I’ve been in the business for 28 months. The first three months were a grace priod where I did not have to by any products other than my original startup kit. After that, I spent approximately $250 – three hundred dollars every quarter on products, which I either used or sold. My expenses also includes some training (4 conventions and nutritional training, $395 each, over the time period as well as a number of smaller trainings ranging from $15 to $50 each). The training figure below also include cost of travel, hotel and meals.
Assets & Expenses:
Product purchased 2,400*
Support materials 1,500
Total Assets & Expesses 6,800
Earnings & Compensation
Compensation plan payout $2400**
Retail Earnings 2100***
Return on taxes (2014) 3800
Return on taxes (2015) 3100
Gross Earnings 11,400
Less Expenses 6,800
Net Earnings 4,600
* the retail value of the products purchased is $4320.
**This year (2016) I’m on track to earn $3600 for the year (that’s $300 dollars per month).
*** approximately 50% ($1200) of this income came from retail sale of products purchased and listed above under Assets. I sold roughly about 1/3 of what I purchased and retained the rest for my own use or later resale.
The figures do not include purchases resulting from me transfering my buying from brick and mortar stores to my own online store. For instance I get a much better deal on groceries from business partners on my online store (which we call a mall), than going directly to the same major, brand name grocery store in my neighborhood. And I get a three hundred dollar check when I rack up enough brownie points–which I would not have gotten from my local store. I also exclued the purchase of a new Gateway laptop computer, the purchase of flowers and gifts for birthdays and holidays and many other items I would have bought anyway, but which I purchased through my online store. In short, the figures include only the products I purchase with the intention of reselling them, which was done primarily as part of the business requirement for maintaining a distributorship relationship with the company. And by the way, all the products so purchased, is a business expense says it’s tax deductible–which is true even if I end up using the product.