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- [00:00]
A
We all come with our zones of genius and then we also come with the areas that are I call our zones of incompetence. And we have to know, like, this is my genius, this is what I can help people with, but this is also the thing that I need help from other people's zones of genius because I need to make sure that this is good and clean and clear in my business. Welcome to the Influencer Podcast. I'm your host, Julie Solomon. If you found yourself here, it means you are ready to unleash the powerful visionary that lives inside you, turning you into an authentic leader who creates influence, impact and change. Let's get started. Hello friends, and welcome to another episode of the Influencer Podcast. Today I have the co founder of Cookie Finance with us, Nate. And Nate is going to be diving into a lot of stuff that I have touched on in the past in this podcast but have not been able to touch on recently. And I think that it is so, so important. And it is all things financial literacy and just the financial understanding of what it actually takes and what you actually need from a financial support standpoint to build an online coaching, online education, online creator business. Whether you are at the stage where maybe you already have some financial support or maybe you're someone that still kind of does this yourself, you're going to learn a lot and hear a lot about what it actually takes in 20, 25 and beyond to make sure that you are supported and that you are really getting the best that you can get when it comes to your tax return savings, when it comes to bookkeeping, when it comes to really just setting yourself up for that financial support that you need. So this is going to be a very helpful conversation and hopefully a very insightful one. I know that I took some things away that Even my almost 10 years in the online space, he dropped some gyms today that I was like, whoa, I don't know that. Like, I don't know if that's happening in my own finances right now and I need to go take a look. So with that, let's get started. Hi Nate, it's so great to have you with us today.
- [02:07]
B
Yeah, I appreciate you having me on. Thanks.
- [02:09]
A
Yeah, this is going to be a really fun, and not just fun, but I think very useful and integrated conversation for our community. So I want to kind of start at the beginning. We what were you seeing in the creator economy space that made you pause and say, wait, why hasn't someone built this already?
- [02:32]
B
Yeah, I mean it all started. I have two sister in laws who are content creators. And I was on vacation with one of them and she was just lamenting about how terrible her accountant was. Like kind of her local mom and pop accountant tell me all the things that she was doing. I was like, oh my gosh, like that sounds terrible. That is absolutely horrendous. And she was actually the one who approached me. I've been a CPA for 14, 15 years. She said, Nate, this is a huge problem in the creator space. You should definitely look into it. And in my mind I thought, oh, I'm sure it's just a one off bad situation. There's just one bad accountant out there, like one bad apple. I'm sure it's fine, but let me just see, like put some feelers out there. So I kind of put my, put some Google Ads out there just to see, hey, is anyone interested in this? Is this of worth to anyone? And very, very quickly people started just reaching out to me and telling me all their horror stories they've had with their accountants who just don't understand creators, don't understand their deductions, don't understand the industry, the lingo, how it all works. And very quickly it was like, okay, I'm, I'm all in on this. So three weeks after launching that first kind of landing page, I quit my full time job and I went all in on Cookie just cause I saw such a huge problem that we need to solve for creators.
- [03:54]
A
Oh, wow. And I mean it's. That is not surprising at all. I mean, I think that we all have our horror stories. I know I do. Of when you first kind of get into the online space and whether you are creating digital products, you have affiliate income that you're working with, you've got commissions, you've got brand partnerships, you, you've got your own online education programs, whatever it may be that you're selling. You really need someone that has your back and has your business's back, who understands the market. Because when you're coming at it from more of a traditional landscape, there is so much that can be missed. There is so much that can be lost. There's so much that quite frankly, Nate and I know that you've seen, it can just detrimentally mess up your accounting and your filing if not. And so I'm excited to dive into, into this. I know that you've worked in big finance like you said, you now serve solely creators. Two worlds that I don't think may always understand each other as we've just laid the groundwork on. So what was the biggest mindset shift for maybe you personally as coming from that traditional CPA background to make the leap to be the service provider that you know you needed to be for this industry that is ever changing, ever evolving and so non traditional.
- [05:11]
B
Yeah, well, I actually was a kind of a creator, I'd say beforehand. My wife and I, we started an online course business. It was all about Microsoft Excel. We had a whole subscription platform and we built that up and we sold it, you know, back in 2021. So I was very used to working with individuals and small businesses. It's always been in my blood to really work with people like that. And I was actually very unsatisfied in my career working in big finance, big accounting. You know, you're just like this one little cog in this giant wheel. And I would constantly come home and I'm like, my whole job is to make rich people richer. I'm like, this is like the most unfulfilling thing ever. And as soon as I got that very first client and it was so personal and so one on one and then immediately seeing that huge impact you're having on that one person's life of oh my goodness, my, my finances are a mess, I don't understand any of this. And then be able to take that and really help them shift their mindset and teach them and educate them and bring that clarity, bring that peace of mind. It was such a huge difference of feeling fulfilled from what I love. I mean I'm. I originally went to school to be a teacher and that was like always my dream was like to teach and mentor people. So it was a fun shift to go from big finance, working with major banks and investors and everything like that, which it's not super fulfilling. And then going to like immediately having a direct impact on people. It's just been so amazing. I love what we do. It's so cool.
- [06:56]
A
Well, and I know there's so many different parts to it that I want to dive in more on in our conversation, from budgeting to forecasting to bookkeeping and the nuances that come with that to payroll, to actually getting prepared to file. And our listeners are, they're high achieving entrepreneurs, many of them, they've been around the block, they've got the polished brands, they're working on growing and scaling the business and the revenue. But behind the scenes, and I know this just from the women that I work with, taxes and finances, it's overwhelming, it's unclear. You know, sometimes they kind of just want to like throw it off to somebody Which I'm always like, yes, don't ever do your own taxes. If you want them done right, you need a professional to do them. And I said, but I do think that for your own financial literacy, for your own financial independence, it's important for you to at least have a conceptual understanding of what is at play here. And so what do you want to the creators that, that you. That you know, or that maybe even listening to this podcast, to really know about the system that maybe was never built from them but, you know, is actually possible for them now?
- [08:07]
B
Yeah, and that's the. For me, the most important thing is you never want to work with, whether it's in finance or operations or whatever it is, you never want to work with someone where, like, you relinquish full control. And you just say, hey, this is too confusing. I don't understand it. Like, you take care of this and, you know, I'll just trust you. Right? And so that's always been. I go back to, you know, my, my love of teaching and everything. And that's really built into how we work with our creators who say, absolutely, we're going to take this off your plate. Because for, for entrepreneurs, your highest and best use is not going through in QuickBooks and like categorizing all your transactions, your highest and best use is not to go through and reconcile your bank account or, you know, do your quarterly taxes, end of your taxes, worry about payroll. Like, that's not your highest and best use. It's important, but you should spend your time doing other things. But at the same time, exactly like you said, you should still understand. And so we really take a lot of time working with our creators to really help them understand. Like, okay, here's why you need an llc. We're not just going to form it and say, be quiet. Just like, trust us on it. Like, here's why. Here's why you need to be an S Corp, and here's all the benefits, and here's what you need to do. And a lot of times we love it when creators, like, the fourth, fifth, sixth time, like, okay, I still can't wrap my head around S Corp. Can you explain it one more time? We're like, absolutely. Like, let's make sure you feel comfortable with this. Because we want them to feel empowered, right? That when we give them a recommendation that they can push back maybe and say, hey, I have some thoughts on this, or, hey, I also was thinking about X, Y or Z. You know, do you think that could apply to me? And then you're just empowered to actually, like, make better decisions down the road. And as you grow your business, your brand, you speak the language of all these different pieces. So maybe you do have a coach, and maybe you do have a talent agency you work with, an accountant you work with and a financial advisor, and you have these people who are helping you, but you understand how it all works. I. I think that just makes you such a more powerful entrepreneur than just kind of relinquishing control.
- [10:25]
A
Absolutely. And. And that's kind of one thing that I hear a lot. You may hear it too. Nate is like, I feel behind. I feel like I should have had this figured out already. You know, I hear a lot of times from the women that I coach and work with, they're like, you know, this thing that maybe started out as a hobby or started out as this thing that I was inspired to do, but I didn't quite fully believe yet that it could happen, and now it's just kind of taken off and it's become this thing in and of itself. And now I feel like I'm so farther back than I should be of, like, getting my financial life in order. And so I would love for you to speak on that. Maybe that's the patterns that you see with even very successful creators and online educators when it comes to money and tax management. And more specifically, break down how cookie finance kind of fills those gaps, the things that you offer. Because as I mentioned before, there's so many pieces of the puzzle that we need to make sure is clear. And obviously, this is based on unique business goals and personal goals as well. But, you know, you've got. You've got just the brass tacks of it. You've got the bookkeeping. You've got, you know, making sure that you're filing appropriately. You know, are you an LLC or are you an S corp? What state do you live in? I mean, all of these things kind of factor into that, but share with us kind of how you support those that maybe feel behind. What. What does that process or frame like? And then how do the services that you provide fill those gaps?
- [11:51]
B
Yeah, I would say if you feel behind, welcome to 99.5% of all entrepreneurs. So we. We've worked with creators of all sizes, from, you know, micro to those making 100, 150, 500,000. A million, three, five million dollars a year. And I would say the common theme between all of those creators is none of them have their stuff together. So if you're feeling behind, just know that everyone else around you is Also behind. And that is extremely normal. And I'm not saying great now, like, don't do anything about it. I'll talk about how we can kind of help with that, but more like don't feel shame around it. Because the consistent theme we have when we talk with new creators, you know, they're like, I'm making $500,000 a year and I don't have my LLC. I don't have this. I don't have this. I'm like, that's totally fine. You're crazy. You're making $500,000 a year. Like, that is incredible. Like, let's just, like, appreciate that. And you don't have these things set up. That's okay. Neither do almost. No one who comes to us has these things set up. So if you're feeling behind, you're not. You're actually, like, right in line with everyone else. And it's so entrepreneurial to, like, run ahead. Your content takes off, your brand takes off, your business takes off, your generated revenue. And then it's like catching up to make sure you know all the foundations right? So what we always do with our clients when they come in is the very, very first thing is we say we need to get your LLC set up. So we make sure the state that they're in, we make sure they understand why the LLC, if they're above a certain income threshold, usually about $125,000 a year, we'll say, okay, now we're going to set up the S Corp and let's make sure payroll is set up. And now we are going to open up a QuickBooks account for you, and we're going to connect your bank account and we're organize your transactions. Then we go through and we tell them all about deductions. Here is what a deduction is and here's, you know, here's how it applies to you. Now let's hear from you, like, what do you think would be deductible for your business? Because a video game YouTube creator is different than a lifestyle creator, is different than a travel creator. So, like, let's apply it to you. And how do you feel that supplies so they really understand, like, oh, that's how I should think about deductions and everything else. We have them open up a separate bank account. Almost no one has a separate bank account. So if you don't, once again, don't feel shame, but go open up a separate bank account today, please. Like, this is like the biggest step. We have them open up a separate bank account and then really separate the bank, business and personal transactions. We get all of that set up, like in a very, very quick amount of time, like a one month period. We're just like, you know, sprinting to get all these things set up, but then they're in really, really good shape of like, okay, now we can be more proactive. We got all the reactive things taken care of. Now let's think more about like, tax planning, tax strategy. Great. You have kids. Well, should we put them on payroll? Great. You are making 200, 250,000 a year. You have money left over. Cool. Let's think about SEP IRAs and solo 401ks. And how could that help your tax situation? So then we can start thinking more proactively and strategically rather than reactive. Like, oh my gosh, I just filed my tax return, you know, three months late. I owed a hundred thousand dollars. I'm way behind. We can be a lot more thoughtful about that. So I would say don't feel shame if you don't have any of those things set up, but now's the time to do it and it's less painful than you think, especially if you work with someone to kind of help you along the way. But definitely, you're never too far behind. We've. Then I'll be quiet on this. A lot of things we hear people, they're like, oh, I was so nervous to reach out because I was worried that I was going to get judged. Because we've heard of creators going to accountants and like, whoa, whoa, whoa. You don't have your, like, all of your income and expenses are going through your personal account. We can't touch that. You don't have your LLC set up? Like, nope. Like, go get your house in order first and then we can help you. So then there's like this shame and stigma and we're like, no, no, no. We're entrepreneurs. We're all entrepreneurs here. Like, let's figure this out together. So no shame. You're right in the same boat as everyone else, is what I would say.
- [16:15]
A
Well, and I love that you just kind of touched on, you know. Yeah, you got to get, depending on where you're coming in, some, you know, some people may be coming in, having some of that stuff set up, some may not be. So we do have to get the house in order. And you're, you're willing to get the house in order, which is great. But you kind of touched on some things too around that shame piece. And I would love to, to root into that because I believe that there is a lot of myths or misunderstandings that can happen that I think stem from a deeper fear of being judged or shame or guilt around. Well, what if I come to Nate and I'm carrying a lot of debt, you know, but I. But I have two kids and. And like, I want to save, but I don't really have a ton to save every month. But like, there's probably something here that his genius could probably figure out. Or, you know, maybe I'm wanting to. To start to put money away in other things or, you know, I'm someone that's just had $400,000 just sitting in a checking account and, you know, but my expenses are not $400,000 a month, and I've got plenty of months in reserve. So, like, you know, just all of these kind of things that come. What I hear a lot is, is that women in particular, they wait for this. This like made up, mythological external to change before they kind of take that next step. Well, I'm not ready to save yet. I'm not ready to start a 401k yet. I'm not, you know, I'm not ready to put my children on payroll yet. Like, I'm not ready because of X, Y and Z. So I would love for you, I would love just to get your take on that, you know, that we're all coming from different things, but whether it's. You have a family, you have a big team, a small but mighty team, you're your only employee. Maybe you're. You're coming in with, you know, $30,000 of business debt, like, whatever that is. What are the common myths or misunderstandings that you love to clear up with your clients once and for all to help them and really meet them where they are with what they're coming in with.
- [18:09]
B
Yeah. And that's like the big thing for all of our people is like, we drill that into our employees heads. We're like, we meet our clients where they are. There is no, like, we celebrate them for. For where they're at. Right. Like, the fact that you're going to a professional help, like, that is a huge step. Right. It's like the first time you go to therapy. Right. It took me so long to actually, like, work up the courage to go to therapy. And I was like. And actually went. I was like, oh, this is actually really amazing. Like, this is. Should have done this years ago. I think it's the same thing of like, that shame of like, ooh, like someone else is going to see my finances they're going to see. You know, we were just cleaning up this one person's books, and she sent me a message, and she's like, oh, my gosh, Nate. Like, please don't judge me for how often I eat out. She has three kids. Her and her husband are both content creators. They have three kids. She's like, please don't judge me for, like, how much I eat out. I'm like, I'll call her Sarah. I'm like, sarah, do you know, often I eat out. I have four kids. Like, my wife and I are doing this business together. Like, we eat out so much. Like, there's no judgment here. Like, you're making a ton of money, right?
- [19:19]
A
You can eat out.
- [19:21]
B
Yeah, like, you can eat out. It's totally fine. So, yeah, there's no shame about where you are, because I think unfortunately with social media is. We see people and we see, oh, my goodness, you know, this person, Sarah, Julie, they have, you know, they have all their life together and everything is perfect, and they, they have all these things set up and. But that's not me. So, like, I, I not worthy or I'm not. I, I, I'm not. I can't do that. And then people come on and we're like, once again, you are in the same situation as everyone else. Like, no one has their stuff together, right? I mean, I'll, like, peel back to the curtain to cookie finance, right? Like, we've been around for two and a half years, and there's still a lot of things where I'm like, man, like, we need to get some things in order still, right? Like, we are all entrepreneurs, and that's part of being an entrepreneur. But there's definitely a lot of, I'd say, fear and shame, especially around you. You kind of hit on, like, that 400 case in your account of, like, then being okay spending that money almost. Some people are ashamed of how little money they have. And then some people, it's almost like they need permission to spend that money. And I have two quick examples. I have this one creator. She makes about anywhere between 350 to 500k a year. She's 27. She's been making that much for the last four or five years. She paid for a house in cash. She has a rental property, and she had, like $300,000 sitting her checking account, just going there, and I'll call her Jane. She was like, nate, I, I really would like to buy a Supra. I'm like, cool. She's like, do I have enough money to do that. I'm like, hey, this is your decision. I'm like, but what's the point? Like, I know how much you have in your savings account and how much you have in your investment account. Your house is paid off in full. Your rental property is paid off in full. You're 27, right?
- [21:26]
A
You have no dependence.
- [21:27]
B
You're like, if I were you, like, enjoy that, right? Like, what's the point of making money if, like you don't enjoy it? But it's almost like she was like looking for me and someone else gave her permission to spend that money, which I thought was interesting. And someone else, she was going through a divorce and she's like, I just don't know if I'm gonna make ends meet. You know, my husband's getting half of all these different things. She has two small kids and she's like, I mean, this is gonna be a huge hit. I'll call her Elizabeth. I was like, Elizabeth, you have $350,000 in your checking account. You've paid all your taxes, you are covered all your operating expenses. Like, that's yours. Wait, I can live off. I'm like, yeah, that's, that's like yours. So yeah, I think it's just understanding. Like, you know, no one has their stuff together. We're all struggling. We're all have like our weaknesses. So don't be ashamed to like reach out for help because we're all struggling and we can all use help and it's just kind of up to like, if you ever do work with someone who shames you for that, like, get rid of them as quickly as you can.
- [22:36]
A
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- [24:55]
B
I like that. Yeah.
- [24:56]
A
And we have to know, like, this is my genius, this is what I can help people with, but this is also the thing that I need help from other people's zones of genius because I need to make sure that this is good and clean and clear in my business. And I think that just the awareness of that first and like accepting that and for, you know, even in my own business, like that I always have said like, you don't want me doing my own bookkeeping and you don't want me filing my own taxes and you don't want me designing anything. Like, I just don't need to touch those things. Other things I can do well, not those things. And, and I think that, that, you know, just kind of diffusing that shame and that guilt is so huge. And I love to hear that that's really what you pride yourself in and what sounds to be like a value of cookie finance and of the business, which I think is so key, especially when that's not always the case with financial companies out there. And so I do have to ask, and this is just kind of a fun question if you can think of it. I would love to know what is the, maybe the most unexpected thing that a client has legitimately written off that made you smile and say, okay, yeah, that tracks. That works.
- [26:11]
B
Let me think I need to think of some on air appropriate things because sometimes people ask things. I'm like, I don't know if that's deductible. And they're like, but what about this? And I'm like, actually, that does kind of apply to you. But no, it is, you know, we trying to think of like a good, fun one. I mean, it's always great when you come to us and they say, hey, you know, we are looking to write off this really fun family vacation. And, you know, how can we legitimately write this off? It's like, great question. Yeah, let's think about, like, what it means to have this write off, like, what type of content are you producing and are there affiliate links that you're having with this and are going to be, you know, documenting this entire thing and putting reviews and, you know, is there any type of sponsorships you can get with this? And like, how can, like, we make sure we write this off? So. Right. We're constantly trying to teach our clients, like, let's find ways to write things off legitimately. Like, we never are going to put people in danger. The benefit of being a content creator and an entrepreneur is like, how can I make this about my business to continue growing my audience and the trust and everything else. I'm blanking on, like, some, like, really fun ones. We, we did have someone, they actually, we wrote off actually a large portion of their wedding. Actually not the full thing, right? But at first when she came to us, she's like, hey, you guys, can I write off my wedding? We're like, absolutely not. That is a very personal thing, right? You can't write that off. And she's like, okay, well, like, let's think about, like, what would allow me to like, stand from the IRS and say, hey, this would be deductible. We talked about, hey, you know, is there any type of sponsorships? Is there any type of, you know, let's get an affiliate links, Is there. What type of content can you produce? Can you bring this people in this in and this in. And she put her head down and a couple weeks later she's like, okay, I actually found this one brand that's going to be sponsoring this part of my wedding. And actually like the photographer, she's going to be doing this for free and we're going to be doing this deal as part of this. And then I talked to this person and then she really made it a part of her content while still like, being able to enjoy her wedding.
- [28:38]
A
Right.
- [28:38]
B
And in the end, we're like, wow, there's actually quite a bit we can write off now because you really did like build a ton of content, a lot of things around it. There's some parts that, you know, we both agreed that probably wasn't, but so it's kind of fun to like find ways. And that's why I love creators because they're so creative and entrepreneurial and it's like, okay, how can I make this like, you know, part of my business and like make this grow? So yeah, it's just every day we get like fun things and fun stories. It's, it's just a fun group to work with.
- [29:13]
A
Yeah, I, I remember I did it with like a home renovation once. Not fully. Yeah, but it was like there was a room that I used to operate and run my business. There was certain rooms that were going to be featured in a magazine to support and grow the marketing and the messaging of the business. You know, there were things like that that when you and I love, you use the word creative. When you allow yourself to get creative and again co create and co collaborate with a financial partner, there are ways that you can legitimately, legally, you know, make this work for you. So thank you for, for just humoring me with that.
- [29:50]
B
And I think that's like one of the biggest ways that people are missing out on money is they're too conservative when it comes to deductions. Now you never want to push the edge and be like, oh, like my entire life is a write off and I'm going to do right this and this off. Yeah, like, like you're definitely going to get in trouble if you do that. But what we find most of the time is people are too conservative. And you know, when you look at maybe how their old accountant were doing deductions or how they think about deductions and you're like, no, like there's so much more you can write off. So you're saying out of the 12,000 miles you drove last year, really only 250 miles. This is like a recent example. Like really only 250 miles was related to your content. That's it. Like all those trips you did to Home Depot and all those trips you did here. Here. I was like, oh yeah. And what about when you drove here? And it's like people are a little too conservative. I mean some people are really crazy and we have to hold them back a little bit, but most people are a little too conservative. Like you're leaving money on the table by not thinking about your wife and everything. As a business?
- [31:06]
A
Yeah, absolutely. So if someone is listening to this today and they, you know, they've been doing it, but maybe they've been doing their own books or they've been relying on TurboTax or something like that. How does this person know when it's time to bring in a team like yours?
- [31:26]
B
Yeah, we. We almost use like a income threshold of when we say, hey, this really starts to make sense. I. Sorry, what was the term you use? Like, zone of confidence or zone of competency?
- [31:39]
A
A zone of competency.
- [31:41]
B
Yeah. I love that. I'm like, totally gonna use that for my team and then I'll credit you. Okay. Julie told me about this. No, I love that zone of competency. It's, you know, we usually tell people, like, once you get to, like, a hundred thousand dollars of revenue from your business, it's time. Like, you're. The amount of time you're spending on your bookkeeping and quarterly taxes or even just like, thinking about that, researching it. Like, what are quarterly taxes? Do I have to do this? Wait, I'm getting mixed messages. I went on TikTok, they said this, and they said this, and now I'm getting different information. Then, like, you kind of, like, get this anxiety and use the stress and, like, am I doing this right? Am I not doing it right? This person said I could do this. And, like, it's not like you're spending too much time on that piece where if you can outsource it, like, outsource that. Like, I think that should be one of the first things you should outsource so you can focus on just building your business. So we usually tell people, like, once you get to about 75, 100,000, start working with someone to, like, get that off your plate. Spend your time where you are best, where you can grow your business. Because you'll never grow your business if you spend, let's say, not that you'll never grow your business. Like, is your time better spent 15 hours trying to stress over taxes and bookkeeping, or those 15 hours building content, chasing brand deals and all that? Like, that's way more useful for your time. So that's kind of like where we tell people, starts to make sense. But some people love to do diy and, like, they'll just do DIY their whole time. And that's totally great for them. But that's about when we tell people it starts to make sense to bring someone in.
- [33:24]
A
And I would also add, too, for those that are listening, that, you know, maybe you. You have been just kind of Using a more traditional CPA that doesn't really understand the online space. That was the big indicator for me that it was time. Like, even though I already had somebody and I was, you know, and they were doing what they were doing, I just. I started to get these sneaky little suspicions that I'm like, I don't know if they really understand what it is that I do, just based on some of the questions that they were asking. Well, if you. If you get income coming in from different state, you know, it was just like all of these kinds. And I'm like, yeah, but like, it was just a very interesting kind of tug that I remember getting, knowing that it. It was maybe time to find someone like Cookie that, like, really understood the online business space, the online entrepreneurial space. Because there's just a different understanding that I think from my own experience and from experience that I've had, you know, when I've talked to clients about this, that just traditional CPAs that if they're working with, you know, construction companies and real estate agents, like, they're probably not going to understand the ins and outs of what it is that you're doing. So that's just another thing to kind of keep in your back pocket as you're listening. So, Nate. Oh, go ahead.
- [34:44]
B
I was just going to piggyback off that real quick. A great example is a prospective clientele. She's now been a client for about a year now. You know, she came to us and she was like, I have an accountant. You know, she's doing my books. She's doing all the quarterly taxes and everything else. I guess what maybe makes you guys different and talked about exactly what you were saying, like, understand the online space and the unique things that go along with that. And she's like, well, maybe you could just, like, take a look at my tax return and just see if you see anything off the bat. I was like, yeah, sure. She does about $350,000 a year, all Amazon affiliate links from fashion. And I was looking at her deductions. So she made 350,000 and her total expenses for the year was $5,000. I was like, whoa, whoa, whoa, whoa, whoa, whoa. I'll call her Katie. I'm like, whoa, Katie, you got $5,000 of expenses? She's like, yeah, I mean, like, we, like, we wrote off, you know, my phone, my Internet, like, a few things here and there. But she said, like, I couldn't write off my clothing because it was, you know, a quote unquote, personal expense. I was like, well, Katie, if you think about it, if you don't go to Amazon, buy that clothing and then showcase on your Instagram, you would literally make zero dollars. Like, yeah. I'm like, so that'd be like saying to a construction company, to use your example, like, you can't write off the lumber even though, like, you have to buy the lumber to build the house. It's like, oh, yeah. But she said it's personal. Like, I mean, it's personal, but it's also like, that's essential part of your business. Like, I would argue that in front of the IRS all day, any day, Right. I was like, well, how much did you spend on clothing? She's like, oh, it is like $35,000. I'm like, oh my gosh. Well, that's 10,000 plus dollars in taxes. You overpay. And it's like, oh my gosh. Okay. Like, yeah. So it's like making sure they understand that space and like the nuances. Sorry, I know you're gonna ask something else, but I know, I mean, you.
- [36:55]
A
Touch on a great point. It's so true. And even I remember an accountant that my husband and I once worked with. My husband's an actor and we were trying to write off his haircuts for the auditions that he has to do in order to act. And she said, you can't write that off. And he goes, well, I need to cut my hair. And she said, you don't have to. There's long haired actors. And I was like, I mean, yes. And but how, how can she prove that this haircut, you know, or how could the irs, like, you know, I. I think that we have some wiggle room here. And it's the same thing with, you know, my hair appointments that I then have to use to go do branded photos that then directly impact the image, the marketing, the perception of who I am as a brand that directly impacts the income. So I just think that again, someone like Nate that understands the nuances of this, because it is nuanced, is just going to be better fit and better prepared to support you when it is time to really look at all of the opportunities that you have in front of you. So I just, I can't stress that enough to those listening. And with that, I know that you created something called the creator business essentials. So can you walk us through what that is and who it's for? Because I think that this kind of rounds out a lot of what we were just talking about.
- [38:17]
B
Yeah. So where our biggest thing is, like, we want to Help creators, no matter where they're at. And the thing that killed me the most during, you know, the last few years of doing this are the creators who are just starting out. The more micro influencers who, you know, aren't quite ready to go full time, they're just starting this journey, they need help, but they aren't quite at the point where it makes sense, like, hire someone full time to get things set up. And we would take those conversations with those people and we point them to different guides and say, oh, like, go do this, go do this. And here's a few videos we put together for you. But we really wanted to create a solution for them, to support them. And so the Creator Business Essentials, what it is, is we provide. We get you an llc, an ein, which is like your Social Security number for your business, basically a registered agent to protect your identity, your address, and all of that. So that's a public record and a checking account as well. So we kind of provide all those foundational things that we talked about. So that way, as you're getting things set up and you say, oh, cool, I just got my first brand deal. Like, I finally got monetized on YouTube. I finally got this. Great, now let's take that first big but kind of baby step of in my LLC and ein, that bank account. Like, let's start that journey of getting things set up from the very, very beginning. Because even though most people don't have that, when they come to us, when they're making more money, to me right now, the sooner you can get that set up, it makes your life infinitely better. And I'm sure Julia is like, you've gone from multiple different businesses. You're like, okay, now I know how to set this up right from the beginning. So that's what our creator business Essentials is. We just launched that publicly today, which is kind of exciting. And so you get your llc, ein, registered agent in a business checking account kind of as part of, like, you know, for 29 bucks a month to kind of get you started on that journey of getting your business and all that set up properly.
- [40:26]
A
Beautiful. What a great first step for those that just want to kind of start to clear out the clutter and then, you know, work towards the next steps. So that's fantastic. We're going to have a link in our show notes that also link to that and more information as well, so you can find that there. But I have one, one final question for you before we wrap up, Nate, because I know that you have been literally on the inside of hundreds of creator businesses, all different shapes and sizes, all different types, what do the ones who thrive long term financially all have in common?
- [41:05]
B
Ooh, that's a great question. I love that. I would say the ones that thrive the most are the ones who take their business and treat it like a business. I think a lot of people, we were talking to someone at a conference a couple months ago and she's talking to us and she said, oh, content creation is just a hobby, it's not a real job or whatever. I was like, okay, cool, that's great if you think about it that way. And I said, how much are you making each month, if you don't mind me asking? She says, oh, I'm making $12,000 a month. I was like, no, that's a real business. You're making close to $150,000 a year. Oh my gosh, that's not a hobby, that's a real business. But I think time and time again what we run into is people view it as a hobby because I think the world at large, right, your parents and these whatever, they're like, oh, this is like a cute hobby or whatever. And I think a lot of creators kind of take it that way and they say, oh, this is just, you know, a hobby, a side, whatever. They want to think about it. And when they don't take it seriously, they don't make those long term investments into building the business. They don't set things up properly. And I think it's to their detriment where the ones who really, really view it as a business. Okay, great. You know, I'm at this revenue right now. I'd love to get to X revenue or X followers, whatever it might be your goal within 12 months. And here's what we're going to be doing to really achieve that and not just leave it up to the algorithm gods to like make it happen for you. And then as they're using that money, they use that money strategically to actually make that happen. Right? It's not just money in, oh, cool, I got my first, you know, real paycheck and now I'm gonna go blow it on this. And then they don't have money to like reinvest in the business. So I would say it's that mindset of, no, this is a real business. You, yes, you're a creator, but you're even broader, you're an entrepreneur and as such you need to treat this like a real business. And as soon as they do, they start thinking of different Opportunities of, oh, how can I grow this? Oh, here's another business I can kind of wrap under this business and this line I can launch and then like it suddenly becomes more than just you and the camera. It's a bigger business. So I'd say that's probably the biggest thing that I've seen and that's such.
- [43:45]
A
A great takeaway and a great reminder in every step that we do. And you know, I think just a theme of not waiting to be ready, whatever ready means, you know, not waiting to really take that first step or maybe it's even, maybe you've already taken the first step and it's, it's about taking that tenth step or that next step just again to set yourself up and your family up, if you have a family for that long term financial gain. So with that, Nate, thank you so much for coming on and sharing your wisdom and your gifts and just really how you support this much needed and thriving and ever growing and changing economy and industry that is the creator economy. It's definitely not a hobby for a lot of people that you and I know. So I love that you were able to just offer some really great insight. And then again, for those who may be interested in learning more about Cookie Finance, we have a link in the show notes that you can click on. And Nate, if you are on any social media or if you have any other resources that you want to share, you could do that now.
- [44:46]
B
Yeah, our website, we have tons of great articles on our website. Just Cookie Finance co, our blog has tons of great stuff. Our Instagram has lots of good information. We try to post really practical stuff. Entertaining as well, but very practical advice as well. So definitely check those places out for more resources.
- [45:05]
A
Beautiful. Well, thank you so much for being here today and for sharing all of this goodness with us.
- [45:09]
B
Yeah, thank you so much.
- [45:12]
A
As always. Thank you so much for joining me today and every week here on the Influencer podcast. If you're wanting to dive deeper into the topics and discussions that we have here, I would encourage you to head over to juliesolomon.net and sign up for my weekly newsletter. It is in our amazing newsletter community that we are able to really support you on a much larger scale. Scale. And I love to do a ton of amazing things that I send inside your inbox every single week. So just head over to juliesolomon.
- [45:43]
B
Net.
- [45:43]
A
You'll see a little spot there that you can add your information in and you will get on the list and start receiving all of that good stuff.