The Trap of “Look How Much Money I Just Made”
Performing magic professionally means that you’re also a small business owner. That means that any of the money you make performing is actually money that goes into your business.
It’s easy to think that after doing a magic show it FEELS like easy money. You can leave the house for a few hours, have some fun, perform a few tricks, and come back home $1,000 richer. Compare that to everyone else you know who needs to go to work for an entire week to earn what you make in a single afternoon.
This type of thinking is very deceptive though because what you make from performing is NOT what YOU personally earn. It is NOT your salary. Your performance fee is what the BUSINESS makes. The money is what you’ll need to operate on to sustain your entire business.
For example, let’s say you perform at a show that pay’s you $1,000. Let’s see how that would breakout into your business bank accounts and personal accounts.
Performance Fee: $1,000
Sales tax / Income tax (25%): $250
Business account (25%): $250
Personal savings (15%): $150
Rent (20%): $200
Your wage (15%): $150