HoJo's 2020 Income Report by %

For years I have looked at bloggers outside of our niche and LOVED reading their -often- monthly income reports. I don't view it as a competition, but rather as looking up to inspirational people. To think people go from literally nothing to hundreds to thousands to sometimes even much more income per month is completely fascinating to me.

I've always wished Teachers Pay Teachers sellers would share their income reports. Yet I also understand why they don't.

Just like other TpTers, I've never found a good way to share my own income. After all, as TpT sellers, we are earning our money typically from hard-working -and generally underpaid- teachers. It just simply didn't feel write to share income reports. Until now!

I think I've found a way to share my income without truly sharing my income. I hope the images and information below is helpful to other TpT sellers. It gives you a chance to see how you and I compare - from a percentage standpoint.

Please note that there are affiliate links in this blog post. The Academic VA is a DBA of HoJo's Teaching Adventures, LLC. You can read our entire disclosure statement here

Before I get started, did you know I send out a weekly newsletter specifically for teacherpreneurs? It's true! You'll get at least one free download a week, tips and ideas to help you implement new trends or important things right away, as well as random thoughts from someone who has been on TpT since 2009 - ME! Sign up here!

2020 Income

Let's get started with my 2020 income. As you can see, a vast majority of it came from TpT. I'm working to change this, but we all know diversifying your income streams in NOT something that happens overnight.

HoJo 2020 Income by Percentages

2020 Expenses

Below are my expenses. You can see that my own personal payroll took up 30%, and then the money the business puts into my SEP IRA for investments took another 7%. 

The TpT commission took up 18% of my overall expenses. For those of you who don't yet make $20K/year on TpT to get a 1099 from them, they show your total sales on that form. Then you need to deduct the commission as an expense. That is what is reflected below. (I've always found it odd that this money never even crosses my "desk", yet I still claim it. But that's how it works.) 

Outside services - like virtual assistants - cost me quite a bit each year. This number is a bit high in my opinion, yet also justifiable to me. My primary goal when I left my admin job in the spring of 2015 was to be a mom. Yes, I also wanted to work on this business, but I hire out a lot to be able to fully enjoy time with my kids. 

And - if I'm being perfectly honest - I struggle with some of the more monotonous tasks when my kids are around. I will forget what puzzle piece I was cropping and end up doing the same thing 2-3 times - so I figure it's a better use of my time and money to hire others. Plus this upfront investment should pay for itself multiple times over as the resources they help me make sell for many years. Hopefully I need less outside help as my store grows, but I guess I don't know exactly what the future will hold... 

(I added about 50 new resources in 2020, but we worked a LOT on making items digital - which requires a LOT of puzzle piece cropping for my store...)

I'm actually surprised that my advertising expense was 9%. I've always aimed for about 5% and planned to up that to 10% in 2021, but maybe I was already closer than I thought...

None of the other areas were super surprising to me, BUT keep in mind that your percentages could look quite a bit different than mine. Every business is going to look different. Heck - my own business will probably look different next year!

HoJo 2020 Expenses by Percentages

Profit First

Now please do NOT think that I'm saying my numbers are the "right" numbers because I am NOT. Honestly, I don't know that there are truly any "right" percentages for a business. But I know ever since I read the book Profit First that I have tried to align with the numbers Mike shares. 

You can get an overview of the book here. Or go here and look at Figure 4 to see where I ultimately hope my numbers align. 

This chart below shows how I compared to Mike's graph. The whole tax situation is something I'm still trying to get right with our new accountant. I have a feeling that number will align more in the coming year. (I fired my last accountant mid-2020, and the new guy and I are still working out a few things.) 

But as I stated above, I knew my expenses are a bit high - therefore meaning my own compensation is a bit low. With that being said, the S Corp did give me a raise in November 2020. (I jokingly tell people that my boss realized I was worth more. HA!) So I anticipate the numbers getting closer to Mike's in the coming years, but I also don't think I'm doing all bad! 

(And yes, I realize my numbers only equal 99%. #DangRounding) 

HoJo compared to Profit First percentages

I would LOVE if you shared your Profit First percentages in the comments below! Or let me know what other thoughts you have about the information above! Was this helpful? Do you think it was in bad taste? Please be honest! I can handle it. :) 

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