While there are many ways to promote your site, banners, pay per click or link exchanges to name but a few, how much money should you put towards promotion? Should you set aside a percentage of your income each month or should you use a set figure?

While there are many different things to consider such as, the effectiveness of promoting in certain areas, actual profit per sale and the age of your business, many people like to retain a certain percentage of their profit each month (if in profit) to reinvest into the business. However, you should only reinvest into the business when you can see a tangible return on investment. There is no point promoting your site purely so that you can have you name in the public eye – you need to see an increase in sales and a return on your investment.

There are no set rules as to how much you should retain to promote your site, or whether you should actually retain a specific amount of cash for promotion – it is up to you as you are the one who should know where to promote and what kind of return you can expect.

In the early days you may actually need to reinvest all of your profits back into the business, where you can, in order to build for the future. There is no point in bleeding your business dry while it is still young and stunting the potential growth for the future. A company needs to breath, to grow and above all to be fed – the food in this instance is your promotional budget.