At first glance it might look like March was a weaker month than February because my Spreadshirt payout went down compared to the previous month. However, that is actually not true. In this context, it is important to understand how Spreadshirt payouts work and how I track my sales numbers.
When I track my sales, I take the daily sales recap which Spreadshirt sends out after most work days. This give me live feedback regarding t-shirt which have been ordered, paid for and sent out to the customers. The delay is minimal. Of course, sometimes there are chargebacks or returns for which I then get deducted my commission, but those are not too serious. My commissions end up in my account, waiting to be paid out.
Spreadshirt’s standard policy of automatic payouts is that it will pay out any commissions above a certain threshold and only once a quarter. Why do they do this? Well for one it reduces unnecessary fixed banking fees for small amounts. That’s reasonable practice. The other reason is so-called “negative working capital”. You see, if they only pay out their partners once a quarter, then in the meantime they’ve been collecting loads of commissions. This generates valuable cashflow which streams into their accounts quicker/earlier than they need to pay us partners out and at least in theory, that is constant cash on which you can earn interest. Or in other words, it’s free financing.
Most of the bigger partners on Spreadshirt, including myself, don’t want to wait a full quarter for their payout. We’re running a business ourselves and we need the cashflow as well. Therefore every month, we can ask Spreadshirt for a manual payout of our commissions. The emphasis is on manual. You obviously need to remember to do it on time and then have to take into account that Spreadshirt only issues the payouts on a specific day of the week. So ultimately you’re going to end up with payouts which actually sometimes span a timeframe of less or more than 30 days. Therefore it’s sometimes difficult to compare one month to the next simply based on payouts. Plus, since the payouts usually happen mid-month, they’re a bit delayed and don’t necessarily reflect that exact month.
Based on my own sales tracking, March saw EU gross sales which were 19.3% higher than the previous month (18.5% on the US marketplace) and more importantly 12.5% higher the same period last year. That definitely sounds like a good trend, doesn’t it? Performance on a quarterly basis was also satisfying, showing that the work of the past year is finally paying off.
I expect April to be even more profitable than this one and it should easily outperform last years profits as well.
My First Redbubble Payout
Granted, it’s still nothing to write home about, but my Redbubble payout jumped from to almost 80€ this month, which is more than a 100% increase versus February. Not bad! I should also mention that due to the slight shift in focus in terms of my projects, I wasn’t even able to add any new designs. Therefore I don’t expect any massive groth in this area but if payouts remain stable, then that’s a good start.
Monthly T-Shirt Income Report
I’m looking forward to reading your questions and comments. If there’s any particular position that you would like to know more about, then let me know and I will try to clarify.
|Income Positions||EUR||USD||Last Month|
|Spreadshirt Marketplace EU||2,000.38||2,220.42||2,578.38|
|Spreadshirt Marketplace US||664.63||737.74||629.65|
|Miscellaneous Hosting Services to 3rd Parties||–||–||–|
|Expense Positions||EUR||USD||Last Month|
|OutBank DE (Banking Software)||7.55||8.38||–|
|Apple Keynote (Mac OSX Software)||–||–||18.64|
|Divi Theme (Elegant Themes)||62.16||69.00||–|
|Bootstrap Bay (Nifty Admin Template)||–||–||20.00|
|GitHub (Micro Personal Plan)||6.31||7.00||–|
|Laracasts (Monthly Subscription)||9.00||9.99||9.99|
|Google API Services (mostly translation)||–||–||–|
|HostGator (Web Hosting Services)||10.77||11.95||11.95|
|Shopify Basic Subscription (for www.gocaptain.com)||26.13||29.00||29.00|
|Namecheap (Domain Name Registration Fees)||–||–||–|
|The Noun Project (NounPro Subscription)||9.00||9.99||9.99|
|Dropscan (Mail Scanning Service)||9.02||10.01||24.69|
|Xing (Quarterly Subscription)||25.08||27.84||–|
|Tax Adviser (Quarterly Booking)||–||–||–|
|Net Operating Profit (excl. all taxes)||2,578.48||2,862.11||3,119.43|
|Tax Elements||EUR||USD||Last Month|
|VAT on Income||380.07||421.88||489.89|
|VAT on Expenses||7.92||8.79||8.23|
|Net VAT to be paid to the Tax Man||372.15||413.09||481.66|
*EUR/USD Exchange Rate for March 2016: 1.1100