This is the third open financial report of my business as an independent creator and consultant. A bit later than usual, the Corona lockdown has taken a toll on the amount of time I can spend in front of a computer.
Let’s start with the summary first and do a break-down further down this post. If all you care about is “how much money is Mattias making", you can probably stop looking after the first table.
|Total revenue||Total costs||Net profit||Delta|
These numbers don’t mean much in and of themselves, so let’s dive in.
Overall, most money was spent on:
- Social security, healthcare & pension plan
- Digital Ocean server equipment
- Internet, cell phone subscription, electricity & gas for my home office
This was a quiet period with little to no special costs: €1,631.00.
Oh Dear! is the monitoring SaaS that Freek & I are building. We employ a 30/35/35 rule for our revenue: 30% of our revenue gets re-invested in the company (advertising, art designs, external freelancers, …), 35% goes to Freek, 35% goes to me.
|Total revenue (VAT excluded)||€7,392.82||+33,5%|
|30% to marketing/investment||€2,217.60||+46,8%|
|35% to Freek/Me||€2,587.20||+46,7%|
We had an exceptionally good month for Oh Dear, but the main reason were a few big yearly subscriptions that got purchased (worth more than €2,000.00). These don’t renew next month, so while I’m happy with the spike in revenue in March, I’m anticipating a (relative) drop in April because of this.
Note: costs are averaged and rounded to the upside, to keep budget available for sudden spikes in activity (aka: more server capacity needed).
DNS Spy is a much simpler product than Oh Dear. It has less features and only focusses on DNS, a much more narrow use case. As a result, its proceeds are also lower.
DNS Spy is owned and operated by me, so all profits flow to me directly.
|Total revenue (VAT excluded)||€896.20||-41%|
In february, I was able to realise a +36% growth for DNS Spy. A Hacker News post had brought in several new clients.
There were a lot less new clients in March, and the dramatic drop by -41% is the direct result of it.
(For DNS Spy, it’s common to see users take on yearly subscriptions instead of a low monthly renewal.)
I didn’t take any consultancy assignments in March.
The sponsorship schedule for the weekly newsletter is coming along nicely.
|Total revenue (VAT excluded)||€2200.00||+700%|
For the next few months, this revenue will continue to be stable. Sponsorship slots are booked (and payed for) until mid-May.
To summarize, here’s the revenue and costs per income stream.
|Business costs||-€1,631.00||- €1,631.00|
Gross revenue of €5,683.4, which adds €3,760.40 net profit to the bank.
Things are looking good, so it’s time to take my salary out of minimum wage territory.
From now on, I’m paying myself a net salary of €1,825.00.
This marks a pretty big turning point for me, because it now means I no longer have to touch our savings account any more! 🥳
Extra note: because I now own a business, I get to (partially) pay things like my home office internet, electricity, heating, … with pre-tax revenue. This allows me to receive a lower-than-before salary while keeping the same standard of living.
Hours worked vs Money made
I received an interesting question on Twitter as feedback of earlier reports: how much time did I spend working to get that revenue?
This leads me to an interesting statistic I want to keep track of: what am I worth per hour?
Corona was already impacting available working time in March. It comes down to:
- Hours worked per week: 15h (~60h in the month)
- Gross revenue: €5,683.4
- Hourly revenue: €94.72
By working less, I’m actually pushing my hourly revenue up.