Cost of Marketing: What Is the Average Budget?
As today’s savvy businesspeople know, to have a strong business people have to know who you are and what you offer. You need good marketing. The first step is a marketing budget to help you figure out practical steps to achieve those goals. But, how much should you spend?
Sales Renewal’s insight:
We agree, this is the best way to think of your marketing budget if you’re a small business:
“Allocating a specified percentage of sales revenue is one of the most popular methods for developing a marketing budget. The average allocation usually ranges between 9-12% of the annual budget, while the smallest businesses may go as low as 2%. … The main advantage to using a percentage of sales is that the marketing budget will increase, or decrease, with the sales revenue of the company. The marketing budget will never spin out of control and deplete sales revenue.”
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