Monthly Income Report – May 2013 – Made over $64 per hour, but……..

Posted on 02. Jun, 2013 by in Archived Post, Income Reports

“The results described here are my own and, therefore, are not typical. Individual results may vary based on a variety of factors.”

Hopefully, these income reports will help motivate and encourage you while you build your passive income streams. They show that you can recover from any pothole on the road to passive income success. Please note the monthly numbers have been adjusted to reflect ANY refunds and expenses thereby leaving only my net profit. I take half of my net and reinvest….the remaining is used to pay one or more monthly household bill(s)  such as our cell phones, insurance, internet, food, utilities, etc.

May Income: $186.88 (Amazon Sales)
May Cost/Expenses: $58.50 (simply put, for now, this my cost for products, packaging, shipping, business-related purchases and any refunds)
May Net Profit: $128.38

Below, you will find the standard “Seller Notification” emails that I receive from Amazon once a customer buys one of my items. I certainly enjoy receive those emails…..I still miss my Paypal notifications, though. Hope to get back into Ebay soon….

aprilmayreport

One thing I want to mention is that it takes me around 10 minutes to put each Amazon order together. From preparing the product to shipping via USPS. Your time should be considered when each income report is assembled. Why? Time truly is money when you are in the process of building a business. Including your time in your calculations gives you accurate picture of your cost per sell. For example, when I started selling SEO services on Fiverr, I generated a ton of business/sales, but it took me nearly an hour to complete each order and I was making $3.92 per order (that’s what you will receive after Fiverr and Paypal takes their cut). Only $3.92 an hour….that’s nearly half of minimum wage. For me (and many others), that sucks. My goal was/is to make $50 or more per hour. So Fiverr simply was not going to work for me….sure, I could have outsourced the work or purchased additional tools to increase the amount of orders I could do an hour, but I could not see Fiverr being an effective long term strategy for what I wanted to accomplish. It has worked for others, but not for me. To be an effective solution, I believe you have to keep the amount of time spent developing/finishing your product at a minimum, but that’s also based on the price of your product. A higher priced item gives you more flexibility when it comes to the amount of time you can spend on developing/packaging/shipping it, which ultimately impacts your true net profit.

So, in my case, I had twelve (12) orders for the month of May, therefore:

$128.38 (Total Net Profit)/12 orders = $10.70 per order
$128.38/120 minutes per order (2hrs.) = $64.19 per hour

$64.19 per hour sounds great, but preparing and packaging orders is not what I consider passive income, rather active income. Once I transition my product fulfillment process to Amazon, then it can be considered true passive income. I’ll let you know when that takes place.

Regarding next months report, I will incorporate my Lending Club payments and any sales receive from my Squidoo sites. I’ll cover my Lending Club and Squidoo strategy in future post…

15 Responses to “Monthly Income Report – May 2013 – Made over $64 per hour, but……..”

  1. VahnCross

    06. Jun, 2013

    Based on your Amazon sales, you’re doing a great job on making a profit by being an online merchant.

    But in regard to this, do you have any advice as to how we can avoid scams, getting low quality products or frauds in Amazon and Ebay?

    Reply to this comment
    • mpibadministrator

      mpibadministrator

      08. Jun, 2013

      Thanks….avoid scams involves research. How much positive feedback does the seller have? Of course, the higher the number the better. Does some comparison shopping as well.

      Reply to this comment
  2. VahnCross

    08. Jun, 2013

    It’s quite hard searching clarifications for scams online. Example is verifying sites on Google by search for ” scam” but they only show biased reviews based on their experience, not objectively. Some even put down legit sites just because they didn’t have a good experience with it.

    Reply to this comment
  3. James

    08. Jun, 2013

    You said you were having trouble making enough of a profit on Fiverr.com selling SEO services… Have you known anyone to make a higher profit on that site? Do you have any suggestions for services that would bring in a higher profit (so cost less time)? I’m on a few sites, but I was thinking about signing up for Fiverr.com as well.

    Reply to this comment
    • mpibadministrator

      mpibadministrator

      09. Jun, 2013

      James, the few that I know that are making money are those that are able to keep their development/work time per gig at a minimum. For example, if you are a good, fast writer (one that can write an article in 10 minutes or so), I think you could do well on Fiverr. Good article writing services are hard to find, so if you have those skills and can get the job done in under 10 minutes, you will do well.

      Reply to this comment
  4. Sky

    13. Jun, 2013

    I’d say $64/hr is a pretty good start! Sure, it may not be passive income but it seems to have that potential.

    I agree with you on Fiverr – unless you can whip out quality articles quickly, it is very hard to make a decent amount of money on Fiverr.

    Reply to this comment
    • Big Dave

      Big Dave

      14. Jun, 2013

      Yes, it was good to make that and it is a very good start….just need to be more consistent and have it tilt towards the passive side.

      Reply to this comment
      • John

        13. Aug, 2013

        What’s the start up cost of having Amazon do your order fulfillment, or is it a % of the sale? I’m trying to figure out how much outsourcing the fulfillment would eat into your profits.

        Reply to this comment
    • VahnCross

      19. Jun, 2013

      I agree. $64 per hour is a big amount to start out on. And with time, that $64 may become bigger and bigger. Great!

      Reply to this comment
  5. McKenna

    25. Jun, 2013

    $64 an hour…that’s a number most people only dream about!

    Reply to this comment
  6. andy

    12. Jul, 2013

    Dave, just trying to co relate here – in an hour how many orders are you able to fulfil ?

    Reply to this comment
    • Big Dave

      Big Dave

      13. Jul, 2013

      Hi Andy,

      I can fulfill around five to six CD orders in an hour….if they are flash drive orders (which I rarely get), then we’re looking at three to four an hour….

      Reply to this comment
      • Andy

        15. Jul, 2013

        So Dave, correct me if I am reading your business potential correctly.

        Optimally – you would like to service around 250 CD orders or there abouts in a month with a turn over of $2.5 K in a month.. Does that make sense?

        Reply to this comment
        • Big Dave

          Big Dave

          16. Jul, 2013

          Hey Andy,

          That’s about right…although, I would like for it to reach 500 orders per month with Amazon handling most of the fulfillment process.

          Reply to this comment
          • Andy

            16. Jul, 2013

            Recurring $ 5 K every month under the passive income header is a cool goal. ALL THE BEST

Leave a Reply

Copy Protected by Chetan's WP-Copyprotect.
Visit Us On TwitterVisit Us On FacebookVisit Us On Google PlusVisit Us On LinkedinCheck Our Feed