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How Much You Should be Spending on Marketing

Marketing budgets are based on seasons, level of business, and industry. 

There is no exact number I can give you on what you should be spending on marketing. There are however 4 factors that we are going to use to consider your budget based on where you are at. 

  • Starting
  • Struggling
  • Building
  • Maintaining

Starting?

The starting phase is the hardest, because this is where you are typically in no position to spend money on marketing, yet this is when you need it the most. You are unknown, you haven’t built trust, and you need to focus on bringing customers in.

You need to get all social media platforms up and rolling, get Ads, and establish dominance online. You may be spending 30%-50% of your revenue starting out to launch this business. It’s a reality you have to accept to get people in the door the first time. 

Once you get them in the door, you need to have strong customer service in place and a killer follow up system!

  • Email Service check
  • Review collection
  • Promotions
  • Social Media Push

Struggling

You’re struggling in your business right now. It may be a tough season exactly like what we are going through with Covid-19.

Ask yourself

  • Do you have Bad reviews online?
  • How is your customer service?
  • Do you have a follow up sequence to bring people back?
  • Are you spending money on marketing?

One thing we have seen during the 2020 pandemic is businesses pulling back on their marketing instead of pivoting their business marketing efforts for a new market.

Building?

Are you happy with where you are at in your business, but looking for more growth?

Take time to analyze your marketing efforts, and see where you can improve to bring more people in the door. Remember spending money on marketing is not scary when you see returns, and new customers seeing, hearing, and using your business.

We see businesses who are complacent and think spending money on marketing is scary, or not necessary. They are missing out on a lot of customers and it’s keeping their business very stagnant.

In this phase you should be spending 10-15% of  your revenue on marketing each month.

  • What is working well?
  • What do you need to start?
  • What new Digital Marketing avenue should you try?
  • Is it time to outsouce?

Remember you may be in this building phase for 1-4 month before you can move into maintaining.

Are you maintaining?

Let’s say you run a service based business and you are fully booked, and your goal is not to expand your location, or team. I am thinking most of you won’t be in this position. There are typically always appointments, cancellations and slots to be filled. 

Even if you are in more of a maintaining phase. There is still work to be done to keep current customer, and encourage them to use your services more often.

That is why we recommend

  • Cost-Effective Brand Awareness Facebook Ads
  • Online follow up protocol
  • Email Marketing
  • Active Social Media Platforms

In this phase you should be spending 7-10% on marketing depending on your income and business. If your monthly expenses are high this may bring down your marketing spend. If you have a low expense business you may even look to spend more 10-15%.

Next week we are talking about when is it time to outsource, and what learning to put more value on our time.

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Client Love

My client's Instagram went from about 500 followers (retained over the last 2yrs, on their own) up to 5,000 followers...

Desiree

Violet Coast Media
5
2016-05-03T18:05:39+00:00

Desiree

My client's Instagram went from about 500 followers (retained over the last 2yrs, on their own) up to 5,000 followers in only a couple of months! The Follower Engagements more than quadrupled and the website/store saw a large increase in traffic with a solid conversion rate.
Bailey is extremely professional and personable. She created original and authentic social media, that the athletes and families loved and...

Bryan

Violet Coast Media
5
2016-05-03T18:07:52+00:00

Bryan

Bailey is extremely professional and personable. She created original and authentic social media, that the athletes and families loved and can relate to. Overall we had a great experience with her.
Bailey is highly attentive in developing Marketing campaigns. She takes initiative and continually suggests new ideas to further campaigns and...

Asha

Violet Coast Media
5
2016-05-03T18:24:44+00:00

Asha

Bailey is highly attentive in developing Marketing campaigns. She takes initiative and continually suggests new ideas to further campaigns and reach new demographics.
5
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Violet Coast Media