If you are a small business owner looking to grow your business, you understand marketing is an important tool in your success. If that applies to you, then you have probably asked yourself how much should I spend on marketing? That is a really great question and I will provide you with an answer that applies directly to you.
US Small Business Administration recommends you allocate 7-8% of your company’s gross revenue toward marketing. I personally recommend 10%, but it MUST be allocated strategically with data to support the decision. There is a reason to my madness. The reason I stress that is because I have met many business owners who do not track ROI (return on investment) for the marketing and advertising services they use. After running the marketing services, revenue will increase and they will chalk it up to their marketing efforts. As that statement may be accurate, how much or which marketing channel generated the most sales?
As a business owner it would be great to know the social media ads you ran produced 65% more sales than the radio ad. Do you see how valuable that knowledge could be to you? Of course, and your next step would be to reallocate some of your radio spend to your social ads budget. By doing so, you’ll see a larger increase in sales. That is called scale. If you can determine what produces well for you, you are able to increase the budget and scale the results for the best ROI.
This simple strategy of using data to determine budget allocation is just one of the resources that give large corporations advantages in the marketplace. Use this strategy in your business and see how revenue you can generate.
I hope this answers your question and you find value in the recommendation provided.
If you need clarity or have any other questions, feel free to give us a call at 410.401.9919 or fill out our free website audit form to discuss what issues you have with your website so you can improve sales today!
About 6Ninety9 Web Design
6Ninety9 Web Design is a rapidly growing website design startup headquartered in Baltimore, MD. 6Ninety9 has a great portfolio of small businesses and non-profits across Maryland and beyond. Recently, 6Ninety9 has opened another office in Wilmington, DE.