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Deciding When and Where to Spend Money

by dvduval
11 replies
I'm sure some of you are like me in that you have multiple projects and websites, and deciding where to focus your time and money can be a challenge sometimes.

Likely some of your revenue producing methods are working well, and you tend to spend more time and money on those. However, you may also find some are not working as well as they did previously, so you have to decide if more money is needed to improve the situation, or if maybe putting more focus in a new direction would have better payoff.

And with the web being so full of possibilities and new directions, I'm sure you have a list or some bookmarks of areas you want to explore. But then it can be very unpredictable knowing how much time and money will be needed to truly get a new project off the ground (not just repeating and old one).

So how do you decide?
#deciding #money #spend
  • Profile picture of the author Jeff Schuman
    I pay for hosting and my autoresponder. I outsource when I can such things as writing, backlinking, blog setup and so on. If I join a program that has a monthly fee I expect it to pay for itself in 90 days or less or I cancel it.

    Now I try not to start something unless I am serious about following thru with it. It is to easy to buy WSO's, join an affiliate or mlm program, and so on with the idea I will get back to it.

    I usually do not do well getting back to things and it ends up depleting my bank account and taking up hard drive space.
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  • Profile picture of the author Jenna619
    Usually the ideas that I have that put the most fear inside of me I got to go for first...I always notice the things that make me the most money always involve a good amount of risk....

    If you don't take the risk then you are never going to know how you can make mad money from more income streams.
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  • Profile picture of the author Rmoney1990
    Hey guys, I just started but it seems to me that it would be far wiser to keep working with a method that is making you actual money, then reinvest your money back into the same method IMO. Rinse and Repeat.

    Just gotta remember the bigger the risk the reward has to substantial enough to even think about in
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  • Profile picture of the author Snowclone
    I focus on being cashflow positive as my number 1 priority. If I'm not cashflow positive nothing else matters. I would recommend the same for you, after that plan a few medium and long term projects accordingly, but always stay cash flow POSITIVE.
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    • Profile picture of the author dvduval
      Originally Posted by Snowclone View Post

      I focus on being cashflow positive as my number 1 priority. If I'm not cashflow positive nothing else matters. I would recommend the same for you, after that plan a few medium and long term projects accordingly, but always stay cash flow POSITIVE.
      I don't always do that. There have been some times where sales were down and I actually spent more to try to jump start things and it worked. For me, the hard part can be to scale back on something that I put so much time and effort into it that I feel a little sad to let it go, but I'm getting better at that.
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      It is okay to contact me! I have been developing software since 1999, creating many popular products like phpLD.
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      • Profile picture of the author Snowclone
        Originally Posted by dvduval View Post

        I don't always do that. There have been some times where sales were down and I actually spent more to try to jump start things and it worked. For me, the hard part can be to scale back on something that I put so much time and effort into it that I feel a little sad to let it go, but I'm getting better at that.
        Ya I definitely understand that. I lost over 50k worth of site value after penguin and having not diversified my income I was up the creek and my main focus was getting cash flow positive so all my other projects had to be put on hold (those that were financially draining with no return) until I was profitable again.

        Learned a great lesson a very hard way.
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        • Profile picture of the author dvduval
          Originally Posted by Snowclone View Post

          Ya I definitely understand that. I lost over 50k worth of site value after penguin and having not diversified my income I was up the creek and my main focus was getting cash flow positive so all my other projects had to be put on hold (those that were financially draining with no return) until I was profitable again.

          Learned a great lesson a very hard way.
          I'm sure many of us have learned this way, but it is good that you had 50K to lose. It means you did something right before that most likely.

          I've seen a lot of people lose money in this business, and I think you just have to know when to stop when something is a loser, or at least how to adjust your investment level to fit the "new new". But you also have to be able to spot opportunities, and sometimes that means investing more in something that already had past success even if down a little.
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          • Profile picture of the author China Newz
            Thoroughly research the areas that you are exploring. Try to find expert sources as well as facts and figures that can give you an idea if something is worth pursuing. Look for threads in forums like this one to see if somebody has already tried to execute your idea. More than likely somebody else has had your idea and has already tried to make money from it. Find out how many hours they had to put in, how much income they have earned from their endeavor and what their experience was like.
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            • Profile picture of the author dvduval
              Originally Posted by China Newz View Post

              Thoroughly research the areas that you are exploring. Try to find expert sources as well as facts and figures that can give you an idea if something is worth pursuing. Look for threads in forums like this one to see if somebody has already tried to execute your idea. More than likely somebody else has had your idea and has already tried to make money from it. Find out how many hours they had to put in, how much income they have earned from their endeavor and what their experience was like.
              And then you often need good people to help move you forward. When you can find someone with energy and knowledge in the new area that can do wonders too. However, there are also people good at selling you, but not so good at implementation.
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  • Profile picture of the author mrgoe
    Originally Posted by dvduval View Post

    I'm sure some of you are like me in that you have multiple projects and websites, and deciding where to focus your time and money can be a challenge sometimes.

    Likely some of your revenue producing methods are working well, and you tend to spend more time and money on those. However, you may also find some are not working as well as they did previously, so you have to decide if more money is needed to improve the situation, or if maybe putting more focus in a new direction would have better payoff.

    And with the web being so full of possibilities and new directions, I'm sure you have a list or some bookmarks of areas you want to explore. But then it can be very unpredictable knowing how much time and money will be needed to truly get a new project off the ground (not just repeating and old one).

    So how do you decide?
    I think you started of in a bad direction. It`s not about new or old, it`s not about which website needs improvements.. It`s more about statistics regarding what projects will bring you the most cash with less expenses and where is there still a possibility to scale it up. I must say that I have some passive income from some subniches that, although very profitable, have no possibility to be scaled up anymore.
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