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Blog Revenue: How much do you reinvest?

There are some blogs that make money, and others that do not. At this time, this blog fits into the later category. I have yet to consider any monetization methods, and am probably still a few months away from doing so. Until I am comfortable with the content and traffic, I will stay away from monetization. But with that being said, I have been thinking a lot about how much money should be reinvested in a blog. In other words, what percentage of your blog’s revenue do you reinvest?

This is a question that every blogger will answer differently. There are some that like to reinvest every last penny that they make, while others would rather keep the money for themselves. And guess what? There is no way of saying for sure what is right and what is wrong. It really depends on your goals and situation.

If your main goal is to grow your blog as quickly as possible, you will definitely want to reinvest some of your revenue. How much, you may ask? Well, that is for you to decide. You may want to take a certain percentage of your overall revenue, or simply have a set amount that you will use for reinvesting each month.

On the other side of things, if you are trying to make money with your blog to sustain your current lifestyle, reinvesting may not be the best idea. After all, the $100 that your blog earns may be needed to pay some bills. If you are in this situation, there is no need to worry. Even though your blog would probably grow faster if you were to reinvest some earnings, if you continue to post quality content, your traffic should naturally increase; even if it takes a while.

It would be interesting to find out how much money the big time blogs reinvest. For instance, do you think John Chow has to put any money back into his blog? I am sure he does this to a certain extent, but with over $10,000/month in revenue, it is probably not enough to make a huge difference. In fact, it is safe to say that he probably reinvests more money in his blog in one month than most blogs earn. But remember, even he started somewhere!

As the month winds down, consider your blog reinvestment strategy. You may find out that tweaking this could help your blog reach new heights in August!

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5 Comments »BloggingJuly 26th, 2007

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