What Percent Of Your Profit Do You Reinvest In Your Business?

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Many successful people running a business offline and online have told me or I have read that you need to reinvest in your business if you want to take it to the next level.

It took me about 6 years to get that through my thick skull. Once I got it I started reinvesting in my self and business.

Most of it has been automation tools or services for bookmarking, submitting articles, paid forums for learning, software tools that make my IM easier and the rest office supplies, WSO's and ebooks and a tiny fraction to PPC to test conversions before committing to organic search campaigns.

After looking at last year I realized I was spending about 37 cents for every dollar I earned! Now granted I am doing this in my spare time and I suspect that figures will vary a lot and it would be interesting to hear why.

I will say that that 37 figure is up significantly from last year but some of the competitive niches I am in have become a even more competitive and I have had to spend either time or money on certain things to keep my serps propped up! Not complaining but just making a statement.

Now that being said it would be interesting to hear what other people spend as a percentage or cost per dollar earned.
#main internet marketing discussion forum #business #percent #profit #reinvest
  • 20% reinvest
    25% for taxes
    10% education
    45% for me :-)
    • [ 1 ] Thanks
    • [2] replies
    • Banned
      It is important to reinvest your profits back to your business.

      And newbies....when you gain some early revenue, it is hard to do so, but you have to reinvest this back into your business.
      • [1] reply
    • Would you mind telling us how you're only paying 25% of your income for taxes, especially if being self-employed means we need to pay the full Social Security taxes without any employer subsidies?

  • Right now, 100%
  • took me ages to get that through my head too! that I need to reinvest, I was only reinvesting about 5% to 10% and saw my profits go down for over a year.

    Now I invest around 30% mostly in wages so that things get done without me! Best thing I ever did! Profits are growing and I'm less stressed and have more free time for myself.

    It's the part about giving up the money that people are worried about, 'will I get a return for my investment?' if you know what your doing and have a solid plan then investing will bring your money back big time!

    The key is to find an income system that works first, find this out yourself, then when you find something, invest in people to duplicate it and get it done for you so you are free to research new strategies.

    Don't invest into anything if you are unsure!
    • [1] reply
    • Funny you mentioned wages ....
      I forgot part of my 37 figure had to do with outsourcing. My hunch on that because I am too busy to break it down is about 5 percent went to outsourcing but remember about 10 cents on every dollar went to automation tools and I have found that key this year ... sort of the same as outsourcing in a weird thinking out of the box way. So almost a third of what I reinvest went towards making more of me's. I think that figure will eventually take a larger chunk of what I reinvest this year. I just seems to make sense because once you know what you need to do to make a profit it is sometimes easier to have someone else(or automation tool) do it.
  • only if your outsourcers are using it, if you are then your doing the work still! which doesn't free you up, you can only grow so much as you only have so much time in a day.

    using other people's time is the key to success I have discovered!
  • im investing around 120%
    Putting most of the money I earn from my 9-17 job into the online business.
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