Income Report – December 2014 – $511,000

Income Report For December 2014

It’s been awhile since we publicly analyzed the income of my businesses. That’s been intentional. As we wrap up the income reports for 2014, I confess that I have mixed emotions for maintaining these income reports.

For awhile, I decided that I was no longer going to keep doing income reports. Then people told me how much reading them helped them in their own businesses.

On one hand, it is incredibly beneficial to see the growth (and the steps that it took to achieve that growth) of real-life businesses. They are also great for branding and for traffic. At the same time, it feels a lot like a bragging contest, and no matter how hard I try to keep disclosures on the income, people make certain judgments when they see how much you make.

Therefore, I need your help…

Tell me in the comments: moving forward, how can these income reports best serve you? Please let me know in the comments, because I’m considering making changes to their current format, or possibly removing them altogether. Or, heck, if you love them exactly as they are, please tell me that, too.

Now, let’s move onto the income report for December 2014…

Intro To Income Reports

Each month, I (Ryan) publish an income report from my various businesses and income sources. As you know, I generate cash from online businesses, and then I invest the profits into both other businesses and more traditional “investments”, and these reports record the results of my income sources and the investments.

Why share numbers and specifics?

In my years of teaching and practicing entrepreneurship, the most educational pieces have always been examples and follow along reports. Sharing the details of business seems to transfers theory into reality, and it is my hope that this will inspire you and educate you to be more free and more fulfilled.

There are a few things that you should know while reading these income reports:

1) I am terrified of details. Numbers are not my strength – creating new things is my strength. Reporting every dollar and expense would drive me crazy, so I often round or provide estimates; this is not to mislead or stretch the truth, it is because my brain is trained to get an overall picture, and then measure progress. The exact numbers often escape me, and I do not care to get them exactly right every time.

2) Only a portion of this revenue goes into my pocket. These reports are not intended to show you how much money I am personally making, they are to report on growth, challenges, and the things that affect both. I have business expenses, a handful of great employees, and wonderful partners who share in the workload and in the profits. If these reports were an attempt to brag about how much *I* make, I would have absolutely zero interest in doing them. Truth be told, I live on a very modest salary and invest the rest.

3) Both the highs and the challenges are shared. Wealth and freedom is not a straight line up – you will have bumps and setbacks along the way. If ever there is a reduction in the results that are being realized, it does not mean that something “does not work” or has failed, it is simply a reflection of the current marketplace. I will do my best to report on why certain numbers are up or down in a given month.

Why not share all of your business names and websites? 

Sometimes, I will share the specifics of the businesses that I own, along with the products and services that they offer, but this (for now) will be the exception, rather than the rule. While I would happily share the details of everything that I do, I often protect certain details out of respect for my partners and for the protection of certain creative endeavors.

Men’s Health And Fitness Company – $254,000

My men’s supplement company is my oldest venture that started on Amazon.com. I’ve outlined exactly how this company was build in previous podcasts.

December was a strong month for this company, mostly due to an increased market share on our existing products. We did release a new product (our sixth), but most of the gains came from increased sales on old products. I’ve found products can take as long as six months to really gain traction in the marketplace before they reach critical mass, and some of our older products started to reach this market.

What finally got us over the hump on those products was reaching a competitive number of reviews compared to our competitors. For our products, that was north of 300 reviews.

We continue to deal with an aggressive amount of fraud in this business. If this trend continues, I have concerns about the long term health of Amazon as a company. 

What’s next? For more than six months, we have been working on developing our own sales channels separate from Amazon. We have failed miserably. It has costs us tens of thousands of dollars, and we have little to show for it. Our main goal in 2015 is to address this. This past month, we changed personnel and hired someone to manage this process, and we’re confident that this person is the right one to correct this. In addition, we expect that our market share will continue to increase on our existing products, and we have a mass market product launch planned for the end of January.

Zen Active Sports – $23,000

This is the last time you’ll see Zen Active Sports in the income report. Why? We have sold the company! 

We’ve outlined the growth of this company in previous podcasts, and now we can add “sold the company” to its history.

We enjoyed a nice Christmas bump in sales on our yoga products, and January is the last month that Sean and I will be in charge of this company. While I cannot disclose the details of the transaction at this time, I will share more after the close of the company.

What’s next? Selling the company. 🙂

NOTE: To hear the step by step plan that my partner (Sean) and I created for this business, listen to this podcast episode

Supplement and Nutrition Company – $32,000

FINALLY!

This company had a major breakthrough in December that was a huge shot in the arm.

Over the last year, this company has taken MUCH longer than we expected to be significantly profitable. This month, we decided to be aggressive and kick down doors to get to the next level.

We finally had that breakthrough in December 2014.

I’ll document our breakthrough in a future podcast, but it came from simply following the plan. We had previously attempted to be too fancy, but going back to the plan (and doing it aggressively) worked in our favor.

Most notably, a temporary price drop inflated sales enough to rank higher in Amazon’s algorithm. That spurred a lot of “a-ha” moments.

What’s next? We are keeping up the aggressiveness. We’re finally at a point where this company will break through to beyond $50k/month, opening up the opportunity to pay ourselves (finally!).

“Personal Brand” Revenue – $192,000

This section accounts for all “other” income resulting from my own products, coaching clients, and the like, and this month was certainly the best month in history for my personal brand.

Although I let go the one client that I kept on board, I had a major affiliate payment, as well as deposits made for my first small event in March.

This year, the emphasis of my personal brand will be on this blog and podcast, regular live events in Austin, TX (more on this later), and my private mastermind.

NOTE: Moving forward, access to the Tribe will be available to people who attend our live events throughout the year. More details for these events will be available in February, 2015.

Stock Portfolio Value: $36,000

My portfolio enjoyed a nice bump this quarter due to growth in my existing positions. Since my money is currently being invested into real estate, I have not added any additional cash into my portfolio in the last few months. That will change as soon as all of my rental homes are rented and producing revenue.

I am currently invested in the following:
AGNC
V (Visa)
AMZN
JBLU
WFM
SLV
TGT
UHT

I am skeptical of the market in 2015, but I will continue to follow my long term investing plan.

Real Estate Update:

My real estate holdings have been a bit frustrating lately, simply because several of them sit unrented at the moment. Each of these houses I have purchased for at least 20% below their market value and need approximately $8,000 in repairs on average (I buy all of my deals cash, with no mortgage). When they are repaired, their values increase by about $20,000 each, and they each have positive cash flows of about $500 per month into my pocket. But, right now, three of them sit unrented, although they’ve only been fixed up and ready for about thirty days.

One deal did fall through, as the bank was not able to obtain title from the previous owner (how that happened, I’m not sure), so I am looking to put that cash into one more additional property.

House Equity: $341,000 (according to Zillow.com)

Monthly Rents: $950.00 (three houses currently being prepared for rental)

Approximate September 2014 Revenue: $512,000


What’s next?

Over the next quarter, my goals are very clear:

1) Take the men’s health company from $250k/month to $300k/month. We also aim to build and optimize its own sales channel.

2) Open up regular events near my home in Austin, TX for you to attend to take your business to the $100k level and beyond.

3) Taking the Freedom Fast Lane to #1 in Business. You can help by subscribing on iTunes.

Curious for more on how this revenue is generated? Start your ten day challenge to get on the Fast Lane to Freedom.

Did you find this (very honest) post helpful? Please LIKE it and SHARE it to spread the love! I’ll bake you a digital cookie.

  • Ryan

    Great post, love the income reports as it keeps me motivated in my own businesses. Look forward to the future podcasts you mentioned covering investing. One of my goals is to build up an investment portfolio in the next 5 years that generates at least 10k/month in passive income.

    • Beautiful, Ryan – you’ll definitely want to stay tuned. If that’s your goal, then I have some *very* cool stuff on the way for you.

      • Sahan Aad

        Thanks Ryan!

        Great post as always. I look forward to your post every month as a motivation and if I am falling behind or not lol. It keeps me focus and not let my natural slackness creep in.

        Keep up the good work and keep pushing me:)

  • Chris

    Keep up the income reports. Although you don’t show “proof” you don’t have a reason to lie about it like all the other scammy “Guru’s” and their fake income screenshots.

    • Thanks for that, Chris. I’m glad to be out of the world of gurus! 🙂

  • Bobby

    Why does anyone that produces 500k in income in one month need to sell anything here? I just don’t get it. How much money can one possibly spend in a single month?

    • Dizzy

      Yikes, I’m guessing it’s responses like that that are making the guy debate over posting these. Did you totally scan over his disclaimers? That’s income, from which employee wages and contractor fees, income to his partners, reinvestment in product, taxes, maintenance of investment properties and everything else need to come out. I mean I’m sure the guy doesn’t pay himself minimum wage and eat instant noodles every night, but equally it’s not as simple as assuming he has 70% of that total to blow on treating himself.

      Ryan – I’m interested in the ups and downs less than the $s, maybe you could change it to a percentage change report or something. Not as sexy and linkbaity but equally interesting. PS your “dying a slow death” link is broken, I would like to read that post if it’s still around.

      • Hey Dizzy! You hit the nail on the head! That’s the kind of stuff you deal with when your life is on the internet, I suppose. Add in people the fact that the demand for your time goes up, which requires you to sell more and protect your time and personal life more, and it sometimes feels easier to just not share this stuff publicly.

        But I digress… thank you for your feedback. I like that idea. Regarding the broken link, that article actually goes live tomorrow. Thanks for checking it out.

        • Bobby

          Well maybe I was just having a bad day.

          Ryan, may the odds be ever in your favor 🙂

  • Elizabeth

    I really liked this better than just the text version Ryan..I liked your input and additional thoughts you can share in audio. Congrats on the sale of ZenActive..and I would love to hear more about your new one on one coaching. I was not fortunate enough to join ASM through the Tribe but I would love to be apart of a group that continues to meet and share knowledge around what is working and what to avoid.

    • Thanks Elizabeth – I’m glad you liked the new format. I think we’re gonna stick with it!

      Just heard word that ASM will be opening one more time, so you’ll still have a shot sometime this year.

  • JR

    Ryan – Congratulations! Awesome month! Thanks for sharing this report. We (my wife and I) appreciate your transparency. For me, the reports are helpful because of the analysis and commentary – not necessarily the numbers (although the numbers do put emphasis on your commentary).

    If I were posting a financial report, I would probably not include detailed numbers. I would give commentary and analysis for cause and effect – make the report as didactic as possible. Any numbers would be percentage growth. Thanks again!

    • Great feedback. Thanks for this, JR. That’s certainly being considered, so I appreciate your input. I think a podcast that outlined the changes, with a textual summary may work really well.

  • Kelly

    Hi Ryan

    Love your income reports, just as they are! Clear & concise and simple:)
    Thank you for sharing with us

  • Landon Middleton

    Ryan, I enjoy the reports.. very clear and at least for me, inspirational.

    Don’t let others get in the way of serving the masses… Thanks for what you do, man!