3 ms·

$70k is revenue, not profit.

• jacalata 13y ago
  yea. At 40% margin (from elsewhere in the thread), that's $28,000 profit, for an annual profit so far of just over $50,000. If we assume that all the salaries except his own are coming out of that gross before profits so that $50,000 is for him alone, then it's a decent income for a college kid - although I'm not sure if that's a fair assumption, and given he says he has no idea how to bookkeep, I don't know if, say, all the student fees were paid upfront for the courses next month, but he hasn't taken out the instructor fees for next month because they haven't been paid yet. So it's very hard to judge whether he's actually got a solidly profitable business going - but to be fair, he does say "It’s not much, but it’s a start" so it's not like he's yelling "I HIT IT RICH GUYS".