Stop Guessing, Start Budgeting
Most businesses either spend too little on marketing (and wonder why they’re not growing) or spend without strategy (and wonder where the money went). Here’s how to calculate the right marketing budget for your business based on real data.
The Revenue Percentage Method
The U.S. Small Business Administration recommends 7-8% of gross revenue for marketing if you’re under $5M in revenue. For growth-focused companies, 10-15% is common. High-growth companies in competitive markets may invest 20%+.
Industry Benchmarks
- B2B companies: 6-12% of revenue
- B2C companies: 8-15% of revenue
- Professional services: 6-10%
- Healthcare: 5-10%
- E-commerce: 12-20%
- Technology/SaaS: 15-25%
Allocating Your Budget
A balanced allocation for most businesses: 35-40% paid advertising, 25-30% content and SEO, 15-20% social media, 10-15% email and automation, 5-10% tools and technology. Adjust based on what’s working and where your biggest opportunities lie.
The Growth Investment Framework
If you’re trying to grow aggressively, front-load your investment. Marketing compounds — the content you create today, the SEO you build today, and the brand awareness you generate today all pay dividends for months and years to come.
