How Sales Translate to Income - Part II

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Welcome to another issue of Passionate Income.

In today’s follow-up issue (Part I here), we’ll be discussing what kind of take-home income you can expect from different types of Internet businesses.

Let’s dive in.

If Part I of this series, we discussed the net profit - and potential take-home income - you could expect from four types of businesses:

1. eCommerce

2. Drop Shipping

3. Freelancing

4. Running an Agency

And in today’s issue, we’ll run the same numbers based on four new ones:

1. High Ticket Coaching

2. Info Product Seller

3. YouTuber / TikToker

4. Amazon KDP Publisher

For each model, we’ll show the average net profit, the expenses involved in generating $100k per month, and how much take-home income someone would have if that business were to generate $100,000 per month (which we’ve chosen for the sake of using round numbers).

#5 - High Ticket Coaching 👊

On the positive side, it’s possible for coaches to generate $50k to $100k per month without running ads. And because of that, it’s possible to run a 7-figure coaching business at 90-95% profit margins.

Keyword: Possible

In reality, 99% of coaches make less than $10k per month.

Mainly because they struggle to generate enough leads. Meaning, to succeed, most coaches should be running ads (which can increase your monthly expenses by thousands if not tens of thousands of dollars).

Either way, here’s how the numbers break down for a 7-figure coaching business:

Avg. Net Profit: 30-95%

$100k Monthly Revenue Breakdown:
Employees/Contractors: $5k - $20k
Marketing/Advertising: $10k - $30k
Payment Processing Fees: $3k
Website/Hosting: $100
Salesperson Commissions: $10k - $15k

Approximate Take Home Income: $35k - $55k per month*
*For a 7-figure coaching business.

#6 - Info Product Seller 🖥️

On the surface, coaches and info product sellers fall into the same category: Experts.

Where their business models differ is how they deliver their expertise.

While coaches charge anywhere from 4-6 figures for their services, info product/course sellers package their expertise in a Do It Yourself format.

And because of that, most info products/courses are priced anywhere from $7 to $2,000 (with $2,000+ being the point at which most people want to talk to a human before pulling out their credit card).

Regardless, making bank with info products requires volume.

While a high ticket coach can hit $9,000 per month with 3x clients at $3,000, doing that same $9,000 with a $30 course would require 300 sales.

Meaning, similar to coaches, most info product sellers have to run ads to make a full-time income. Except unlike coaches, info product sellers don’t have the profit margins needed to compensate for a poor-performing funnel.

So to avoid losing money on ads, most info/course sellers have to hire more advanced copywriters and media buyers (which increases their staffing costs).

Avg. Net Profit: 25-95%

$100k Monthly Revenue Breakdown:
Employees/Contractors: $5k - $25k
Marketing/Advertising: $25k - $60k
Payment Processing Fees: $3k
Website/Hosting: $500
Fulfillment/Shipping: $0

Approximate Take Home Income: $10k - $30k per month

*As of this writing there are some people making bank selling info products organically on TikTok (via TikTok Shop). So if you’re good on video and work in a niche where info products sell, you may want to check out TT.

#7 - YouTuber / TikToker 🎥

Any Mr. Beast wannabes out there?

While there are different ways to monetize an organic audience, the most obvious is through Ad Revenue Shares like what YouTube, TikTok and now X offer.

On average, here’s what creators earn per million views:

• TikTok: $20 - $40 / million views

• YouTube: $1,610 - $29,300 / million views

• X (fka Twitter): $7 / million views

As you can see here, your earnings can fluctuate dramatically depending on both which platform you’re on and the platform itself.

Either way, the main cost associated with being a creator is (surprise!) content creation. Which, when it comes to video, can cost nothing (if done on your smartphone) or 6-7 figures per video (like what Mr. Beast does).

So, while the numbers can fluctuate greatly, here’s what a hypothetical 7-figure creator can expect:

Avg. Net Profit: 35-95%

$100k Monthly Revenue Breakdown:
Employees/Contractors: $10k - $35k
Video Props / Travel / Etc: $0 - $20k
Home Studio / Equipment: $500 ($6k per year average)
Approximate Take Home Income: $35,000 to $70,000 per month

#8 - Amazon KD Publishing 📚

As someone who published my first book in November, this is one model I’m painfully familiar with. Sadly, between paying for ads and Amazon taking their cut of the sales, it can be incredibly hard to earn a full-time income with books.

Because of that, we’ve updated this projection to reflect $10k in post-Amazon royalty, but pre-expense revenue.

Avg. Net Profit: 10-35%

$10k Monthly Revenue Breakdown:
Book Creation: $25 - $2,000
Marketing/Advertising: $2,500 - $7,500
Payment Processing Fees: $0
Website/Hosting: $25

Approximate Take Home Income: $0 - $3,500 per month

💡 Takeaway: If you're new to business it can be easy to see a guru flexing revenue screenshots and think that's how much income they take home. But after expenses, most owners net a mere fraction of their top-line sales.

So if you see yourself getting caught up in the hype, ask what someone's profit margins are before blindly diving into their scheme.

I'll leave you with this quote…

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