Biz Thread: Do You Re-invest Your Revenue?
 

For those of you who make money at this biz, how much do you re-invest back into your business? Say as a percentage of your gross revenue. 10%? 20%? 50%? Or do you cut a cheque to yourself and your people and laugh all the way til the next cheque comes in?

Note: I don't mean mere business expenses. I mean money you spend expanding your business. ie: new ventures, new advertising, better equipment, etc.

I'm curious.

50% back into advertising :thumbsup

I'd invest more if there was more to invest in as a free site / tgp type webmaster.

I'm not afraid to spend money to make it though. I buy a decent amount of traffic every day.. but aside from branching out into paysites or something...

So you buy traffic every day?

Pardon me, but I am in the dark. Do you run a TGP, or do you mean that you submit to TGP's? If you run one, can't you get better scripts, better designers, logos, branding, advertising, etc, over and above simply throwing traffic at it?

60-70%

If you include hardwear.

Computers/Networks ect.

hardwear aye.....

I think it may also depend on how long you have been in this industry or on your current venture. A person just getting into paysites may still be putting out large expenditures for server space, initial traffic floods, etc. It would be awesome if you could include in your answer how long you've been doing what you're doing. :)

way too much

I have a few fake TGPs, I have free sites, AVS sites, I submit some galleries.. etc..

I have all the best scripts.. I design my own stuff, I dont need pretty graphics, a ton of content..

Basically all I really have to buy is more traffic, and finding a good source of traffic is hard.. I take all I can get from a couple places, and I do some keyword type stuff on google and overture..

I guess the next step is to branch out and maybe hire someone to build more sitres for me or something. I hate employees though.

I still don't make money.

Any word from the well-known heavy hitters? Shemp? Sleazy? KRL? quiet? (If you feel you belong in this list but your name is missing, please forgive my remissness).

I would say over 80% is put right back into the company. I rarely take out from the company unless there's an urgent need and since corporate taxes are lower than personal, I tend to leave most earnings within the company.

WG

I throw everything in the bank, but I don't invest into propery and stocks. I invest back into the business that I know which is adult. :)

i prepare a detailed business plan each year using projections and trend analysis. this is the first year since 1997, that i did not project a growth factor for our sites. Based on that, this year's plan is based on cutting expenses and maximizing the $$ return/site visitor ratio.

so based on the above, there was no money allocated for expansion this year. should an opportunity arise though, we would use a portion of our contingency fund, which is approx 11.5% of our revenue...

Excellent info! Thank you Shemp and WiredGuy and FHM!

I invest most of my money into real estate now. :)

DH

Showoff :)

Saving money is a poor persons mentality. My job isn't a webmaster, my job is acquiring money. Keep making it, then reinvesting it, getting more back and spending what's left. The only job a wealthy minded person has is finding more ways to multiply the money they make.

Salaries are for suckers. :2 cents:

I would say about 45% - 50% Feel brain dead today, so can't give details. Maybe later girlfriend xoxoxo

you are not alone in that philosophy.
thats why we have the bankruptcy act.

Don't mean to showoff.

I'm sure there are lots of people here that will be glad to flaunt their porches and bling bling cars. However if the internet crashed today, how many of them would still have those cars after a year.

Worse comes to worse, I have a roof over my head. :winkwink:

DH

I invest all our money into Cobras baby - his car, over $5000 in the last month to get it show car ready again this year.

But an intresting thread for ideas, I've been looking for ideas to start investing my money into.


Smurfette

And limited liability. I will NOT be held responsible for any failed actions :winkwink:

post a pic :)

i would have to say at least 30-50% gets put back into the biz each month or set aside to hire new designers.

Some months i slack like holidays and whatnot but generally i am very good about putting back into the company

-Loki-

I take out a small weekly allowance and put 70%+ back into the business or other investments.

That's very true. All our vehicles are ours, paid in full. I wish I could say the same for the house, but at least the property value has gone up 60k$ since we bought it, so we won't be out the interest. Now that my audit is paid off, I'm hoping to throw some money back into my own site in a serious way and see what I can make happen.

It's great seeing how the real business people run their businesses. Thanks everyone for the feedback!

lately I have been trying to "save" 80-90% of my profit
my bank account has never been bigger and I plan on starting a big investment soon :thumbsup

How bad did the CCRA nail you? I've been fighting mine for nearly 6-8 months now.

WG

I fought for over a year, and got them to knock 10K$ off their original asking price. So it came out to 21K$ with interest for 1999 and 2000.

I'm just SO glad it's over. What a stress!

Yup, my stress levels the last few weeks because of them is through the roof. Once I got my lawyers/accountants involved, they seem to be backing off, I've managed to get their asking amount slashed by nearly 65%. I just can't wait until this is all over with.

WG

hey guys!

Well what we do here is
reinvest around 10-15% of our revenue into the current internet business, Suprisingly our internet business requires very little reinvestment :)


the rest goes into purchasing money producing assets, such as offline business, real estate.

Internet is great at stuffing money into your investment properties.

I do the same I put about 50% back in though I also make new report every year with estimates and any market that I am in I do a market segmentation report and collect as much info as I can on possible trends that could effect the future outcome....

Those of you who do detailed analysis reports, do you create them yourselves, or give the numbers to someone else to process?

Great thread, bump :thumbsup

I am with DH. I invest outside the internet. I buy real estae and I am now looking at a business. I just don't see my niche of the internet as being there forever.

I do not do any growth projections as so far i had no idea it was going anywhere. I just try to keep making money and moving it to safer havens.

My next investment will be a brand new ellinude.com account. :Graucho

i reinvest it into real estate. i spend about 5k in advertising a month but it just goes on my credit card and gets paid off at the end of the month. i usually use 1/3 of my checks to pay off all my bills and invest the rest in real estate.

I am a good employee :D

:glugglug :thumbsup

well givin our crazy $60 payouts way way too much LOL

Everything into high end domain development projects right now.

you gotta spend money to make money. i'd probably say about 30% or so for myself.

around 75% of my monthly earnings stay in the corporation. The rest pays the rent, food, car payment etc.

I try and put %80 back into the company but month to month things change once a month I sit down and plan for what i'll need for the month...

the year pay all of it when back in to the biz . Now I would say 25% , if something stops growing it starts dying.

I invest maybe 10% back.....I really should invest more.....:(

Wise words.

From this avenue of income, I probably invest 60/40. :)

It's all relative, 25% of ones persons money is different then 25% of someone elses money.:)

worse comes to worst i can always move cakes :)