Clients ask us, “What should I spend on branding and marketing?” It’s a common question partly because different agencies charge wildly different fees for what appear to be similar services. But it’s important to understand what services you need and how to budget for them.
First, remember that in marketing, as in every area of life, “You reap what you sow.” Whittle your budgets down to the bare minimum, and you can expect the same in your sales results.
Keep these three things in mind:
- Successful businesses typically have marketing budgets equal to 5% to 25% of their past or target revenue, depending on their goals.
- Maintaining your current market position typically requires “marketing spend” of 5% to 10% of revenue.
- Gaining market share generally takes 15% to 25% of revenue.
As for branding budgets, they vary widely depending on your goals. Are you just looking to get from here to there in an economical Toyota Camry, or do you want to turn heads in a Maserati?
The best way to budget for marketing or branding projects is to request a quote. A quote doesn’t obligate you to work with an agency, and at the very least, you gain knowledge about what it really takes to accomplish your current marketing goals.
Schedule an appointment to get the information you need to promote your business effectively.