June 2020 INCOME REPORT (Transcript)
I’m going to be sharing with you June’s income report, how being out of the office for maternity leave has impacted expenses, what “working almost not at all” actually means specifically, and what contributed to us having our best quarter ever.
This is a transcript of Work Less, Earn More, Episode 28. Listen to the episode here.
We became entrepreneurs because more than anything, we want freedom, we want to be in control of our own schedule, income, and life. But unfortunately, that isn’t always the reality of being a business owner. I’m Gillian Perkins, and I’m on a mission to take back entrepreneurship for what it’s supposed to be. In every episode, I’ll share with you how to get the most out of every hour you work so that you can work less and earn more. Let’s get to it.
Hey there, and welcome back to the podcast. Today, I’m sitting down to record an income report for you, and this is the first time I’m sitting down at my desk in just about a month, because right now I am on maternity leave, I had my fourth baby a couple months ago, and I’ve been taking some time off. But even though I’m not working almost at all, I still wanted to make sure that I recorded these income reports for you each month really to show you what’s possible when you build a sustainable online business, an online business that is able to run itself, it doesn’t demand you and your time and your presence constantly.
That’s exactly what I’m doing today. I’m going to be going over June’s numbers with you, how much money we made in June of 2020, how much I worked, because I did work a tiny, tiny little bit, and share that with you. And then contrast that with how much we made in May. And also because June was the last month of Q2 for 2020, I’ll be comparing Q2 to Q1. Before we get into all that, I just wanted to share a tiny bit with you about this past month. Like I said, I’ve worked hardly at all. I’ve just been checking in with how everything is going a couple times a week, so spending a few minutes each week on that. I’ve also done a couple sessions with some students that had sessions scheduled for May, but then when my baby came early, I wasn’t able to do their sessions, so we pushed their sessions out a month. But I didn’t want to make them wait any longer than that, so I did a couple of those wrap-up sessions that I needed to reschedule.
Aside from that tiny little bit of work, I’ve just been enjoying a lot of family time. I’ve been momming full time, which has been a really nice change of pace. Normally, I spend a lot of time with my kids, but I still work 10 to 20 or a little bit more hours every single week. And my husband takes care of the kids while I’m working. But lately, of course, I’ve just been spending every single minute of my life with my family pretty much. And that’s been so nice, especially with the new baby. So, more than anything, I think I’m enjoying the change of pace, especially since it’s summer. So, I hope that you are having a really nice summer as well, although I expect you’re working more than I am right now. I’ll be at it again in another month or so here, because we will start creating content again. And I am looking forward to that because I always do enjoy my work, but I’m also really enjoying this time and this change of pace.
Okay. So, with that brief mention, let’s get on into these numbers, because I’ve already taken a peek at them and I’m pretty excited to share them with you. Just so we’re all clear here, I haven’t been looking at these numbers all month. I’ve been trusting Courtney, my integrator, to track everything, and let me know if anything is amiss, she’s definitely been keeping me up to date with the runnings of the business, but she hasn’t mentioned anything to me about these numbers, because nothing was amiss. So, I haven’t known exactly how we were fairing, I just knew we were doing all right, but I looked at these numbers a few minutes ago and they’re a little bit better than I expected.
They’re better because while I expected everything to be fine, over the past few months, we have done a few different launches of different varieties, started new advertising campaigns and things like that. And all of those things have really been increasing our revenue and our profits, and we weren’t doing anything new this past month. We weren’t doing anything new in June. And so, I thought that our revenue and our profits were probably going to dip a fair amount, and go back to their previous lower levels. However, looking at these numbers now, spoiler alert, that’s not exactly what happened.
Now, I don’t want to get your hopes up too high, because nothing crazy happened, but it’s just a little bit better than I expected. Starting with those revenue numbers, first of all, our gross other income, which is income that doesn’t come from product sales. This is revenue that comes from affiliate promotions and comes from ad revenue, comes from the ad revenue for the YouTube videos and things like that, it was down a little bit from May, and that’s primarily because we weren’t doing any big affiliate promotion, because I wasn’t in the office, so there wasn’t any active live promotion going. And so compared to May’s other income of $13,400 in June we had $8,800 of other income. However, when I come down to the product sales portion of my profit and loss statement, I see that things did a little bit better than in May. In May our total product sale revenue was $30,500, but in June, our total product sales were $37,500.
Why exactly is this? How did we sell $7,000 more of products when I wasn’t even in the office, I wasn’t working at all, I wasn’t selling it all? Well, mostly this is because of the things that we set up prior to me leaving the office. Specifically, we set up a new product. It’s actually one of our Startup Society action plans. We broke it out of the Startup Society program and offered it as a standalone product so that people could purchase it and get a taste of exactly what the Startup Society and materials are like. It’s called attract paying customers, and we set it all up right before I stepped out of the office. And in the month of June, people purchased $1,200 of that product. Then aside from that new product, the product sales for all of our other programs were just up a bit. Channel launch sales were up to $9,500 up from $7,700 in May. Then our Startup Society memberships were up to $17,400 up from $16,000 in May.
Then another one that’s up is Video Creator Academy. We are now selling this program as a standalone program as well. And we earned $7,500 from that, compared to $4,800 in the month of May. So, as you can see, all of the different products and programs that we sell just did a little bit better than normal. And this is in part because we were optimizing those sales processes. In other words, we were tweaking the emails that sell those products, and we also were setting up new automations to sell those products to new segments. We also finally have our Facebook ads up and running and working. There have been a lot of struggles with the Facebook ads over the past few months, as we’ve tried to get them set up, everything from Facebook shutting down our advertising account for no reason, and then even admitting that it was a mistake in an email to us. They emailed us. They said, “We’re so sorry. This was a mistake. We will reinstate your advertising account.” Only they didn’t reinstate it.
We went back and forth with them for so long, but to no avail, because with everything that’s going on in the world right now, Facebook’s support is really bogged down. We finally ended up just setting up a new advertising account. And then even after we got that new advertising account set up, we were having issues with the tracking on the ads and different things. It’s been a lot of struggle to get them up and running, and honestly, it’s been expensive because we’ve had to continue to pay our Facebook advertising team, and we’ve had to continue to spend money on ads at some points in this process without much return, because we haven’t been able to scale them at all. But finally, the ads are up and running, we’re getting leads for under $2, and those leads are going into funnels that are definitely converting at a positive rate. So, those are all really good things.
In future months, I’m really looking forward to sharing with you some specific numbers on our rate of return on our investment. But because we just finally have those ads up and running now, we don’t have that data quite yet, but that will definitely be coming down the road.
All told for the month of June, our gross revenue was $46,431 compared to in the month of May, when we earned $44,000 in gross revenue. What that means is that June, the month when I essentially didn’t work at all, is now our second best month ever, beaten only by the month of April, when we had done a massive launch and was in fact our best month ever.
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Okay, now let’s get into the expenses. Of course, many of our expenses are pretty stable from one month to the next. However, when our expenses are higher, it’s typically because we are working on some sort of new project. Maybe we’re launching a new marketing campaign. Maybe we’ve brought on a new staff member. Maybe I’ve invested in a new course. Maybe I’ve hired a copywriter. Those are all things that make our expenses higher, basically, me being in the office, spending money on new projects. But since I wasn’t in the office in the month of June, I wasn’t doing that, and we weren’t starting any new projects. And so that means that our expenses ended up being a bit lower than they have been over the past few months.
To give you a big picture perspective on some things we did spend money on, we spent $4,100 on Facebook ads. We spent about $1,700 on various banking and merchant service fees. We spent $420 on our bookkeeping, $330 on software, just shy of $4,000 on content creation and podcast management, $320 on utilities, and then about $6,500 on our internal administrative team. Then the final item in the expenses report is the $5,000 paid to me in wages. Our total expenses for the month of June were $23,300, compared to $28,000 in the month of May. Our expenses were down about $4,500. When we add that increase in revenue to this decrease in our expenses, it means that our net profit ends up being a fair amount higher than in the previous month. In the month of May, our net profit was just shy of $16,000. Or, if we add that $5,000 paid to me in wages to the profit, then we end up with $21,000 in profit.
Now, in the month of June, our net profit was $23,000. Or, when we add that additional $5,000 in, $28,000. So,$ 21,000 in May versus $28,000 in the month of June, which is a pretty significant increase for any month. And it’s especially significant considering that I didn’t work almost at all in June.
Okay, that’s pretty much it for those numbers June versus May, but I keep saying over and over again that I almost didn’t work at all. Let me define what almost not at all was. Specifically, I worked three hours in the month of June. One hour of that was wrapping up a couple of tiny projects that hadn’t gotten finished before I left the office for maternity leave, and then one hour of that was just checking in with my team each week and cleaning out my email inbox each week. So, a total of three hours of work. Compare that to the 109 hours I worked in the month of May.
Now, obviously, the conclusion here is not that I earned more money because I only worked three hours versus in May when I worked so much more and I earned a little bit less. That’s not really what happened. What really happened is that over the few months, leading up to my maternity leave, up to and including the month of May, I was working a lot more than I normally do to set up a lot of things that would make me money while I was out of the office. If I had just worked three hours this month, I wouldn’t have made much money. But because I put in the hours in previous months, my business was able to continue to make money and even increase the amount of money that it made while I stepped out of the office.
The final thing that I want to cover in this episode of the podcast is a comparison of Q2 to Q1. June was obviously the final month of Q2 for 2020, and so now we can make this comparison. If you listened to the last income report, then you would have heard me mention that as of that time, Q2 was looking to be our best quarter yet. And in fact, now that the month of June has completed and we can see that it was in fact, my second best month ever, that was just the icing on the cake, the cherry on top, and that means that Q2 was definitely our best quarter yet. In that last income report, I shared some numbers from our past few quarters, and long story short, our revenue and our profits have been increasing every quarter, period. And that trend has continued now.
Here’s Q1 versus Q2 for 2020. In Q1, our gross revenue was $105,000, whereas in Q2, April, May and June, our gross revenue was a little over $144,000. That is a pretty significant increase, $40,000. And that means that we are earning significantly more every month. It also is just a pretty significant percentage increase from one quarter to the next. And here is… I was going to say that even better news, I don’t think this is actually even better news, but the additional good news, we spent less money in Q2. In Q1 of 2020, we spent $78,000. In Q2, we only spent $73,000. And just like when I was contrasting the months, now, adding together the increase in revenue and the decrease in expenses, it makes for a pretty big difference. In Q1, our net profit was $27,000. Or, when we add in the money paid to me in wages, that brings us to $41,000. Compared to Q2, when our net profit was $71,000, or with my wages added in, $85,000, like I said, our best quarter to date and a quarter when I only worked two of the three months.
As I’m sure you can tell, I am quite pleased with these numbers overall. I really feel like my hard work over the past few months paid off, and like I said earlier on, I was just hoping to go back to that base level. I was expecting the revenue and the profits to drop a fair amount, but I was okay with that, because I really wanted to take the time off, and I was just hoping that I had done enough work, that things could keep coasting without me, but I’m just so excited and thankful that things not only kept coasting, but actually just so far exceeded my expectations and continued to improve while I was gone. That of course had something to do with the hard work I put in, but also has to do with my amazing team that I am so thankful for, who has continued to run the show without me this past month and will continue to do so over the next month or so as I finished out my maternity leave.
So, thank you, thank you, thank you to them. I really couldn’t do it without them. Certainly, not in this way. Certainly, I couldn’t step away for this long and have my profits increase. A couple of years ago, when I had baby number three, I really didn’t have a team at all at that point. I had a couple subcontractors that I was outsourcing a couple things to, but they weren’t running my company at all. I didn’t have an internal team, and I did something kind of similar with my work schedule, leading up to that maternity leave. I doubled my working hours. Then my baby came early, just like this baby did. I took a couple months off. But when I was on maternity leave that time, my profits definitely did not increase. I kept making money, but not very much, because I wasn’t launching anything, and I didn’t have anyone running my business while I was out of the office. So, compared to this time, it really is quite a difference, and that is part of the reason why I am so thankful for my team.
All right. Well, that is everything for this income report and this episode of the podcast. Thank you so much for joining me today. I have really enjoyed stepping into the office today to share these numbers with you, and I hope you’ll be back again next week to join me for another episode of the podcast. It is an interview with Bridget Lyons that I recorded before stepping out of the office. Bridget Lyons is a publicity and PR expert. And in this interview, she shares strategies for getting more visibility for your business and for your brand. And specifically, I really put her to task in this interview and I asked her to share with us her best strategies for getting the most visibility with the least effort and the least amount of time required. Because if you have ever tried to use publicity or PR strategies, then you know they can be incredibly time-consuming. And it’s one of the main reasons why I haven’t used them very heavily in my own business, because I gave them a try, and I just found that I didn’t have the time.
I asked Bridget to share with us what we could do to take advantage of some of these really powerful strategies, but share with us the ones that would really give us the most leverage so that we could get the biggest bang for a buck, get the biggest results from the effort that we put in. And boy, did she deliver. Is a fantastic interview, and I know that you will find the strategies that she shares with us in the interview to be incredibly helpful for really getting your business and your brand more out there, so that more people hear about you, and ultimately so that you can generate more sales. Be sure to tune in next week to listen in to that interview with Bridget Lyons.
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Let’s wrap this up. I’m Gillian Perkins, and until next week, stay focused and take action.