{"id":879,"date":"2020-12-17T09:30:00","date_gmt":"2020-12-17T09:30:00","guid":{"rendered":"https:\/\/www.800.com\/blog\/?p=879"},"modified":"2024-03-01T12:50:50","modified_gmt":"2024-03-01T12:50:50","slug":"how-much-should-you-budget-on-marketing-for-your-business","status":"publish","type":"post","link":"https:\/\/www.800.com\/blog\/how-much-should-you-budget-on-marketing-for-your-business\/","title":{"rendered":"How Much Should You Budget on Marketing For Your Business?"},"content":{"rendered":"\n

Whether you\u2019re closing your business fiscal year or planning for the future, creating a marketing budget can be complex, but it doesn\u2019t have to break the bank. When considering how much your business should budget for marketing, the answer is, it depends.<\/p>\n\n\n\n

There\u2019s no hard rule to establishing marketing costs, but on average, most companies spend roughly 7 to 8% of their revenue on promoting services and products. Where you spend that money, however, is likely the more important question. While every business will establish a custom marketing budget for their team, some principles apply across the board.<\/p>\n\n\n\n

Why Do I Need A Marketing Budget?<\/h2>\n\n\n\n

A marketing budget<\/a> doesn’t just represent numbers on a spreadsheet. Creating a customized budget allows you to meet your yearly growth goals. Read on to learn about the top eight reasons for putting thought into your marketing budget.<\/p>\n\n\n\n

1. Stay on track financially.<\/h3>\n\n\n\n

Keep track of how much you spend on each marketing method when you create a budget. If you begin overspending in a particular month, you can reduce your projected spending for future weeks to stay on track with your overall budget.<\/p>\n\n\n\n

2. Keep cash in the right places.<\/h3>\n\n\n\n

A budget can help you manage your cash allocation to different marketing methods. You can track those methods to determine your return<\/a> on investment and shift the funds to a more effective method if needed.<\/p>\n\n\n\n

3. Set a marketing goal.<\/h3>\n\n\n\n

Establishing a budget will illustrate the results you can expect when you spend certain amounts of cash. Once you have realistic expectations of the results, you can determine whether you want to spend more or less of your revenue on marketing.<\/p>\n\n\n\n

4. Establish a sales cycle.<\/h3>\n\n\n\n

When your customers are exploring your brand, they typically go through four stages:<\/p>\n\n\n\n