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Sunday, December 03, 2023

Average monthly income is a combination of average monthly bonus income and gross profit from retail sales. Line 1 should be a projection of average monthly bonus income that achieves Q12 status by the 60th month.  
Line 1 – Calculate average monthly income by estimating your total bonus income for the year, including bonuses, and divide that number by 12.  
Line 2 – Gross profit from retail sales is equal to sales price of the product minus your cost of the product.
Estimate your gross profit from retail sales for the year and divide that number by 12.
Line 3 – Add lines 1 & 2 together to get your combined average monthly bonus income and average monthly gross profit from retail sales together.
Line 4 – Automobile expenses – The majority of IBOs use IRS’s standard mileage rate allowance for deducting business-related auto expenses.  
Therefore, I would recommend using an average rate of 54.5 cents per mile for budgeting purposes. Multiply your estimated annual business miles by $0.545 & divide that number by 12 for line 4.
Lines 5 & 6 – Estimate the percentage of business use for cell phone and internet year and divide by 12. I recommend not deducting more than 50% to 60% of your cell phone and internet expenses.
Line 7 – The training and continuing education category includes the cost of educational materials and the cost of conferences and functions used to help you learn how to properly build your business.
Any of these training and educational materials that are passed on to prospects or downline should be transferred to the “advertising category.”
Line 8 – Travel includes hotel, rental cars, airfare, cab fares, etc.
Line 9 – Advertising and Promotion includes the cost of sponsoring and other materials used to build your business. This category also includes samples.
Line 10 – Supplies – project this expense by estimating your costs for office supplies, postage, shipping and other miscellaneous items.
Line 11 – Complete line 11 by adding lines 4 through 10 and enter the total here.
Line 12 – Complete line 12 by subtracting line 11 from line 3.