Everybody and their mother wants to make six figures. Right?
In my last full-time job I made $45,000 a year. Break that down to a monthly salary after taxes and we’re talking about less than $2,812.50.
So the thought of $100,000 a year is AMAAAAAZING. Even when you take out taxes, that’s . . . $6,250.
Wait, really? That seems kinda low, doesn’t it? Yeah, it’s more than double the $2,812.50 I used to make. But taxes are a bitch, aren’t they? (And that’s calculating approximately 25% – it’s a lot higher in some countries.)
OK so that’s $6,250 a month in my bank account, right? Nope. That doesn’t include expenses.
How much are expenses for an online business that runs out of your home?
From January to May 2015, I’ve invested about $9,000 in my business (including my health insurance, which is $260 a month). That does not include the trip to a conference in May, which cost me about $1,500 between the hotel, meals and other travel expenses. It didn’t include my ticket from Buenos Aires, which I paid for mostly with miles.
In that same time frame I made $30,541.
(To give you a bit of context, I started doing freelance work on the side in October 2013, launched my site in January 2014 and went full time in May 2014. So these have really been Months 6-12 of being a full-time business owner.)
You can see we’re not talking about the expenses of a 6-figure business, at least not yet. But that’s more than 33% of my revenue! Remember that I also have to pay taxes on that $30,541. (And yes, I am aware that I can deduct my expenses from my taxes. But I like to err on the side of caution to avoid being smacked with a tax bill I haven’t saved for!)
I’ll be the first one to tell you that I’m probably spending too much in my business . . . I guess time will tell. I invest in Facebook ads so that I can talk about my results on the blog, and I pay for more tools than I probably need.
I’m not gonna lie: I’m nervous about what you’ll think of me now that you’ve seen my business without any clothes on. Sharing this stuff isn’t easy; I get that most people aren’t willing to do it.
And that’s why I created the Get Paid Podcast. Because people will try to sell you coaching, consulting, or products to help you get to six figures, and I want you to understand what exactly that means. I want you to be prepared for what you may have to spend to be “successful” since that seems to be the barometer for success.
A lot of my guests (like Tara Gentile and Becca Tracey) are certainly bringing home a lot of bacon, even after expenses and taxes and whatnot. And there’s a lot that you and I can both learn from them.
But you’ll also be hearing from a woman whose business made $150,000 last year, but she took home less than $40,000. Or a guy that makes a tremendous amount off of ebooks, but has just started to pay himself $500 a month from the software company he’s building.
This season on the Get Paid Podcast, we’ll be diving into different business models, and the breakdown of their revenue, expenses, team structure, and marketing channels. You’ll hear the humans behind the numbers, what they know they aren’t so good at, and the things they’ve tried along the road of growth.
And you’ll hear about me – hey there! – and the reality of my own business. I have a LOT to say that doesn’t really fit in with the Facebook ad tutorials you’ll find on this blog.
How to Listen to the Get Paid Podcast
I would say that my relationship with my husband improved when I started listening to podcasts. Why? Because podcasts make dishes more than bearable – they’re actually fun! So getting me to contribute to the housework is easier when I’ve got great episodes to help pass the time/
All the episodes of the Get Paid Podcast will be easy to find on my site at clairepells.com/podcast, and you can listen to them right there if you like.
Here are some easy-access links to the existing episodes:
Want to get the episodes on your phone or tablet so you can tune in when you’re away from your desk?
The easiest way to do that is to subscribe to the show; the episodes will download automatically to your device when they go live.
If you’re not sure how to subscribe, click here to get step-by-step instructions!
I can’t wait to hear what you think!