Have you ever experienced sticker shock when trying to build your marketing budget? You have probably had brilliant ideas that you rushed to your team to talk about knowing that this idea will take your company to higher and higher levels. Then you get slapped in the face by reality when your team tells you that your idea will cost more than landing on the moon.
When mapping out your company’s budget, what is the right amount to allocate to marketing? The SBA (Small Business Administration) recommends that companies under $5 million in annual revenue dedicate 7-8% to marketing. But larger companies or companies in certain kinds of industries need to go higher to as much as 20%. The main differentiator comes depending on if you sell to consumers (B2C) or other businesses (B2B) where the SBA recommends higher marketing spends for consumer businesses which could be as high as 35% of their revenue.
So how do you take what you spend in marketing and get the best growth possible? There are lots of ways which we will go through with upcoming posts. There are so many ways that you can really get new and happy customers that cost little to nothing! So stay tuned!