Single-System DJs ONLY...

Advertising, promotion and financial management for your Pro Mobile DJ Business.

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What percent of your GROSS revenue do you pay yourself as salary?

Less than 10%
3
30%
10-25%
1
10%
25-50%
1
10%
More than 50%
5
50%
 
Total votes : 10

Single-System DJs ONLY...

Postby djdonny » Fri Nov 24, 2006 1:44 am

This question is for Single-System DJs ONLY.

After paying your assistants, purchasing assets (music and equipment), operating expenses, and marketing, how much money do you have left to pay yourself? And do you??
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Postby CJ Greiner » Fri Nov 24, 2006 1:04 pm

Purchasing assets, operating expenses and marketing can cost quite a bit... but I'm still paying myself over 50%.

I guess I need to go back and see how my taxes would look if I wrote off my home office -- that might bring down my net income a bit...
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Postby Joseph Ivy » Fri Nov 24, 2006 4:08 pm

This is my first year in the business as a signle op. I had to buy all of my equipment and music as well as create and pay for all of my advertising. It has been aweful.

In the future I plan to pocket over 50% of my gross... depending on where the tax brackets fall.
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Postby TheBartman47 » Sat Nov 25, 2006 12:01 am

I like toys too much, so most of my money goes back into buying more equipment. Though, I do always make sure I take out enough to have a few family fun nights and pay for a week of vacation. So, I don't do a percentage wise, rather a set dollar amount. Such as, I'll spend $5,000 on vacation and family outings whether I make 10K or 30K. However, when I do make a larger amount, I also tend to buy "toys" for my car. Last year I bought a Gearvendors under/overdrive and changed the rear axle gears to 3.42 with an Eaton posi-trac. I plan on saving up now and maybe in 5 years I buy a 572 engine. I'll probably have to get a TH400 transmission to handle the extra power too.
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Postby djdonny » Sat Nov 25, 2006 12:27 am

Since I started the poll, let me say that I chose the 10-25% range, although this number has risen since I've stopped advertising.

CJ, It's great to hear that you are able to take more than half your total revenue to pay yourself. I'm hoping to get there. Right now, most of my revenue goes back into the business. Not sure where your home office fits into that equation.

Joseph and Bart, from your answers I would think you both chose the Under 10% range but only one of you did. I'm suspecting it was Joseph since he did say "In the future I plan to pocket over 50%." So do I, but I really wanted to know what you are already able to do currently.

As a first year DJ, it's not embarrassing to say that your revenue goes back into the business. For the first several years, my business actually borrowed from my personal account, so you can say for those years I was at a "negative" range. I didn't think of adding that option to the poll. But most startup businesses require owner investment before earning enough to begin paying the owner out of the profits on a regular basis.
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Postby Joseph Ivy » Sat Nov 25, 2006 1:43 am

I am in the negative, but I marked the 10% range.

I will actually have a negative cash flow for the year, but I expect that next year, my net will be positive. In the year after that, I expect to pocket at least 50% of my gross.
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Postby CJ Greiner » Sat Nov 25, 2006 2:21 am

You can do it!!!

For the first few years of my business, I was putting more into it than I got out of it -- every penny went into getting better equipment, advertising and other miscellaneous expenses.

I now fully own all of my equipment -- I spend quite a bit less per year on new equipment than when I started.
I also have learned what advertising works for me, and what doesn't. I spend hundreds on advertising per year instead of thousands.
Next month I'll be getting rid of my storage location and keep all of my gear at home.
Other expenses are a bit higher -- I now get CDs and DVDs every week/month, and I've put other expenses such as internet and cell phone under the business name.

But... I also charge quite a bit more than when I started. Every gig just adds to my profits.

You can do it!!!
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Re: Single-System DJs ONLY...

Postby SteveCie » Sat Nov 25, 2006 8:58 pm

Well, this has been a special year for me, in that I decided to go full time with the business as of July. With that in mind, I expended much in advertising, including new logo design, lettering of my vehicles, banners, literature, bridal shows and really some significant new promotional expenses. I also purchased about $3000 in new equipment. Most of these expenses could be capitalized and depreciated over several years, but I have decided to book them all this year. I am still pocketing slightly better than 35% of my total revenue. In retrospect, I think the year was somewhat depressed as compared to normal activity level. Nonetheless, I finish in the black. Speaking of in the black, I honestly began making profit for the year as of today! So Black Friday coincidentally was my turning point this year. My entire year's income (my pocket income) is being generated by December bookings (sales).
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Postby TheBartman47 » Sun Nov 26, 2006 1:53 am

djdonny wrote:Joseph and Bart, from your answers I would think you both chose the Under 10% range but only one of you did. I'm suspecting it was Joseph since he did say "In the future I plan to pocket over 50%." So do I, but I really wanted to know what you are already able to do currently.


I actualy only just now "voted", but I did choose the 10% and under category. Though, this year, by the time I add everything up, I may be in the 10%-25% range. I started in 1999, and am still growing, but I also do a lot more than DJing, as I also do concerts which requires a lot more equipment.

However, I did have an unexpected expense this year with having to repair my car after getting hit from behind. There were some repairs I wanted to get done that weren't related to the accident, but since I was already getting the main repairs done, I wanted to do it right and get the rest of the car done with a complete paint job. This car is my personal car as well as business use, so the money I spend on it is partially re-investment in my business, and at the same time partially "profit for me". I had to spend about $4,000 of my own money to complete the repairs above what the insruance paid.
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