How Much Should You Spend on Your Marketing Budget?
The decision of how much money to spend on your marketing budget is a completely personal one. The standard for setting your budget is 10% to 20% of your gross revenue. In the real world it may not be so cut and dry, but it is a sound number to start with. Much will depend on your competition and the difficulty you have reaching the customers you want to work with.
Ok, great… but if you are just starting out what number do you base the percentage on? How much do you intend to earn during the coming year? Use that number for the foundation of your plan. And unfortunately, because you are just starting out, you will probably spend more on marketing to get the response you are looking for to be successful. Use the higher 20% number to start your promotional efforts.
So, if you intend to make $50,000 and use the 20% guideline, you will need approximately $833 per month for your marketing.
Here’s where it can pinch a little… do you have that amount of money in your bank account to invest every month? If not, go with what you have. You have to start somewhere!
Can you be successful with less? YES! It just takes more planning and a careful watch on your expenses. Build up your marketing dollars as you get sales, and NEVER overlook the need to invest in your marketing efforts.
Return to Marketing Schedule
Return from Marketing Budget to my Home Page