How much should I spend on Marketing? It is one of the most asked questions we face.
A good Rule of Thumb is to spend 5% to 10% of your total revenue on Marketing. 5% is considered to be just enough to keep your market share, if you would like to grow your business you should really aim to spend closer to 10%. This is not true for all business models. But it is a good reference. Some businesses spend up to 30% or even more on marketing.
Marketing plays a crucial role in every day business. Do not just dump 5% or 10% of your total revenue on random marketing, make sure you get good return on your investment. Ask your marketing team / agency / freelancer for frequent statistics. Total Reach is not all you are aiming for. You want to make sure you are reaching your desired audience.
Picture this, you own a company that sells educational tablets, you get advertising reach of 4000 people, of those 4000 people 50% don’t have children… I do not think I need to go any further, you are wasting money.
PLEASE TAKE NOTE: Advertising is a part of Marketing, it is not Marketing itself. Marketing is about your Market and your position in that specific market.
More about Marketing in another blog post.
Keep your business healthy.