How much should I allocate towards marketing?
I often get asked this question by small business owners. In my opinion there is no exact amount that you should spend, but I think its important to create a marketing budget and allocate a specific amount towards marketing each month.
A good starting point
I would suggest you put aside somewhere between 5% – 15% of your gross annual sales towards marketing. This is not based on any scientific study I just believe those numbers are easy to work with and it allows most small business owners enough flexibility to create a budget they can live with.
Check out this example
Let’s say in 2014 you grossed $120,000 and you decide in 2015 its time to start marketing. Your goal is to allocate 10% of your 2014 gross sales towards marketing. In this example you would put aside $12,000 a year or $1,000 a month. This simplifies your marketing budget and you know in advance how much you need to spend each month.
A specific amount each month
Some business owners may want to set aside a specific amount each month. For example, you may feel more comfortable just putting aside $400 a month. I would suggest that you start out with an amount you feel comfortable with and perhaps limit your budget to no more that $500 a month. At least until you see what is and what is not working.
Online marketing has made it a little easier
Social media platforms such as Facebook, Twitter & Instagram has made it much easier to communicate with your “followers” online. However, marketing your business online and trying to reach a larger audience on lets say Facebook or Google will require you to establish a budget. They have created what is called a “pay to play” system, so if you want to “market” your business online you must pay. Before you begin, speak to someone in your marketing department or hire a professional to help with you with your campaign.
Seven touch points to make a sale
A lot of people think that if they spend money on marketing they should see an immediate return on their investment (ROI). But this is often not the case. Marketing requires consistency and it usually takes “7 touch points to make a sale”. In other words you will have to establish a relationship with people before they become a client or customer.
To learn more about marketing
Please subscribe to our blog by visiting our website at www.brianscottdigital.com. Each week we will provide tips and strategies via blog articles, videos, podcasts, tutorials, etc. If you would like to discuss your digital marketing needs such as web design, brand building or your marketing strategy simply contact us or call us at 404-917-3790.