new apartment.
And sometimes it can bring up feelings of fear and discomfort. Maybe your favorite trainer at the gym is leaving and you’re going to have to find a new routine with a new trainer, or maybe your best friend is moving to a new city and you have no idea what you’re going to do without them.
But what I’ve learned over the past several years – and more recently over the past nine months – is that change brings with it so many new opportunities.
Opportunities to grow, to learn, to mature, to gain new perspectives, to appreciate the little things, to challenge yourself, to try new things…
And something I’ve reminded myself of over and over again lately is that I get to decide how I react to and handle the changes that are happening.
I could not have been more excited when I found out I was pregnant back in March of this year. I felt so ready for it and was excited for the journey.
And here we are one month out from Baby Dumas’ due date, which is Nov 11, 2023 – A LOT has changed – and I know that A LOT MORE is about to change. Like, everything.
So as we dive into this new chapter with all the changes, we’ll continue to remind ourselves that change is a beautiful thing with so many opportunities to grow, to learn, to challenge yourself, and so much more.
Oh, and if you’re not subscribed to our newsletter, we’ve got a lot of great stuff headed your way over the coming months. Head over to EOFire.com to sign up today!
Until next month, keep your FIRE burning!
~ Kate & John
Note: we report our income figures as accurately as possible, but in using reports from a combo of Infusionsoft & Xero to track our product and total income / expenses, they suggest the possibility of a 3 – 5% margin of error.