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How much to reinvest?

by CharlesL
6 replies
Say you have a site making $500 a month or whatever. How much of that do you put back into the site? Do you spend a set amount, like 50% of profits? What do you spend it on?

I ask because I'm having a hard time persuading myself to spend any money on a site of mine, even though it's making money. I think though that if I set aside a set amount every month to spend on it that might make it easier.

What do you think?
#reinvest
  • Profile picture of the author Riggs
    Depending on your operation costs and disposable income, I'd say a 30 - 35% average reinvestment of profits is reasonable. It's difficult, as there's always going to be a level of risk involved worth considering. Your interest in reinvestment should generally balance aside how confident you are with your future profit projections.
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    Website: https://jacobriggs.io

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  • Profile picture of the author Kecia
    Typically, reinvestment is done to free up your time and/or make money. Is the site running pretty much on autopilot? Could you eliminate some of the site-related tasks on your to-do list if you outsourced them? If the second question is yes, then that's where you should invest.

    If you are currently using free traffic methods but feel you could get more visitors if you used paid traffic, that's where you should reinvest.

    Could your create a new site with your profits, which could yield the same income your current site does? Then it would be worth it to reinvest in order to double your income.

    As far as a certain amount for the reinvestment, that's a business decision you'd have to make on your own. If you are happy with the traffic, growth, and income of your site, there's no reason you HAVE to spend any of the profits on it.
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    KeciaHambrick.com - Blogger. Content Creator. Social Media Enthusiast.
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  • Profile picture of the author John J M
    If you can scale by outsourcing small tasks to free up your time and drive more traffic, do it.

    Think of it like this: Make $500, invest $100, next month make $650 (gain $50 and work less)
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  • Profile picture of the author cuie
    Depends on your return on investment. How much more profit would you make if you invested x amount of money to your business?

    If the new investment doesn't generate more profits, do not invest anything just for the sake of it.

    I would invest 100% until the size of the business supports me. After that I'd invest profit - my expenses = 100% after my expenses.

    If I throw money at something and it throws more money back at me, I keep throwing until it stops or until I find more profitable "money-thrower"
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  • Profile picture of the author cuie
    [My original post was a double]
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  • Profile picture of the author Not So New
    For a new project and site and put everything back in until it hits levels that I'm happy with

    Willing to make zero profit (even lose) at the beginning for faster growth

    -Shawn
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