{"id":526,"date":"2019-11-01T08:32:19","date_gmt":"2019-11-01T08:32:19","guid":{"rendered":"https:\/\/www.golevo.com\/blog\/?p=526"},"modified":"2026-04-29T08:01:16","modified_gmt":"2026-04-29T08:01:16","slug":"five-tips-to-set-a-marketing-budget","status":"publish","type":"post","link":"https:\/\/designawebsite.co.in\/demo\/golevo\/blog\/five-tips-to-set-a-marketing-budget\/","title":{"rendered":"“How much should I spend on marketing?” Five tips to get the most bang for your marketing buck."},"content":{"rendered":"

\"How<\/p>\n

Marketing is one of the most important things your business can do. Sure, as a full-service marketing agency, you\u2019d expect us to say that, but it\u2019s absolutely true!<\/p>\n

After all, say you make the greatest product or provide the best service. If no one knows about it, no one will buy it. Even if it\u2019s the best thing since Snapchat.<\/p>\n

So, now that we\u2019ve all agreed that it\u2019s essential, the big question is\u2013how much should I spend on marketing?<\/p>\n

We have this conversation with clients all the time. With literally hundreds of marketing tools, tactics, media buys, and agencies out there, it can be overwhelming to figure out how much your company should spend, and which will give you the most ROI.<\/p>\n

Over the years we\u2019ve seen many marketing gimmicks come and go and we\u2019ve seen what works, and what doesn\u2019t. So, here are our top five tips to get the most bang for your marketing buck.<\/p>\n

\"How<\/p>\n

Tip #1 \u2014 Change the way you think about your budget.<\/strong><\/p>\n

Succeeding in marketing starts with your mindset. No, this isn\u2019t some \u201cjust think positive\u201d, self-help advice. It\u2019s looking at marketing as a benefit, not a burden, to your bottom line. In other words, marketing isn\u2019t a necessary evil; it\u2019s a necessary good!<\/p>\n

So let\u2019s start here: you\u2019re not spending<\/em> money on marketing, you\u2019re investing<\/em> in marketing. The distinction is important. For example, you probably invest a certain amount of your paycheck into retirement in the hopes of a return-on-investment. Marketing is the same way; you\u2019re investing a certain amount of your business\u2019 revenue in order to increase your business\u2019 profits (i.e. your return-on-investment).<\/p>\n

So how much should you invest? We\u2019re glad you asked!<\/p>\n

Tip #2 \u2014 Follow the 5% Rule<\/strong><\/p>\n

You should spend at least<\/em> 5% of your sales revenue on marketing. Yep, it\u2019s that simple. If you remember just one thing from this article, it\u2019s that.<\/p>\n

Does 5% seem high? Actually, it\u2019s quite reasonable. The U.S. Small Business Administration recommends spending up to 8% of your gross revenue for marketing if you\u2019re doing less than $5 million a year in sales. If you\u2019re a new company, some analysts even say you should spend up to 20% on marketing! Established companies have it a little easier, but are still encouraged to spend 8-12%.<\/p>\n

So you\u2019re probably thinking: \u201cWait, 5% seems like a lot, but is it actually not enough?!\u201d It\u2019s important to remember “the 5% rule”<\/strong> is more of a guideline, and applies to most years, not all. You should absolutely make marketing a top priority and if you feel like you can invest more, you should. But your marketing budget should always be at least 5%.<\/p>\n

We like 5% as a baseline because it gives you a nice, solid foundation to build on. It also gives you enough flexibility to see what marketing executions work best for your business (more on that later). There\u2019s nothing worse than spending too much on a marketing execution that isn\u2019t working. Which leads us to our next tip.<\/p>\n

Tip #3 \u2014 It\u2019s not just how much you spend, but how you spend it.<\/strong><\/p>\n

If you\u2019re a local coffee shop spending 5% of your revenue on a billboard campaign in a completely different state, that\u2019s not a good strategy. Most marketing mistakes aren\u2019t so obvious, which is why it\u2019s important to consult with experts<\/a><\/strong>.<\/p>\n

How you market is unique to your business, but your marketing budget should always include the following four things:<\/p>\n