May 2014 Income At-A-Glance
Gross Income for May: $144,860.50
Total Expenses for May: $42,394.22
Total Net Profit for May: $102,466.28
Difference b/t May & April: – $86,807.51
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 business owners every single month, we’re able to provide you with a single resource that tells you what’s working, what’s not and what’s possible.
There is a lot of hard work that goes into learning and growing as an entrepreneur, but the most important part of the equation is what you’re able to pass on to others through teaching. We’re passionate about helping you build the life you want to live, just like we have.
As you read through our day-to-day struggles and successes that help define our journey, focus on the lessons we’ve learned from these experiences. Our goal is to make your journey as enjoyable and successful as possible.
That’s not to say you won’t encounter roadblocks. Believe us – we know that no one can escape those no matter how much reading or studying you do. Just keep in mind that every roadblock is a building block towards your future success.
In summation, our monthly income report is all about helping you navigate your entrepreneurial journey in a more efficient and effective way. So let’s IGNITE!
**We’ll receive a commission on the affiliate links below.
CPA On Fire
Our CPA, Josh Baurle, Shares his May Income Report Tip!
What’s up Fire Nation? My name is Josh Bauerle, and I am 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 have been working with EntrepreneurOnFire to make sure their accounting systems are running smoothly and that their taxes are as low as possible. John and Kate have included me into the 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, my job doesn’t stop at the verification level. I will also be providing tax and accounting tips to you along the way!
This month, I want to talk about paying yourself as a business owner.
So you created a business, it’s starting to make a little money, and you’re beginning to wonder, “How do I pay myself for the work I’m doing?” This is one of the most frequently asked questions I get as a CPA.
First, let’s take a look at the way a business is taxed:
Unless your business is structured as a C Corporation, which 99% of you won’t be, your business is known as a pass through entity. This means that the business itself pays no federal taxes. Instead, the profit or loss from the business passes through to the owners and is taxed as a part of their personal tax return.
Let’s use EOFire as an example: In 2013, EOFire was structured and taxed as a Limited Liability Company (LLC). The business showed a taxable profit of about $285,000. Because it was a pass through entity, the business itself paid no taxes. The entire profit passed through to John, who paid taxes on it via his personal tax return.
So what does all this mean for paying yourself?
First of all, it means that you can pay yourself as much or as little as you want without it having any affect on your tax liability. Because you are taxed on the profits of the business regardless of whether you actually take the money out or leave it in the business, you can pay yourself as much as you want and incur no additional taxes.
This is a common mistake I see small business owners make: they are afraid to take money out and pay themselves because they don’t want to pay taxes on it. However, you’re paying taxes on it regardless, so paying yourself is not going to change the amount you owe.
Now let’s take a look at how to pay yourself:
How to pay yourself depends entirely on what type of entity your business is structured in. If you are a sole proprietor, a general partnership or an LLC, you will simply pay yourself by withdrawing money from the business account and depositing it into your personal account. These are known as distributions.
If you are an S Corporation, you will be required to set yourself up on an actual salary and issue yourself formal paychecks. This is typically done through the use of a payroll company.
Next month we’ll talk about the differences between various business entities, and also about which one is best for you. But for now, there are two takeaways when it comes to paying yourself in your business:
1. You’re taxed on the profits whether you take them out of the business or leave them in; and
2. The method of paying yourself depends on the business entity you are in, as noted above.
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!
What Went Down In May
As many of you know, John and I spent half of the month of May on a totally unplugged vacation in Europe. We hit 5 countries in 14 days with just ourselves and our backpacks – and it was incredible.
We started in Paris, then flew to Barcelona, next we took a train to Cinque Terre, then hopped up to Lugano in Switzerland, and finally, we ended in Prague. Every stop was as beautiful and inspiring as the last, but we both agree on our favorite… Can you guess what is it?
Wait a second: Kate… John… don’t you guys have a business to run?
Yes! And thanks to the systems we’ve created and the team we’ve built here at EntrepreneurOnFire, we were able to successfully make that happen without being in our inboxes or online the entire time we were gone.
We learned a huge lesson while we were away: unplugging is important. As entrepreneurs, we tend to always want to be involved – our business is our baby. But in taking ourselves away from our business, we were not only were able to recharge our minds and bodies, but we also gained a new appreciation for everything we do when we’re home.
But that’s not all…
We learned an even LARGER lesson when we returned: everything ran flawlessly while we were away – including our community engagement – proving that if you have the right systems in place in your business, and a solid team who can help – like JM and Jess – the sky is the limit.
We also owe a huge thanks to YOU for being so incredible, because this vacation would not have been possible without the support of Fire Nation. Not only did you support and encourage us to go unplugged while we were away, you also helped us keep the community hoppin’ the entire time! So on behalf of John and myself… THANKS!
Contrary to popular belief, being an entrepreneur doesn’t mean that you always have to be turned on, tied to your computer, or staring at your smartphone. If you want to learn more about creating systems in your business, check out our post on Creating systems that create freedom.
Online in a day
When our good friend Rick Mulready launched his new Facebook course, Facebook ADvantage, we were curious to see how his whole sales funnel was set up.
We went to his opt in page and signed up to attend his next live Webinar, which was awesome. During the Webinar, Rick talked about everything from Facebook ad capabilities to how to actually create them and optimize them yourself. Then, he pitched.
We clicked on the link to go to his sales page, took one look at it, and we were hooked. It was gorgeous! I mean, I don’t even remember the last time I saw a sales page that looked this good AND that had all the right information in all the right places. (His Facebook course is equally as awesome, by the way…)
Our first question to Rick: “How do we make our pages look like that?”
Rick told us about how he made it happen: with the help of a guy named Zach Swinehart who runs an incredible business with a cool speciality: Online in a day.
It pretty much means exactly what it sounds like: you and Zach set aside an entire day to work together, and by the end, you have your brand new sales page.
At first, I thought “Yes – we definitely have to do this for Podcasters’ Paradise!” But after my initial call with Zach, I figured if we’re going to do this with one of our pages, why not all three: Podcasters’ Paradise, WebinarOnFire and PodcastOnFire?
Next step: I had a briefing call with Zach, where we reviewed his process, and then talked in detail about what we wanted, how we wanted it and when we wanted it. Two days later, Zach and I were set to meet for two straight days to create 3 pages – and we did it.
Zach was really incredible to work with, and he’s not only a great designer and developer, he’s an all around great guy. He made the process easy and fun – the way all things should be :)
Check out the magic Zach worked on our three pages below, and if after reading this you think Zach might be a good connection for you, don’t hesitate to contact him directly and ask for the FIRE SPECIAL (you’re definitely going to want to check this out!)
Here’s a peek at the before and after for WebinarOnFire’s above the fold:
Here’s a peek at the before and after for PodcastOnFire’s About section:
And here’s a peek at the before and after for Podcasters’ Paradise Features section:
To check out all of our new pages, just click the links below! And always, we’d love to hear your feedback in the comments section.
EntrepreneurOnFire welcomes our fifth team member!
We have a VERY exciting announcement to make: John is launching another DAILY podcast this month! (I agree, he is CRAZY!)
John knows he can’t do this one on his own, so after a lot of searching and interviewing, he has officially hired our 3rd full time VA.
Our newest addition will be in charge of all editing, scheduling and publishing for the new Podcast, and we can’t wait to reveal all the details! Tune in to next month’s report for the launch announcement!
Being away and totally unplugged for two whole weeks this month was incredible, and that is definitely reflected in our hours worked this month. You can check out our recent post that I mentioned earlier on Creating systems that create freedom to learn how you can set yourself up for these same types of opportunities.
Big thanks to our RescueTime app for helping us keep track of our hours!
Kate’s May: 155 hours (vs. 265.5 in April)
Kate’s top 3 sites for the month (in order):
1. Infusionsoft / CustomerHub (our membership site platform)
3. EntrepreneurOnFire.com (includes backend time)
John’s May: 149 hours (vs. 267.5 in April)
John’s top 3 sites for the month (in order):
2. Microsoft Word
We also can’t forget about all the hard work and time that our two team members in the Philippines contribute! We literally could not be doing what we’re doing without JM and Jess.
Product/Service Income: $140,438.50
Podcasters’ Paradise: $62,023.50 (invoice total)
Create, grow, and monetize YOUR Podcast.
WebinarOnFire: $14,813 (invoice total)
Create and present a Webinar that converts.
PodcastOnFire: $859 (invoice total)
Create and launch your Podcast in 14 days.
Total Launch Package: $3,990
Looking to launch your Podcast? This is the TOTAL package!
The One Thing: $896
$7 mini training.
Sponsorship Income: $41,287
Fire Nation Elite Mastermind: $9,800
1-on-1 Mentoring: $6,500
Podcast Launch (Audiobook on Audible): $152
Podcast Launch (eBook on Amazon): $118
Affiliate Income: $4,422
- BlueHost: $2,550 (23 WP tutorials included with use of affiliate link)
- LeadPages: $513
- Authority Engine: $200 (ask for the Fire Special)
- Tim Paige Voice Over: $100 (ask for the Fire Special)
- Amber Ludwig-Vilhauer No Guts No Glory: $120 (ask for the Fire Special)
- Podcast Movement: $135
- Music Radio Creative: $147
- Wallaroo Media: $100
- Amazon: $491
- Audible: $73
- Other affiliate income: $140
**Affiliate links above
Total Gross Income in May: $144,860.50
Business Expenses: $41,123
- Advertising (mostly FB ads): $3,162
- Education: $126
- Meals & Entertainment: $1,140
- Merchant Account: $972 (SamCart)
- LibSyn: $118
- Other Business Expenses: $1,200
- Paradise Affiliate Commissions: $5,236
- Paradise Refunds: $14,268 (11% of April sales)
- The One Thing Refunds: $28 (3% of April sales)
- WebinarOnFire Refunds: $3,688 (17% April sales)
- PodcastOnFire Refunds: $0
- Software: $356
- TheMidRoll (Sponsorships): $5,675
- Total Launch Package Fees: $125
- Travel: $2,800
- Virtual Assistant Fees: $1,400
- Website Fees: $829
Recurring, Subscription-based Expenses: $1,271.22
- Adobe Creative Cloud*: $49.99
- Authorize.net*: $91.10
- Cell Phone*: $198
- Internet*: $171
- eVoice*: $9.95
- Infusionsoft CRM*: $437
- Insurance*: $172
- Quickbooks Online*: $25
- ScheduleOnce*: $42.19
- Skype*: $2.99
- Taxes & Licenses (for our LLC): $72
Total Expenses in May: $42,394.22
Total Net Profit for May 2014: $102,466.28
Can you believe this all came from the launch of a single Podcast? Are finally ready to start yours?
Don’t miss our brand spankin’ new Podcast Workshop that we are hosting next week on how YOU can create, grow, and monetize YOUR Podcast. Just last week we introduced the brand new content for the first time, and here’s what our attendees had to say about it:
Rob said: “This was a smart hour to set aside!“, and Dave added, “This is perfect for me! John is laying out exactly what I am working towards!”
Things We Learned In May
Work hard, play hard
In May we got to experience firsthand what it means to work hard and play hard. We took half of the month off to enjoy an incredible journey throughout Europe that included stops in 5 different countries over 14 days.
Throughout our entire journey, we didn’t touch our business once.
We’ve spent the last two years learning about podcasting, how to run an online business, and about entrepreneurship in general.
In fact, John started at square one with zero followers, no experience and no name.
Since, we’ve built a platform to support an incredible audience of hundreds of thousands of listeners and fans, along with countless relationships that help us drive our business every single day.
Thousands of hours have gone into building our brand, our team and a business that we’re very proud of, and there have been multiple times when that has meant sacrificing something that we may have wanted in that moment, for something that we want forever: freedom.
“Entrepreneurship is living a few years of your life like most people won’t, so that you can spend the rest of your life like most people can’t.” – Unknown
Work hard, play hard.
You will find a way – if you really want to
Anyone can make excuses.
- I don’t have the time;
- I don’t have the money;
- I don’t have the resources.
But have you ever noticed that when you’re between a rock and a hard place – when you’re faced with something that you really want – that you suddenly figure out some way, any way, to make things happen? On a large scale, it’s the same idea that we talked about in our post on The Baby Effect.
On a smaller scale, it’s the same thing we did in order to work with Zach.
Did I have two full days to dedicate to creating new opt in and sales pages? Well, I didn’t if I would have sat there and created a million excuses about all the other stuff I had to do. But we made it happen because we wanted it.
Next time you find yourself making excuses, stop and ask yourself: Is this something I really want? Maybe the task at hand isn’t something you necessarily want to do right now, but is that task something that will get you one step closer to whatever it is you really do want?
If you want it bad enough, you’ll find a way.
What are you currently making excuses for in your life or in your business?
The importance of constant improvement
When we returned from our trip, there was a lot for us to regroup on. We’ve had multiple things going on at the same time for a while now, like our weekly Webinars, launching new products like WebinarOnFire and PodcastOnFire, and running our Elite Mastermind, Fire Nation Elite.
We also have several systems running in the background that we know need to be revisited, like our auto-responder sequence in Infusionsoft, our opt-in giveaway that has been the same for a while now, and our campaigns for different nurture sequences that we have running.
It’s great to create systems, launch products and services, and have multiple campaigns running that help bring in thousands of dollars every single month. But it’s also critical that you revisit those systems, launches and campaigns in order to constantly improve what it is you’re offering.
I talked about our Online in a day project above, which is a great example of this. We’ve been using opt in and sales pages that I created from scratch using Optimize Press for months now. I’m neither a design nor a developer, but the pages worked for what we needed them for: to get things off the ground.
Now that we’re well on our way with all three of our products – meaning they’re all launched and ready for people to purchase and consume – we knew it was time to invest not only the money, but also the time, in improving things like our opt in and sales pages.
Could we have left them the same for a while longer? Sure. But without constantly improving what it is we’re putting out there, we’re never going to be able to continue to grow.
Constantly improving what you’re offering also lets your audience know that you care. Investing time in improving what you have to offer is the same as directly investing time in those you serve. And after all, serving others is what we’re here to do.
We have some more projects just like this coming up in the next several months, and we’re really exciting to share those with you as they happen – in real time!
What is your ONE goal for June that you WILL complete? Share it with us in the comment section below… Make it real and FOCUS!
Until next month, keep your FIRE burning!
~ Kate & John
PS: Click to Tweet… we’ll love you for it!