Marketing spend calculator – How much should you be spending on your marketing?

One of the most common questions I get asked is, ‘what budget should I allow for marketing?’ People often ask whether it should be a percentage of turnover…

So, to answer how much you could realistically be spending on marketing activities and work out what your marketing budget should be there are two really important answers you need first of all:

1. What is the lifetime value of your ideal customer?
2. What is the cost of acquiring that ideal customer?

To help you think about these numbers and work out your marketing spend I have a marketing spend calculator which you can request free of charge.

This will help you to think about those numbers and make a calculation of your marketing spend so you can attract the right number of customers needed for your business to provide the lifestyle you desire and deserve.

Stopping advertising to save money is like stopping your watch to save time

Henry Ford said this, and I believe he was right! To cease advertising, or marketing spend would damage your brand, and here’s why…

• You need a consistent presence online, in print or in person to ensure that you remain front of mind when the need for your service or product arises
• A consistent message, conveying your experience, expertise and authority establishes trust with your customer and search engines alike, making you easier to find
• Sharing that message with consistency positions you or your brand as the go-to expert in your field
• And to make a drastic change in your budget such as the cessation of a major expense like marketing can really skew your figures at year end when it comes to assessing return on investment.

Can you safely change your marketing spend?

There are two main reasons why a business changes their marketing spending habits.

1. They’re so busy they can’t take on new work
2. They’re not busy enough and they can’t afford it.

In these two scenarios, I wouldn’t recommend changing the amount you spend on marketing, but rather changing the focus of your marketing. Instead of reacting to being busy by no longer writing blogs, consider writing case studies of successes. Rather than no longer networking, consider going along ready to support others. Rather than stopping your social media, fill it with testimonials and great stories.

TIP: Never tell people you’re too busy! Just manage their expectations or consider growing your team…

And if you aren’t busy enough, you may consider changing the message focus to one of advertorial, using a strong demonstration of benefits to working with you, and providing solutions.

As a huge advocate of networking and marketing myself, I would be happy to have a conversation with you about how you can manage your marketing spend.

In the meantime, that marketing spend calculator is still available, free of charge to help you work out your budget and get a workable plan in place.