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Are you buying high point horses that are older than 10? If so, you have to be cautious, as some of those horses will not be gaining much points (they reached their peak) so you ultimately could make little profit. I only auction my poor doers who don't earn well anymore, as I'm sure many players do.

I keep all my foals. When my 10+ year horses hit a level of not earning much, I toss them in the auction. I get a lovely payout for IVs, make room for more foals at the same time.

All my bred horses reach at least a Level 7N, but most at least 7W. These are good spots for show horses. I find horses that level off in 8L earn very little points, they are the first to go when they hit 10 years old. I also make sure to keep the good point earning horses at 8R, 8N, 8W. When they hit 10, I look to see how many points they have. I keep anything with 500+ points, auction the rest. The high levels will already have way more. I generally auction the lowest couple point earners from each show level too.

I occasionally purchase pointed foundation mares to replenish ET mares in my barns. Everybody gotta earn their keep if they aren't in pastures.

Buying pointed horses helps you build your barn points/daily payout faster, but it isn't more profitable. You can get a great daily payout by slowly building your show herd with your own foals too.

@humbolt thanks so much, I really needed that information!

I did a little reasearch early on for looking at how points were earned. Just like in real life, local shows don't get you much for rewards when compared to attending world championships.

This mare leveled off in 8L, she placed mid pack in the class, earned 3 points.

15093003

You can see show results for the current week if you click the class link on their show records. It brings you to this page. 8 local earns this for points.
https://www.huntandjump.com/classes.php?class=72179301

Now this mare is at a lower level, but world. 7W. She earned 28 points in her class.

15093093

Show results in 7W are big earners. Most 2nd gens from Expro foundations end up here. I love this level and this is why I keep my foals.
https://www.huntandjump.com/classes.php?class=72179293

so those 3 points, and the earnings, can someone explain what those do to a horse?
do the three points mean say, a horse with 500 points now has 503?
Does that add into the daily payout?
and where do earnings fit in?
@humboldt
thank you!

take this horse for example:

FR15695074
only at level.6, but earning 30 points at a show. I was auctioning it, but now I'm not so sure.

so those 3 points, and the earnings, can someone explain what those do to a horse?
do the three points mean say, a horse with 500 points now has 503?
Does that add into the daily payout?
and where do earnings fit in?

Correct those 3 points add to their total. In the mare you posted, she has 30 points more after the most recent show. Your daily payout from the horse is a portion of those daily points, so the more points, the more payout you get.

I don't track earnings. I feel like show entry fees and show earnings even out. I worry about horses earning points.

The mare in your example is actually earning quite well. She leveled off at World, so if she stays there for a few weeks, great! Occasionally they like to inch over the line and level up to7L. If she does that, its worth it to auction her because she won't gain nearly as much points. You get her lifetime payout because she is 10 years old, so you don't lose out.

In my barn, I don't keep foundation show horses. My 2nd gens all finish out at level 7W or 8L when they are 10. But I breed with Red/B papered foundations only, so my 2nd gens will be slightly higher or better than someone who uses Yellow/C foundations. I don't know where those end up, my guess is more 7N level.

I'm doing something like what you're doing now. but I never keep all the foals. by the time they're 2 and have been shown a few times, you can already spot the poor showers. it's up to you what percentage you skim off the bottom. but from what I've seen they are very consistent, the high scorers keep making more points from the beginning

I don't recommend culling a bunch of young horses. Horses at this stage are consistently training. They move in and out of places quickly. Plenty of my babies show poorly, but are in my barns at 25 years old because they leveled off in a sweet spot for points. That being said, I mostly breed consistent horses and I breed superior for every generation. I do this so my horses are good producers - whether they give me show horses or breeders - I make sure they are better than the previous generation.