What are the expenses of a digital online course business? The real cost of running an online businessJan 21, 2021
So what does it cost to actually run an online business?
Well, like all business, it's different for everyone. But here's how I run my finances. 💰
By working with percentages it means that I don't overspend and as the business grows, so does my allowance for the other areas that I need to spend on.
I find profit in online business ridiculously great compared with traditional business, but there's of course still expenses.
As I've reached over the $1m now, software and equipment has dropped to under 1% but I've made up for it in course costs 🙂
Half of my revenue comes from membership which is more of an experience than a straight up course so I spend quite a lot of guest expert speakers, parties, retreat and gifts.
My marketing cost is pretty low because we do mostly organic content marketing so my 10% is mostly affiliate fees and promo materials.
I hope that helps to give you a guide. Everyone is different with what they choose to spend their money on, this is the breakdown that works for me.
I divide the revenue after all taxes and merchant fees are paid at the end of every 90 days for the following 90 days to ensure there's always a buffer in the account and I don't level up my income or hire additional team until the affordability is there.
Has this peek behind the curtain helps you with the finances in your business? 🤑
If you want to know how to enhance and supercharge the growth of the business behind your online courses, check out my Mastermind - Her Empire Builder.
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