You know what my problem is?

[dan_Vt]

Every penny I make with my online ventures I re-invest into them.

While this is helping me develop, I'm truly making nothing.

How do you guys handle profits? It seems simple enough, re-invest a percentage, or every month take out a certain amount for your bank, but it always seems like there's somewhere that money could be used.

But, I'd rather have this problem than the opposite.

 

[Skinny]

I think it's a good model at the beginning. I was reading something about this on a blog about domain tips (it really applies to any venture) however at a certain point where the venture is large and sustainable you could start to use part of the revenue for yourself and re-invest the rest.

 

[Steven]

My advice is:
Don't expand too fast.

Many people like to expand their business fast because they believe they can earn more profit faster. It's also what can cause their demise.
Patience and hard work are few of the things needed in the web business for it to be successful.

 

[dan_Vt]

I think I'm going to continue re-investing until my profits go from the hundreds a month to thousands. That gives me a goal.

 

[AdoptableDomains]

It depends why you are doing it. If it's your only job, then you have to make a profit to live, and can't roll all funds into new purchases.

In my case, it's not my primary income and I've rolled sales into new purchases to build the portfolio. With a large portfolio, hopefully you can let the business pay for itself with parking and sales. Hopefully, at some point if I ever tire of it, the portfolio itself will be worth more than the sum of the individual domains. If you know what you're doing, it can be a better investment than stocks and traditional investments. it can also be better than rental properties with a lot fewer headaches of dealing with tenants.

If you don't need the money to live, nothing wrong with rolling it. Just know the difference between building a business and gambling. At the point it doesn't pay for the renewals, you've probably gone too far and need to stop buying and start selling.