Thank you for another amazing year with Jerrybanfield.com. Here’s my income report for 2018. I’m grateful now I can get back to regular monthly income reports as well after a year of income being very irregular with all the Steem money.
2018 Jerry Banfield Income Report $118,854 Profit on $236,704 Revenue and $117,850 Expenses
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Here’s my total income for the business: $236,704.
I’m very grateful.
That is a fantastic amount of income, almost a quarter of a million dollars in 2018.
Thank you for making this such a great year. After seven years in business, the first three years, I lost fifty thousand plus dollars, which means I paid fifty thousand plus dollars to do my business.
I borrowed a bunch of money and now I’m grateful I’ve paid all that I borrowed back.
Thank you for an amazing year.
I will show you how everything breaks down including the expenses and the profit.
Now, note I said income. That’s the revenue. That’s the raw amount of money in.
This number is kind of irrelevant in terms of what I get out of it. The number that’s relevant for me is the net income or the profit, and that is a $118,854 at least on this PDF.
I’m not sure whether they are in sync, but I am getting ready to do my taxes, so we will figure that out. That is the difference.
So, the total in was two hundred and thirty-six thousand. The total out, one hundred and eighteen after one hundred and seventeen thousand dollars of expenses.
I will break down and show you the biggest income and biggest expenses for the year and I do this to stay accountable to you also, to show you what my business looks like, to help give you courage to talk about and look at money openly.
I love money. I’m a badass in making money. I’m very grateful for the chance to make money and to give money also.
The largest single expense was advertising.
Seventy-five thousand dollars in advertising.
Now, a lot of the income I made was related to advertising. A lot of the money I got, something like thirty or forty thousand dollars of Steem that I cashed out went directly to advertising Steem via my Facebook and YouTube channels.
Therefore, that is the single largest part of the advertising expense.
Contract labor, that means I paid other people to help me. There were two big expenses on contract labor.
One, Michel Gerard.
He is my right-hand man online. He edits the transcripts into blog posts for me on my blog. He responds to emails. He puts out the email newsletter every week. Michel helps out a ton online. Michel earned ten thousand plus dollars in direct payments from me last year and we worked out a lot on Steem as well. I imagine Michel will be earning a lot more in 2019.
Also, contract labor, I paid to have a shed built in my new house in the backyard.
I’m grateful I was able to use the income from this year to put a $20,000 down payment on a house, buy a house for the first time in a couple of years again, and I spent about ten thousand dollars paying a contractor to build a shed in the backyard, which it had been six months later and the contractor had still not finished the shed.
I had to pay another contractor to finish it. Between the contractor and the materials, about seven or eight hundred more dollars to finish the shed.
We now have a beautiful home office studio in here.
That was the majority of the contract labor.
Equipment rent and lease was the third-largest expense category, $7,000.
Equipment rent and lease, the largest single expense in there. I’ve been renting my Mac Pro for several hundred dollars a month. It’s what I use to film all my videos and live stream on and going forward I intend not to rent any more equipment. I’ve paid three hundred plus dollars a month for a nine-thousand-dollar computer and I still don’t own it.
At the time it was easier to do for accounting, but now I see the best thing to do is just buy since you can expense up to twenty-five hundred dollars without having to do an asset.
Just buy individual pieces of a computer, build your computer. That way you can expense the whole thing. You don’t have to fool with it as an asset and I probably could have saved five or ten thousand dollars doing it that way.
However, I’ve been renting a Mac Pro and that will be done in just a few months.
Then also, any server rentals or anything like that, that includes renting. That includes apps and software.
For example, QuickBooks Self-Employed to do my business accounting. It includes any app and software expenses like that as well.
Legal and professional services, I honestly don’t even remember what I put in there, but that includes anything like consulting.
So, I literally don’t even remember that. I will go figure that out when I go through the books in more detail.
I’m having a hard time remembering the traveling last year. I took a few trips to go do blog posts and videos and things like that.
So, that was my big trip last year on the travel expenses and that’s able to be a business expense because my business is producing videos and when I go do something that is for video production to film a video and to go make a blog post out of it that then makes money, that is an expense related to generating the income.
$4,211 utilities, that being my Internet, which is several hundred dollars a month.
I have 300 megabits up and download on my Internet, which allows me to upload files and live stream at the same time. It’s really nice and it helps me just do everything super fast.
It’s one of those things I could cheap out on if I wanted to. I could save at least a hundred dollars a month to get a less expensive plan, but how much time do I save?
With all the files I upload and exchange among four different computers, it helps a ton to have fast internet. I’m even considering upgrading it for a few hundred more dollars a month.
That’s the basic breakdown of the expense.
What I will do now is show you in a little bit more detail here.
I realize the number is like 400 off.
I will figure that out in my accounting as well.
This will give you an idea of how it was month by month and I will show you the individual income elements and expenses related to those.
You will notice some months, I had huge profits often from Steem. Note that this does not count my capital gains. I also sold Steem that I bought at capital gains and I made about $50,000 or so doing that also.
This report does not count what I made from capital gains. I show that on my Steem income report, which I did on another video.
So, this is month by month and with the cryptocurrency and cashing out Steem, this was an irregular year. Because some months like this month, I spent twelve thousand more than I got in.
Well, that’s because I was spending a bunch of money advertising Steem in May and it is not because all of a sudden I had a horrible month. I spent a bunch of money advertising Steem in May before cryptos were banned on Google AdWords.
You can see on this graph the month-by-month profit. Twenty-five thousand, when the Steem price was up and the Steem dollar price was up I was selling my butt off.
After I put in so much, I’m selling, selling, selling.
And then I started selling a lot of Steem in July after I made public that I was pulling out of Steem, which I started doing on the way into June. I started selling my Steem a lot in July.
A lot of the income in July, August, September and October is selling Steem, and then with the Steem price tanking, with me telling everybody I was selling it and the whole crypto market going down, you can see how the year ended up there.
So this is a month by month profit report. I made a huge profit in January, a lot of it from selling Steem and the same thing in July.
Now, this has been a huge change for me going forward because Steem is at least at the moment not a relevant part of my income. I still do have like 8,000 Steem because of the way you power it up.
I keep powering it down. I’ve sold all the Steem I bought. I still keep powering it down. I got a voting bot. It still keeps making money and I’ve been continuing to sell that, but with the price low, I get about a hundred dollars a week now, which is still really good given I’ve sold everything I bought and everything I made prior to July 2018, that’s still pretty good.
I’m not intending to do anything else with Steem. I am just getting the rest of the money out as it comes out.
With that change, there has been a huge change in my business direction. I shifted to doing music in July, and then gaming in August and the rest of the year.
I’m also starting taking speaking engagements.
I’m imagining that the numbers for 2019 are going to look even better than this because there is a lot of opportunities that aren’t very clear to me at the moment, that in a year will have materialized fully.
Two years ago having a bunch of money made from a cryptocurrency seemed hard to imagine. As soon as I started imagining it, it began to happen.
Let’s show you the earnings in more details. What we will do is we will search transactions and it will show you the exact money.
So, what you can see is I’ve got one hundred and fifty-one thousand dollars in from Steem and that was a huge part of my income. However, at least fifty thousand dollars of the expenses were related to Steem also if not sixty or seventy-five thousand.
The challenge is, the Steem expenses were across the board in different areas, but Steem accounted for the majority of the income coming in last year.
So, out of the two hundred and thirty-four thousand or whatever the total amount, a hundred and fifty-one thousand of it was Steem.
However, a bunch of that Steem I brought in was brought in with the budget proposal project, which was then spent back out in advertising.
So, in order to get this money, I agreed to spend something like forty or fifty or something thousand dollars back out in order to get that much to come in.
This, you can see the different months just selling Steem how much I sold each month. The lowest month is $2,000 in December, and then the highest month, $28,000 in July.
It was funny, I was going through some financial feeling like I didn’t have enough money in March. I was feeling a bunch of financial insecurity in March until I realized I had three hundred thousand dollars of Steem sitting in my account.
I ought to sell some of it instead of hoarding and insisting that it go up and up.
So, I started.
Once I made that shift mentally, I started opening up to selling Steem. So, I started selling some more Steem going forward and you can see the big sale in July there.
Now, we will go over to some of the other big income.
Stackskills brought in $28,000. That is from teaching video courses on stackskills.com. My crypto courses were doing really well in the beginning of the year, and then when they had that big backlash against crypto and the market started going down, then the crypto course is not doing so well.
I haven’t been successful in getting the last few courses I made up on Stack Commerce either.
So, I’m working on my vendor relationship there. The vendor changed for the third time with Stack Commerce. The first girl that did the vendor was really good. The second guy was alright, and then this new girl, I’ve not got a course up working with her yet.
So we will work on that. This is stackskills.com via Stack Commerce.
A lot of the income comes in via PayPal. A lot of the income like Skillshare, for example, comes in via PayPal. I’m going to do separate videos just for that.
You can see all the PayPal income and expenses here. This is everything, like all the miscellaneous kind of PayPal income and expenses.
I spent $17,000 out through PayPal, and got $19,000 in.
So, that’s kind of the miscellaneous stuff.
Other big income, you can see Patreon. I’m very grateful for $15,000 in income from Patreon and a lot of that was people joining my partner program who are really excited about Steem, and then as Steem went down and I stopped doing Steem, a lot of partners canceled and I changed terms and conditions on the partner program.
So, I’m very grateful $15,000 in from Steem.
I also have a lot of payments directly from Stripe.
So, you can see $7,000 in payments directly in from Stripe from my business through my university courses or through anything else that puts in directly through Stripe.
That should give you a lot of the income.
Let’s go over.
We have got some income and expenses to do here.
Google income, $13,000 in income.
Those are Adsense deposits from Google. That’s income from my YouTube channel that Google deposits in. As you can see, the $48,000 in net spending and nearly all of that, almost all of that was advertising Steem.
I did hardly any ads for myself on Google last year that were outside of Steem.
So, I figured I might as well just advertise Steem. I can get money from Steem to advertise Steem, and then I will just be in the context of advertising Steem.
Looking back on it now, I would say this is one of the worst expenses I’ve made. A lot of those ads for Steem turned people off who otherwise were following me, but seeing a whole bunch of ads for Steem became tired of seeing me altogether.
I imagine there is an opportunity to reconnect without me constantly pitching Steem in ads anymore. The only thing I’m advertising on Google right now is my podcast at Jerrybanfield.com/podcast.
That’s the only thing I am currently advertising. I got a quick YouTube ad saying, “Hey, will you try listening to my podcast because I think you’ll love it.”
Let’s go over here to Facebook now.
Facebook has minus $6,931. That’s from Facebook ads at the beginning of the year, then another bill from March for Facebook ads, and then some more Facebook ads for my gaming page at the end of the year.
Facebook actually disabled the cryptocurrency ad account I was doing in March or April sometime, and then I made a new account just to do for my gaming and did some ads there.
So, seven thousand dollars of spending on my Facebook ads last year, which I’ve spent a lot less on Facebook ads this year than last year than I did on a lot of other years, and going forward I’m not planning to do much with Facebook ads.
I like advertising where a creator or a person directly gets it. With spending money on Facebook ads, it just goes to Facebook and I’m glad Facebook now is helping creators to get paid out, but at the same time I’ve advertised so much on Facebook, haven’t I advertised enough by now?
I hope so.
So, I’ve got web hosting with Kinsta. If you go to Kinsta, it’s managed WordPress web hosting at the speed of the cloud. It’s really good. I highly recommend that for web hosting.
If you would like to get Kinsta hosting, will you please go to Jerrybanfield.com/resources and use my link because they give me a nice commission for it?
I spent $1,191 on web hosting last year with Kinsta. My web hosting finally is a solution I can use indefinitely. Finally. This is really good web hosting. I’m extremely grateful for it.
Kinsta managed WordPress hosting on the Google cloud. It is so fast and so scalable.
I got GoDaddy.
I got a few domains from GoDaddy last year, only eighty-six dollars in GoDaddy.
One year, I spent five thousand dollars getting domains on GoDaddy. That was one of my many foolish things.
I made a hundred dollars in my first month on Anchor.fm instead of paying twenty-four dollars a month on Buzzsprout.
So, that was a huge little turnaround right there in my business.
All these things are listed at Jerrybanfield.com/resources for you. I’ve given you the highlights of the income report now. What I’m intending to do, is do some more detailed income reports for you where I will break down specific sources of income, talk about those sources of income in detail, so that you can get insights into maybe what you can do to earn on that particular source, or so you can really see it.
I used to do monthly income reports. I intend to begin with January 2019 to get back to monthly income reports because I love doing the income reports monthly.
Last year with the Steem money everything was so irregular that just doing a month-by-month report was ridiculous. Like to look at one month I had lost twelve thousand dollars and would have been the report, but in the context of the entire year on Steem that makes sense. But just in a particular month, it would have looked crazy.
So, I’m getting back to regular income reports for you in 2019.
Thank you very much for all you have done to make this possible.
One thing to communicate also, “Jerry, what have you given to people in return for this money?”
I’ve helped a lot of people in 2018 build businesses online. I’ve provided thousands of free tutorial videos showing people how to solve problems in their life. Anything from the death of a friend, to a music tutorial, to cryptocurrency tutorials.
I added a massive amount of value to the Steem blockchain, which I then extracted after seeing that there was a ton of other people extracting the value: “Better extract my value before it’s all gone.”
Maybe that mindset is why it’s all gone.
Anyway, I added a ton of value to the Steem blockchain last year. I showed millions of people the Steem blockchain. I brought in tens of thousands of new users to the Steem blockchain last year and that’s why I got all that money from Steem. It is bringing in so many new people to Steem.
I helped several people have businesses like Michel Gerard directly and I helped a bunch of people on Steem to build their own businesses online.
In 2019, I have more ambitious plans than ever. I’m imagining doing more, helping more people than I’ve ever helped before at a higher level than I’ve ever helped before and that is the key that I imagine will result in more income being produced.
I also made a lot of live gaming videos people enjoyed, people laughed, people cried, people shared, people donated, and I imagine that growing a ton in 2019 as well.
I imagine getting some opportunities, paid speaking opportunities, and maybe even some acting, training, workshop, consulting opportunities that will pay very well in 2019, that will allow me to go help in person. If you think I’m good on the screen, come see me in person and you can get the full experience.
Thank you very much for being here for this income report with me.
I love you.
You are awesome.
Thank you for giving me the chance to walk out in my backyard shed and work online, which pay all the bills or most of the bills for my family.
I’m very grateful for that today.
I appreciate what you have done to help and yeah, if I need a loan I will know who to ask, right?
My next video, “Can I borrow a hundred thousand dollars to grow my business this year?”
Edits from video transcript by Michel Gerard at www.michelgerardonline.com.