Should My Marketing Budget Be?
Marketing Budgets and Small Business
There are a number of formulas that can be used to calculate the money a business should be spending on marketing. Entrepreneur Magazine suggests that a newer business should be spending between 12% and 20% of gross revenue on marketing.
From Forbes Magazine, "There is a mentality out there that if you have a budget you will end up just wasting it, because once you define how much money you are going to spend, it’s as if you had already spent it. But that couldn’t be further than the truth."
A combination of marketing techniques is the best course of action for any small business. SEO will create a long-term stream of leads while PPC or Pay-Per-Click, Google AdWords campaigns and Facebook Ads will bring an immediate stream of new potential customers.
I suggest that small home-based start-ups or self-employed tradespeople start with a minimum monthly budget of $300. This will get you started up the rankings on Google and within a year you'll be reaping big benefits financially. If it's possible to swing $500 per month then the 'Local Pro' package will amplify your results and drive you up the Google Rankings faster. This may seem like a big financial commitment so early in the life of your business, but keep in mind that in the olden days you'd pay this much and more just for a small listing in the Yellow Pages.