How much should I budget for marketing?
Ron Cunningham from Ads To Grow Consulting
If you have an office or storefront, how much would you spend on a sign? How much more would you spend on a good location? How much money do you have? If you can answer these questions, you will have a better understanding of how much you should spend on online and offline marketing.
The purpose of marketing s to get people in your store (or to call or visit or buy from you).
If you think a cardboard sign would do the trick, then you set up your “garage sale”. If you think you need a lighted sign the size of the front of your business, people won’t be able to find the door.
An online example is Pay per Click. If you allocate $20 per month for Pay per Click, you probably will spend that and get zero results. If you are a local business in a small marketing area and spend $10,000 per month in PPC, you will likely be out of business when the money runs out.
The best answer is to sit down with a consultant, ask for the best plan available for your type of business and marketing area and see what will give you the most return on investment. Then you look at your bank account and adjust your plan to fit that.
Frankly, if you don’t have enough to do an adequate job of getting customers/clients, you probably need to look at your financing and ability to start or continue the business.
After 20 years in marketing, I have found that businesses tend to spend way too much or way too little because of fear of failure and not knowing what is appropriate for their businesses.
Find someone who will ask the right questions and give you the educated answers for your specific circumstances. Then decide if you trust them to partner with you.