Let’s agree on 3 fundamental truths before we dive in:
- You need a marketing budget.
- Your marketing budget should be somewhere between 3–15% of topline revenue at your organization.
- You deserve to know how your marketing budget is going to be spent and what results you’ll get.
With these in mind, let’s turn our attention to that thing you actually hoped to learn when you clicked on this article.
Making your budget
Start here → Set your marketing budget at 3% of topline revenue and let’s work from there. If you have a percentage already outlined for your organization, feel free to use that instead.
1. Goals
Where are you now and where do you want to be in the future? If status quo is working well, keep your cruise control set at 3%. If new locations, new services, a new building, or 1,000+ new customers is where you want to end up, adjust the dial upward from where you’re at currently.
2. Channels
How wide is your audience pool? Is it everyone on earth, or are you trying to corner the market on women who own labradoodles and drive past your billboard on Interstate 80? Whatever the case may be, adjust your budget upward if you plan on engaging in multiple marketing channels or want to lean heavily into more cost-intensive marketing modalities such as video, direct mail, or Super Bowl commercials.
3. Current awareness
If you’re already a household name (in a good way), then keep up the great work, and keep that percentage where you have it in your mind. If you need more visibility and are trying to build a brand identity with your audience, prepare for some heavier initial investment to get a solid marketing and sales pipeline in place—this will require an additional 1–2% addition to your marketing budget.
4. Initiatives
What are you trying to grow this year? If it’s a copy/paste of last year, then your budget is probably good as is. If you’ve got new services coming down the pipeline, or you’re looking to invest in your website to create a more efficient process for you (and your audience), then slide your percentage upwards to accommodate it.
Need some guidance on your marketing budget?
We’ve worked with organizations across the spectrum of industries and sales modalities. We’ll shoot you straight on what we’ve seen that works, and what doesn’t.
Book a free Discovery Call with TwoTone and we’ll help you find the right budget for your unique situation and goals.
