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One tricky thing about affiliate marketing is that at times it can be deceptive on your pocketbook.
What I mean is that many affiliate marketers (newbies especially) often judge success on gross daily sales. For me this doesn't matter as much as it used to.
When I was first starting affiliate marketing, I'd almost judge the success of a particular day by the amount of gross sales! Now it may seem like a silly thing to do but quite a lot of people seem to do it.
Next, a lot of affiliates also do not remember to include other expenses in their mindset. Buying domains, servers, software, conferences, etc really add up after a while.
And lastly, Taxes. Remember to think about taxes. It's never fun to have to owe uncle sam a huge chunk of change every quarter, but taxes are one of those things you just can't (legally) avoid.
So, what I recommend doing to begin to realize your actual profit each month is to use a financial program. For me, quickbooks was a daunting and scary software. I had to have my CPA set it up.
For a while to help me track, I was using an excel spreadsheet and it works really well for those who are just starting out.
To download the Excel spreadsheet, click here.
It never ceases to amaze me how much profit I THINK I would have made and what I actually made after all the expenses are laid out.
Thanks for sharing, sounds like a handy tool
No problem.
Excel is best tool for that kind of work. I’m using it and i do not need more
Nice… While it is good, it costs more if you have your CPA do your taxes because they need it in a specific format.
I was so lost in Quickbooks as well.
Can you explain why you are not deducting Employee and Non-Fixed Expenses from your Net Profit?
The PHP coder I assume would be outsourced work?
I have Net Profit and then NET NET profit which includes employees and non-fixed expenses.
This is to help me determine how much is spent on advertising and how much on non-advertising costs.
Thanks,
Oh jeez, nevermind, I must be blind… or I was half asleep when I checked it out.
I have been doing the same thing, except for some reason I started writing all my costs and revenues in a old accounting book I used to use in an accounting course. (and still, Quickbooks confused the hell out of me.)
I was wondering how much a CPA runs for someone who makes more than an average US citizen, online. ? Guess I should just call a local one sometime soon.
Hehe.
My CPA firm costs roughly $150 bucks per hour but they don’t nickle and dime me which is really nice.
Thanks for the template. It’s a lot less confusing and much more straight to the point than the one my CPA gave me.
Glad to hear.
Thanks!
Ugh. It really makes the whole idea of making a few extra bucks off a blog seem really unattractive.
Hehehe – To make money online actually does take work. Sorry to burst the bubble!
I always use exel for that kind of work. You also should consider freelance writers there if you use them.
I think internet is look like a sea you can get lot of information’s and also earn lot of money but the basic thing which I want to discuss that is some expertise and try to find good way.
In regards to Excel and how to use it. There is a channel on Youtube called “excesFun”
http://www.youtube.com/user/ExcelIsFun
I am not this guy, but he does know his stuff. You will not fine the examples he gives in any book. Its free education at its best.
I make pretty good profit.I think.By the way awesome post!