[vc_row no_margin=”true” padding_top=”0px” padding_bottom=”0px” border=”none”][vc_column width=”1/1″][text_output]If you’ve read any of my posts in the past you may have noticed I can be a little sarcastic. I’m going to be particularly sarcastic in this post. At least I think I am, I’m feeling sarcastic!
I am going to keep this short. For a couple reasons, mostly because all the stuff that’s already been written before. I’m not writing any of it. I am searching the Internet. I searched for about 30 minutes.
Well, it all depends. It appears there are several ways to set budgets but I think a couple are better than the others.
Most folks agree it varies by industry and business size. It is also based on how much you want to grow, and how fast.
I do like this article from www.inc.com. How to Build Your Marketing Budget ((How to Build Your Marketing Budget)) because it’s short and easy to understand. I know you’re busy.
A marketing budget typically covers costs for advertising, promotion and public relations. Each amount varies based on the size of the business, its annual sales and how much the competition is advertising. Depending on the industry, [highlight type=”standard”]marketing budgets can range from as low as 1% of sales to over 30%. New companies may spend as much as 50% of sales for introductory marketing programs in the first year[/highlight]. Smaller business may just try to match the spending of their direct competitors.((Cost of Marketing: What Is the Average Budget? | LegalZoom.))
Okay, that second quote is a little vague. However, you can see a variance and what they should be based on.
You can stop reading right after this next sentence. For every million dollars of gross sales you should spend about $100,000 a year on marketing.
More info if you would like to keep researching. I am citing three articles for this article. You can go to those websites and read all the details if you like. Or, here’s a few more tidbits from those articles.
In addition to the “percentage of sales” method mentioned above here are a few more ways marketing budgets take shape.
Blank Slate: Just add it all up and pay for it. Who does this anymore?
Competitor Matching: Nothing wrong with this, especially if it works for you.
How Much Do We Have?: Sometimes we have to work this way because cash is limited or a budget was handed to us from someone else. Please be realistic and honest with your vendors. It will be to your advantage.((5 Guidelines for Establishing Your Marketing Budget – Maricich. links to a PDF.))[/text_output][accordion][accordion_item title=”Photo Credits”]Let’s commission this artist on your next project. See the photo here.[/accordion_item][/accordion][/vc_column][/vc_row][vc_row][vc_column width=”1/1″][vc_widget_sidebar sidebar_id=”ups-sidebar-keywords-for-hire”][/vc_column][/vc_row]