How much should you be spending on your marketing?
This is a question I get asked a lot. Obviously, there are a range of answers, all of which depend on your business maturity, customers, products, cash flow and growth objectives.
My rules of thumb:
- Want to grow aggressively? Spend 10-15% of revenue. That, spent well, will typically fuel growth and provide significant return over time
- Already have good organic growth and want to increase their reach OR want to maintain market share in a competitive market? Spend 8-10% of revenue
- Need to maintain market share? Spend at least 5% of revenue on marketing/advertising
Your objectives and your budget are two critical inputs into your marketing plan. Remember, marketing shouldn’t be looked upon as a cost to the business, but as an investment into the business.
If you’d like help designing your marketing plan to meet your objectives within your budget, get in touch with Atomic Tangerine :)
Founder & Growth Catalyst