I can’t believe it’s November already. It’s been over ten months since I quit my job, and before long, I will have been self-employed for a year.
And what a year it’s been. My first priority was of course to establish a decent freelance income, which came surprisingly early. I then had a bit of a lull in summer as I played far too much golf, before realizing that I really needed to pull my finger out rather than simply “getting by”.
That led to the creation of my freelance writing guide, which was launched just a few days ago. It represented the culmination of a simple aim — to establish a sizable alternative income stream before the year came to an end.
Although the guide was officially launched in November, the pre-launch period (in which I offered it at a heavily discounted price) ran from 30th October to 2nd November, which means that all things being well, I made a little bit of money from the guide in October.
What Happened in October?
As I explained in last week’s one hour authority site project update, working on the launch of my freelance writing guide completely dominated October.
My usual freelance work and this blog aside, I committed all available time to writing, editing, proofreading, designing and promoting the guide. I was completely out of my depth, but what a valuable learning experience! I know that I could do a much better job if I started work on a new guide tomorrow. Regardless of how well the guide does in the long term, I have learned a great deal.
However, I would be lying if I didn’t say that I hoped to sell a few copies of the guide. In fact, I set a target of selling 20 copies in the pre-launch phase. At $23 a pop, that would bring in a cool $460 and get me some of the way towards my ultimate $3,000 target.
So how did I get on?
Income & Expenditure — October 2012
- Freelance writing:
- Income: $3,913.62
- Expenditure: $30.27
- Profit: $3,883.34
- Websites:
- Income: $5.57
- Expenditure: $9.92
- Profit: -$4.35
- Leaving Work Behind:
- Income: $233.02
- Expenditure: $50.02
- Profit: $183
- Information Products:
- Income: $889.82
- Expenditure: $466.32
- Profit: $423.50
Total profit for October 2012: $4,485.50
First of all, yet another month comfortably above $4,000 is great to see. This is also my second highest earning month after August, when I did a lot more freelance work and also had a good month with Leaving Work Behind.
Speaking of which, October saw a dip in my affiliate earnings for Leaving Work Behind. I’ll be honest — I struggle a bit with affiliate marketing. I have no interest in “milking” you guys for affiliate income, so I only ever recommend products when I consider it “morally correct” to do so (i.e. when the product is relevant and I have used and love it). All I can do on this front is continue to experiment and learn.
However, the highlight is of course the income on my freelance writing guide. In the first two days of my pre-launch phase I sold a total of 41 copies of my guide — more than twice the amount I hoped for during the entire pre-launch. As you might expect, I was pretty happy with this outcome!
What’s in Store for November?
October saw a little dip in my freelance earnings as I was doing less one-off work. My income may recover slightly for November, but I’m not sure at this stage. I’m not particularly bothered either way, as my regular client work at a bare minimum keeps me in a comfortable position.
With the launch of my guide out of the way, my authority site project will become my main focus. November will be a month for content creation only, with link building to start sometime in December, as I revealed in my recent update.
But the most interesting event to look back on in November’s income report will of course be the launch of my freelance writing guide. Based upon how things have unfolded so far, I will have a lot to ponder and report on in November’s report! Until then, stay tuned for project-specific updates during the month.
Oh and on a personal front (and for your amusement), I have decided to grow a mustache for November as part of the Movember movement for raising funds and awareness for men’s health issues. To the right is a photo of me on day 6. If you want to see how it develops through the month, like my Facebook page!
Creative Commons image courtesy of pasukaru76
Financial Samurai says
Big bucks! Nice!
May I ask how you spend your income? Do you have a savings and retirement goal in mind? As a PF blogger, I’m always curious.
Cheers
Tom Ewer says
On bills 😉
No savings or retirement plan at this stage — at 27 years of age my focus is purely on reinvestment.
Financial Samurai says
As a personal finance blogger, I’ve got to advise you to save at least 10-20% of your after tax profits for retirement, financial freedom, or whatever you call it.
One of the biggest things as a freelancer is the LACK of government sponsored retirement plans or pensions. Stay steady saving over 10 years, and you will accumulate a nice nut. You don’t want to wake up at 37 with no retirement savings and also be tired of working.
Trust me on this Tom!
BTW, thoughts on the EMD Update hurting niche and authority sites?
Tom Ewer says
Hey Sam,
I think it’s interesting that you’d offer such advice with no knowledge of my personal situation. I am very comfortable not contributing towards my retirement financially at this point for a few reasons.
Personally, I see planning for financial freedom as my retirement plan. If I can build up long term assets that generate passive income over the next few decades, I will be set for retirement. In the long term I see myself earning a lot of property — all things being well, that will be my retirement plan. If things don’t pan out that way in the coming years I will have to reevaluate!
In a nutshell, if I am worried about retirement at the age of 37, something has gone horribly wrong in my plans. I’m not saying that it won’t happen, but I am comfortable with how things are going at this stage.
Not bothered about the EMD update — rankings will always ebb and flow; you just have to roll with the punches.
Cheers,
Tom
Financial Samurai says
Tom, I’m not sure how it’s interesting. Save, or don’t save, it’s up to you. A LOT of things happen during our lives that come out of the blue.
I’ve witnessed so many freelancers and bloggers end up with little to nothing after their endeavors because they failed to save. Can you imagine spending 5 years in your 20’s working on something online and getting sideswiped by Google or some other exogenous variable?
Everybody thinks they are invincible until something happens. My recommendation is to save for the inevitable change up that is thrown your way.
$55,000 a year in revenue is fine. But what’s left after expenses and taxes? Whereas 22 year old college graduates make $55,000 a year and have health insurance, retirement plans, etc. We freelancer have nothing.
Check out the post, “Quit Your Job And Die Alone” to get some more perspective.
Or not!
Cheers,
Sam
Tom Ewer says
Hey Sam,
I only meant interesting in a sense that you stated I should save in such an absolute sense, as if doing so the only viable/sensible option. Perhaps I misinterpreted your words.
For better or worse, I was brought up by an entrepreneurial father who demonstrated that investing is better than saving (when done correctly). Saving is not really in my blood — I would rather do something with the money.
Sure — there is risk involved in such an approach, but if you diversify appropriately you should be able to take your investments much further in the long run compared to simply sticking your money in government bonds or another low-yield savings plan.
I have absolutely no illusions of invincibility and am all too aware of how the cards can come crashing down (my father flirted with bankruptcy in my youth). Hence my constant work to diversify — I have been in fulltime business for less than a year but have already established two completely separate streams of income. The upcoming Kindle version of my book will establish another income stream, I am hoping that my authority site will follow suit, as will the next project that I already have lined up for early/mid-2013. With the disposable income I accumulate from those projects, I plan to invest in property, which will provide me with my first “offline” stream of income.
When it comes to savings vs. multiple and diverse streams of income, I will take option 2 every time. To be totally frank, I think the idea that you must save $x for your retirement as an absolute rule is as dated as the idea that you must get a good education, get a degree, and get a corporate job and climb the ladder.
Cheers,
Tom
P.S. I should qualify all the above by saying that I am all for having a substantial amount of liquid capital in reserve at all times. I will not be investing any of my money until I reach 6+ months worth of outgoings in savings.
Financial Samurai says
Tom,
Have a read of this article then: Achieving Financial Freedom One Income Slice At A Time http://www.financialsamurai.com/2012/04/16/achieve-financial-freedom-slice/
Thanks,
Sam
Michal says
Hi Tom and congratulations on your great results. You really inspire the others to reach new limits. Keep up the great work!
Tom Ewer says
Thanks Michal 🙂
Tracy Oeser says
Very impressive! You’re the first freelancer I’ve seen to actually post $ amounts. I always hear about them but other freelancers never quite say what they make. I just recently found your site and I’m learning a lot. Keep up the great work!
Tom Ewer says
Thanks Tracy!
Joe @ How I Got Rich says
Great earnings for October!
Glad your ebook did well in the pre-launch phase. I’m sure it will continue to do well this month!
As my affiliate earnings sink my freelance writing is starting to pick up slowly thanks to the info on this site.
Are you planning an affiliate programme for your ebook?
Cheers,
Joe
Tom Ewer says
There is one through e-junkie… I just need to get around to promoting it properly.
Carsten @ Small business Strategy says
Hi Tom,
You don’t look very happy with the growing mustache … 😉
Tom Ewer says
A picture tells a thousand words 😉
Lionel says
Congrats on your success. I think you have more potential to earn more.
Tom Ewer says
That’s certainly the plan 😉
Alex B. (@DreamJobGuy) says
Congrats on another great month, Tom!
Keep up the great work!
All the best,
-Alex
Tom Ewer says
Thanks Alex 🙂
Qrystal says
Hi Tom! Recently discovered your blog and am really enjoying your tips! I was curious what are your expenditures under ‘Information Products’? It seems pretty high at $466.32 and was wondering if that might be one-time costs for your ebook or ongoing cost? Thanks!
Tom Ewer says
Hi Qrystal,
Sure thing — it was mainly design cost (so one-off). I’m a crappy designer, so I paid someone to do it for me 🙂 The ongoing costs will be pretty low (as you’ll see in next month’s report) — limited to merchant fees and PayPal fees.
Cheers,
Tom
David Landen says
Tom,
Congratulations on a great October! It looks like your Freelance Writing Guide is off to good a start!
David
Tom Ewer says
Thanks David!
PrIyAnGsHu says
Quite inspiring stats Tom. You are doing really great. Keep going, and best of luck :).
Tom Ewer says
Thanks! 🙂
Kirsty Stuart says
Hi Tom,
Congratulations on a great month.
I’ve followed your blog for a while now and you’ve been an inspiration to me as somebody who has just quit her job and dived into the world of freelance writing. I’m also particularly interested in you as you are based in the UK like myself. In seems that every blog about freelance writing or blogging I come across is very US orientated (nothing wrong with that of course – the Internet isn’t referred to as the World Wide Web for nothing!). It’s just it’s a welcome change to see another Brit having real success at something I aspire to. It makes me wonder why you post your earning reports in dollars rather than pounds though? Just curious.
Keep up the good work and thanks for sharing it all with us in such an honest, transparent way.
PS I almost enjoyed the comment exchange with Financial Samurai as much as I did the post above it!
Tom Ewer says
Hey Kirsty,
Thanks for commenting!
I post my income reports in dollars because the vast majority of my visitors are American. Whilst it goes against my national pride 😉 it makes logical sense to do it.
Glad you liked the comments exchange — I think the topic is worthy of post so stay tuned!
Cheers,
Tom
Lewis Saka says
fantastic numbers, keep sharing and keep up the good work