Welcome to my ninth freelance income report – for the month of May, 2015.
I almost eked out another win (i.e. increasing my income month-over-month), but fell a little short. I DID have my highest net income month, however and that’s what really counts!
A Little Backstory
I keep a profit-and-loss statement for each month, as well as a rolling total for the year. I enter in income as it is received (rather than as it is billed) and do the same for expenses.
Here’s what it’s looked like since I started:
- 2014: Income $16,512 income – $3,782 expenses = $12,730 total profit for 2014*
- January: Income $5,080 – $753 expenses = $4,327 profit ($4, 327 YTD profit for 2015)
- February: Income $5,272 – $978 expenses = $4,294 profit ($8,621 YTD rolling profit for 2015)
- March: Income $6,595 – $1,084 expenses = $5,511 profit ($14,132 YTD rolling profit for 2015)
- April: Income $7,503 – $2,471 expenses = $5,032 profit ($19,164 YTD rolling profit for 2015)
*I started looking into freelancing in April, 2014. I launched this site in May and secured my first client in June, 2014. So really the 2014 total is for June-December (or seven months). During this time, I also worked full-time at my day job. I’ve since quit my job and have been freelancing full-time since the first of the year.
After a meeting with my accountant (and an amended 2014 return in our favor), I now take 25% of my net monthly profit and transfer it into a savings account for taxes. I’ve been busy setting up an LLC turned S-corp this past month and will begin payroll practices later this year.
I also believe in tithing. Since I sold my business, I’ve decided to tithe to our church on that income and continue to support the missionary family in Costa Rica on my freelance income for 2015.
It makes a direct impact into an amazing mission (they’re setting up a daycare to take care of children, so their parents don’t have to bring them with to pick coffee beans, which surprisingly can be very dangerous!). It’s also a fun reason to try to make more money!
Income: $7,368, a 2% decrease month-over-month.
Expenses: $865, much more inline with where they should be!
Net Income: $6,503 (after expenses, but before tithe/tax). This is a 29% increase month-over-month!
Virtual Assistance Work: 54%
Course Sales: 19%
Consulting (former office): 3%
Other: (Affiliate, etc): 1%
My base expenses are now about $300 per month. Here’s what it includes:
- Job Board Membership $20
- FreshBooks $20
- Coaching $200
- Website Support $35
- MailChimp Subscription $15
You’ll notice that my expenses are higher than $300. They actually came in almost triple that or $865. Here are a few additional things I spent money on in my business in May:
- Affiliate Payouts $147
- LLC Filing $155
- Hosting Renewal $108
- Facebook Ads $21
Of course, there are still those pesky fees when getting paid, but I’m continuing to try to limit them as much as possible. Last month they amounted to ~$137, which is 16% of my total expenses. I certainly could find another way to spend that money, couldn’t you?
Thoughts on the Month
May was overall another pretty solid month. I tried to take my first vacation as a freelancer (post to come later this week) and was able to work ahead for the most part.
I didn’t take on any new regular writing clients, but did have a few interviews that I hope pan out into something in June. I also had my last consulting day at my former office, so all income going forward should be a direct result of my online business activities.
Goal for June
I’ve read that it’s good to have a singular focus in business. I’m going to try and do that more often.
So for June, it’s my goal to sell 50 courses (30 Days or Less). If you’ve been on the fence and haven’t taken it yet, here’s a special treat for you: a link to purchase it for 20% off (this brings it down to its lowest price, $37.60). It normally retails for $47.
I have almost 30 people enrolled in my affiliate program. I love incentivizing people. The commission should be enough, but in case it’s not, I’m also running a contest for June. The person with the most sales (minimum of five) wins a Keurig (or cash equivalent), in addition to getting paid their normal commissions.
If you’ve been following my work for sometime and would like to offer my course as an affiliate, you totally should! It’s super simple to sign up (just click here).
I recently redid my newsletter subscription autoresponder too. Instead of one email after sign up (and free ebook delivery), the subscriber now receives three over the course of a week or so. I’m hoping my strategy pays off and they gain additional value, insight and trust for the content I work hard to put out.
Summer is here! In Minnesota, we’ve been waiting for warmer weather, oh you know, FOREVER! So when summer hits, so does travel season.
And while travel season is fun, it can also get in the way of doing business. I’m still waiting on my sweet Karma (go anywhere) hotspot, which should make it a little easier.
When I travel to my folks’ cabin, for example, I have to travel eight+ miles one way just to get internet access. It makes for a great and easy way to unplug, but not a convenient workation.
We’re not taking our Epic RV Adventure this June, after all. It came down to paying off our last (non-mortgage) debt or the trip and the prudent ex-financial advisor in me couldn’t pick the trip! Don’t worry, we’re committed to making it happen in 2016 though!
Keep Taking the Next Right Step
If you’re currently hustling to build a business, we’re in this together. I’d love to support you, if you’re willing to do the same.
Leave a comment letting me know we’re in the trenches together or a place that I can go to support you.
What did you accomplish in May? Share in the comments!