What do you do with your profit? I try to reinvest it where possible to ensure a stable business, but often I find myself using it for personal gain.

All of the money I have made so far has been about 50% reinvested. Is that too low or too high? What do you think?

50% is a good call if you are doing full time. Perhaps you should consider your needs too. Then reinvest the rest...

In the early days of a new business it is tempting to start withdrawing most of the profits quite quickly, but this is the most important time to be re-investing the profits back into the business to help it grow.

I guess it would depend on the type of business. I operated a business website for a couple of years that sold online advertising to local used car dealers. When the business was new, I experimented with different methods of advertising the business so I could keep track of which advertising was the most effective. As it turned out, advertising the website in the auto seller magazines was better than the newspaper, fliers, radio and other publications.

So I would budget so much money a month for advertising, so much for expenses, and the rest was profit.

Getting it started was a drain on the pocket book though. I funded the first three months of advertising costs with profit from my main business, and that was a little costly.

Best Regards,
Steve MacLellan

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HomeBusiness Websites | OverEx.net

Right Steve, tracking your 'experiments' or 'tests' and then sticking with what works...

Correct Steve. Finding the right ROI (return on investment) method is crucial to any business

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Dave Hermansen
StoreCoach.com - 100% Free Ecommerce Training

Personally any money that is left after all my expenses and cost of living gets reinvested into new on line ventures. You never now if one of them goes belly up of if my Adsense income dries up.

Or if you get banned from Adsense....