Nov 2019 Income At-A-Glance
Gross Income for Nov: $146,249
Total Expenses for Nov: $38,781
Total Net Profit for Nov: $107,468
Difference b/t Nov & Oct: -$48,886
% of net profit to overall gross revenue: 73%
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.
**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.
Josh Bauerle’s Monthly Tax Tip
What’s up Fire Nation, my name is Josh Bauerle. I’m a CPA and the Founder of CPA On Fire, where we specialize in working with entrepreneurs to minimize their tax liability while keeping them in line with the ever-changing tax laws.
I’ve 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!
Josh’s Nov Tax Tip: Should you pay your spouse a wage?
If you own a business and have a spouse, chances are you’ve wondered at some point if it would be beneficial to have the business pay your spouse a wage. After all, it would be a deduction for the business!
And since a Podcasters’ Paradise member had that exact question recently, we figured it was a great time to attack it on an income report!
On the surface, paying your spouse seems to make sense: you move income out of the business, increasing your business expenses, while putting more money in your own pockets.
But the truth is that doing so will actually COST you money, not save you money on taxes.
First, there is no actual tax deduction for paying your spouse.
While you would be able to deduct their salary in the business, you would then have to turn around and claim it as income on your personal return.
So the net impact on your taxable income would be nothing.
Second, the act of paying your spouse wages would subject that income to payroll taxes, which it otherwise would not have been.
Those payroll taxes are about 15 percent, so it’s no small number.
Part of those taxes will be deductible in the business, so the net tax impact isn’t quite that high, but it’s still an increase, not a decrease, in taxes when you pay your spouse.
So is it always a bad idea to pay your spouse?
Nope! There are always exceptions where it makes sense.
The big one being that you have a company retirement account (401k or SEP), are already maxing out your own contributions, and you want to continue contributing more.
By putting your spouse on payroll, you can now make contributions to their 401K as well.
As with most accounting and tax questions, the question of whether or not you should pay your spouse has a lot of “it depends” components.
But the big things to note are that doing so won’t decrease your taxable income, won’t decrease your taxes, and will very likely actually increase your taxes. So don’t make this decision lightly!
As always, please feel free to contact me if you’d like to discuss what would be best for YOUR business. I LOVE chatting with Fire Nation!
David Lizerbram’s Legal Tip
Who Should I Ask to Sign an NDA?
Non-Disclosure Agreements, or NDAs, are one of the most common types of business documents. The purpose is simple: to prevent one party from disclosing the confidential information of another party.
Business owners are sometimes confused about NDAs and who should sign them, so let’s go over some of the basics.
What is Covered?
An NDA can cover any information that your company owns that’s confidential. These are referred to as “Trade Secrets”.
Items covered by an NDA may include:
- Lists and contact information of customers or clients
- Business plans, including future product or service launches
- New ideas and inventions
- Fees and costs
- Marketing and advertising information
- Computer software
- Confidential information of third parties, such as your company’s clients
Mutual or One-Way?
NDAs come in two basic flavors: mutual or one-way.
A one-way NDA is appropriate when your company is sharing information with someone but they aren’t sharing any confidential info with you. An example may be a potential employee – she is learning about your company through the hiring process, but she may not be bringing her own confidential information to the table, so asking her to sign one-way NDA would be appropriate.
A mutual NDA is recommended when both parties are sharing confidential information. For example, if your company is entering into a strategic partnership with another business, you may want to sign a mutual NDA so both parties’ trade secrets are protected.
Who Should Be Asked to Sign?
In most cases, anyone who’s going to be exposed to your company’s confidential information should, ideally, sign an NDA.
However, there are a few exceptions.
For example, attorneys don’t typically sign NDAs. Almost all information you share with an attorney is already privileged and confidential, so in most cases, there’s no need to have the attorney sign an NDA.
When to Ask?
This part can be tricky. For example, let’s say you’ve developed a concept to help a big company sell more of their products. If you call up their corporate office and ask them to sign an NDA before they even know who you are or what you have to share, you probably won’t get a good response.
So in some cases, part of the confidential information may need to be shared before the other party is likely to sign an NDA.
On the other hand, if your company is established and you have a solid professional reputation in your industry, you’re more likely to be able to get an NDA signed before you disclose anything.
Bottom line: use your best judgment, and if the other party is resistant to signing, discuss the details of the document with them to find out what the real sticking point is.
NDAs are an important part of a business owner’s toolkit. If you need assistance creating or reviewing an NDA, please feel free to contact me!
What Went Down In Nov
Knowledge Business Blueprint Bonus Mastermind
In February 2019 we teamed up with Tony Robbins and Dean Graziosi as affiliates for the launch of Knowledge Business Blueprint: an online course that teaches you how to create and run your own mastermind.
As a bonus for those who were early action-takers we offered a 2-day in-person mastermind here in Puerto Rico, and in November, we hosted that mastermind!
This was the biggest in-person event we’ve ever hosted with 35 people in attendance, and we have a lot of takeaways from this experience, which we’ve outlined below for you.
At the end of the day, this bonus mastermind could not have gone any better!
From start to finish the energy was high, every individual showed up in such a BIG way, the value shared was off the charts, and we’re so confident that the connections and friendships made will last for years to come.
Biggest Takeaways from Hosting our KBB Bonus Mastermind
1. The Lead Up
The lead up to your mastermind event is critical. During the lead up, which ideally will start at least 2 months prior to your event date, should include regular updates and communications with info to help your attendees feel prepared.
This could be anything from travel tips, to info about the area where you’ll be hosting the event, to details about your itinerary, and even simple notes just letting your attendees know you’re there for them if they have any questions!
2. Comfort + Connection
Making sure your attendees are comfortable within your mastermind environment and feel empowered to create connections on their own is HUGE.
Whether you create a Private Facebook Group leading up to your event – where attendees can get to know one another and introduce themselves beforehand – or you host a “pre-meetup”, like a mixer or dinner the night before your mastermind kicks off, creating a safe space where everyone is comfortable will make a huge difference.
The planning and preparation that goes into hosting a mastermind cannot be understated. If you do not feel this is your strong suit, or you know you don’t have the bandwidth to do it right, then I highly encourage you to ask for support or delegate this part of the process.
- How many people will be attending?
- Where will you host your mastermind?
- What meals will be included?
- Where will people stay?
- What extra touches will you provide?
- How will you manage your budget for the event?…
These are just a few of the questions you should be asking yourself (or that someone on your team should be held accountable for).
4. Your Energy
How YOU show up to the mastermind will influence the space, the feel, and the attitude in the room. Make sure you’re 100% ALL IN on making your event everything you want it to be (and what your attendees expect it to be).
5. Switching Things Up
This is dependent on how long your event will last, and how active your event is meant to be.
The bottom line is: no one wants to be cooped up in a stuffy room with no windows for 8 hours. So whether you take an afternoon break outside, do lunch in a different room, or give your attendees sufficient breaks to move around, make sure you’re switching things up.
6. Above & Beyond
You’ve set a certain expectation for your mastermind – whether you know it or not. All of your marketing, communications, and your touch points leading up to your mastermind have set an expectation for those attending.
Make sure you not only understand what that expectation is, but be prepared to go above and beyond that expectation come mastermind time!
It’s hard to believe our Bonus Mastermind has already come and gone, and with all the lessons learned and the incredible feedback we got from those who attended, we’re already brainstorming what we can put together next time around!
November was like a big sandwich: we hosted our own mastermind, hosted John’s parents in town for 2 weeks, and then participated in another mastermind!
Hi! JLD jumping in here…
I remember seeing this post a few years ago focused on the time you have left with your parents. By the time you leave the house at 18 (for those who did) you have spent over 80% of the time you will ever spend with your parents.
That means that from 18 on, the time you have left in your parents presence is likely MUCH less than you think.
Since then, I’ve really made a point to not just spend time with my parents, but to be PRESENT when I do.
Card games, hikes, conversations.
You’ve gotta check out the day hike and cliff jump we did with a crew from our community to San Cristobal Canyon! Thanks to my buddy AJ Mida for filming the day!
For two weeks my parents visited us in Puerto Rico and I enjoyed waking my mom up with a coffee every morning, and going on a couple intense hikes and snorkel adventures with my dad.
For those of us with parents still alive, we’d like to think we have a lot of time left… and if we make a point to make the time, we do. Otherwise, time has a way of slip-sliding on by.
JLD Out ;-)
November was a mastermind-heavy month for us here at Casa Roble!
Towards the end of the month we were honored to be invited to participate in a peer-to-peer mastermind with some incredible entrepreneurs in the online space right here in our own backyard (literally!)
Mike Michalowicz, Sally Hogshead, Jon Berghoff, Mike Agugliaro, Carolin Soldo, Selena Soo, Chris Winfield, John Ruhlin, Tuan Nguyen, Jen Gottlieb, Team Fire, and our fearless leader, Amber Vilhauer all joined forces to spend an incredible 10 hours together.
Not only did we get to see Jon Berghoff’s genius in action with facilitating the day, we got to deep dive into truly getting to know each and every individual who was here.
My biggest takeaway of the day was that you can still take action and make meaningful moves towards your goals without having to build a detailed plan for every single step of the way. Your plan will reveal itself if you just start taking action.
Hi! JLD jumping in here…
My biggest takeaway of the day was you can’t try to resonate with everyone. There were so many diverse personalities in the room. Everyone appeals to different people for different reasons.
Remember this quote: “Love me or hate me, there is no money in the middle.”
Stop trying to live in the middle.
Yes the audience is ‘bigger’ there, but they’ll never be YOUR audience.
Go find your 1,000 true fans who LOVE YOU!
Product/Service Income: $117,450
TOTAL Journal sales: 522 Journals for a total of $14,068
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Amazon: $4,426 (176 Freedom Journals sold!)
- Total: $4,718
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Amazon: $2,618 (109 Mastery Journals sold!)
- Total: $2,753
The Podcast Journal: Idea to Launch in 50 Days!
- Amazon: $6,597 (228 Podcast Journals sold!)
- Total: $6,597
100 Day Goal Journal: $2,397
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Recurring: $15,490 (209 monthly)
- New members: $9,334 (22 new members)
- Total: $24,824
Real Revenue: Turn your BIG IDEA into Real Revenue
- New members: $630 (14 new members)
The Revenue Crew: An Elite Mastermind ON FIRE!
- Currently closed to new members
Podcast Sponsorship Income: $75,350
Free Courses that result in 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: $28,799
*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: $20,394
- Audible: $157
- BlueHost: $165 Step-by-step guide and 23 WordPress tutorials included! Disclaimer: This is my affiliate link and I will receive a commission if you sign up through my link
- Click Funnels: $19,819
- Coaching referrals: $0 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
- ConvertKit: $68
- Disclaimer Template: $185 (legal disclaimers for your website)
- Fizzle Mastermind: $0
- Virtual Staff Finder: $0
Courses for Entrepreneurs: $6,004
- Knowledge Business Blueprint by Tony Robbins: $1,167
- Create Awesome Online Courses by DSG: $824
- Digital Course Academy by Amy Porterfield: $1,621
- Boost Blog Traffic by Jon Morrow: $0
- Opesta by Ethan Sigmon: $0
- Closers On Fire by Dan Lok: $2,242
- ASK by Ryan Levesque: $150
Resources for Podcasters: $2,081
- Pat Flynn’s Fusebox Podcast Player: $111
- Podcasting Press: $480
- Designrr: $0
- Tim Paige’s Make My Intro: $0
- Libsyn: $647 (Use promo code FIRE for the rest of this month & next free!)
- UDemy Podcasting Course: $44
- Creative Live Podcasting Course: $799
Other Resources: $320
- Amazon Associates: $245
- Other: $75
Total Gross Income in Nov: $146,249
Business Expenses: $35,476
- Advertising: $0
- Affiliate Commissions (Paradise): $2,865
- Accounting: $961
- Cost of goods sold: $2,932
- Charitable Contributions: $100
- Fulfillment (Shipwire): $1,173
- Design & Branding: $0
- Dues & Subscriptions: $92
- Education: $4,336
- Legal & Professional: $272
- Meals & Entertainment: $1,331
- Merchant / bank fees: $1,905
- Amazon fees: $10,215
- PayPal fees: $644
- Shopify fees: $10
- Office expenses: $1,025
- Community Refunds: $1,191
- Promotional: $1,616
- Travel: $1,771
- Virtual Assistant Fees: $2,942
- Website Fees: $95
Recurring, Subscription-based Expenses: $3,305
- Adobe Creative Cloud: $100
- Backblaze: $110 (annual fee)
- Boomerang: $50 (team package)
- Bonjoro: $45
- Authorize.net: $70
- Cell Phone: $675
- Google Suite: $50
- Internet: $80
- eVoice: $10
- Infusionsoft CRM: $309
- Insurance: $648
- Libsyn: $223
- Chatroll: $49
- Shopify: $68
- Soundcloud: $144 (annual fee)
- Linktree: $6
- Sumo: $29
- TaxJar: $19
- Taxes & Licenses: $523
- Thrive Cart: $37
- Zapier: $15
- Xero: $30
- Zoom: $15
Total Expenses in Nov: $38,781
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 Nov 2019: $107,468
Biggest Lesson Learned
Setting boundaries and getting clear on what YOU want in your life is the fastest way to time freedom.
Wish you weren’t so overwhelmed all the time?
It’s up to YOU to choose how you spend your time.
If you continue to say yes to things that don’t light you up – and that aren’t helping you get closer to your goals – how do you expect to feel when you have no time left for you?
You can change that with boundaries.
I just finished reading a great book by Tonya Dalton called The Joy of Missing Out.
There are so many incredible tips and points she makes throughout her book, and this one stuck with me in relation to setting boundaries:
“Give each role in your life the opportunity to shine. Boundaries allow you to do that. When we don’t clearly stake our boundaries, we end up being overrun by the demands others put on us. And to be honest with you, it’s not really their fault. If we don’t communicate our boundaries, how do others know when they’ve crossed them?”
Think about the boundaries you’ve set in your life. Are they truly representative of the way you want to be spending your time? If not, it’s time to sit down, take out a piece of paper, and start brainstorming how you’re going to give each role in your life the opportunity to shine.
Alright Fire Nation, that’s a wrap!
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.