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How much goes back into your business?

Discussion in 'Making Money' started by anabolicdragon, Feb 16, 2009.

  1. anabolicdragon

    anabolicdragon Junior Member

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    I have a general question for everyone here. After you pay for your hosting fees, how much of your internet money profits go back into the business? For example stuff liek PPC ads, buying traffic, buying backlinks, SEO stuff, anything that you do to improve your business. Then what precent goes into your accounts as spending money or money to save.
    I am just wondering what precent I should be putting back into growing my business and what precent I should be "cashin out" to my saving\checking or to buy my toys\spending money.

    I know this will be different for everyone, cause everyone has differents needs but I am trying to get a general idea. I guess this is a genral business question.
     
  2. nonhacker

    nonhacker Regular Member

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    I guess for a lot of people here it would be, How much does your Internet Business cost you. Because a lot pay for all those things and dont make enough to cover what they pay.

    Personally I spend what I need to or can justify to increase the income
     
  3. blackhit

    blackhit Super Moderator Staff Member Jr. VIP Premium Member

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    When I started I invested everything back into my business.

    More domains, more hosting were the 1st things I expanded on.

    When the money started coming I invested still everything in scripts and software that would make my time more productive.

    At the moment I had a strong foundation of the tools I need the percentage going back into my business dropped every month as all the big investments had been made.

    At the moment about 30% goes to new scripts, new projects, new hosting and more domains.
     
  4. berrycorp

    berrycorp Guest

    ummm 80-90% goes back.... but the numbers are big so m actually spending a lot :)
     
  5. blackhatcatz

    blackhatcatz Power Member

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    60% slowly going down. Hopefully next month would be like 40% and 40% savings and 20% traveling and other expenses where I just waste my gold.

    All the best,

    Catz
     
  6. bl4ck1ce

    bl4ck1ce Regular Member

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    Up until I started consistently getting payouts from Adsense and aff networks each month, I put 100% back in. Now I use the income from 2 months of each year from my main website to pay for my various services (web hosts, autoresponder, various subscriptions and memberships), and the rest goes into my bank account via direct deposit.

    For income from hosting, which is part of my 'official' business, I transfer out any costs incurred by the hosting (eg new domain regs for a client) immediately to zero out my expenses.. and the rest of that is what I spend on misc. IM stuff like new domain names, scripts, articles/plr, etc.

    I do the same with the ebay side of my business, I pay my ebay fees from my paypal account, pay shipping from that account, and what's left over is re-invested in IM stuff. As far as the percentage that is... I haven't bothered to calculate it, but for one of my main items I've sold on ebay (I sell my own information products), I make about 6x what the product costs to produce and ship, and the shipping fee I charge the buyer covers all of the shipping cost plus about half of the production cost.. and once I've used up the shipping supplies I've already got I'll be packaging them another way so even more money will go into my pocket, or rather, back into my IM business.

    edit: missed a couple of words.
     
    Last edited: Feb 16, 2009
  7. the_demon

    the_demon Jr. Executive VIP

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    I haven't paid for hosting in years...

    What you do is get a powerful enough host(s) to maintain multiple websites and then use the hosting fees that you charge from your clients to pay for it... This means each person pays only a small percent and everyone saves money in the end.

    I've been able to cut costs left and right while growing my business by about 400% or more / yr. The trick is planning and investing. I get the right people for the right job. Get free lancers to come in when I need something done in an area where my skills lack. Rather than me wasting my time I can get a cheap free lancer and make 4x what I pay them while still paying them a lot of money and keeping client costs down.

    ... One strategy in a time like now is while other people slack on their marketing budgets you need to amplify yours. Then your building your brand while they shrink into a corner and though your spending more money initially you capture way more leads.

    So for me I don't have a set percentage. If I have the money for marketing or if I see an advantage for marketing I do so and build clientele. I also do networking and talk with friends and family and Identify people / business who can use my services or whom I can barter with....

    For example, I know several tax preparation guys who own their own firm. Both of these men our the dads of 2 of my friends (respectively) and so I'm going to be having talks wiht them about me building their website in exchange for tax advice and how to keep as much money in my bank account as the law allows.
     
  8. Infinity

    Infinity Registered Member

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    The same as hobby :-)
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    Well, it all depends on how long have you been working and what is your investment strategy. Usually you have to start by investing more than you'll get in return and some time has to pass before your work starts generating some real income. After that it's up to you how much of it you're eager to spend on further investments. Personally, now that I'm getting steady I try to invest about one-third of what I earn.