Marketing ROI – How Much Should I Spend on Marketing
Here is the way a lot of small business marketing happens:
- At some point, you decide you need to do some marketing.
- You look at how much you have to spend.
- Then you look at all your marketing options and figure out how you are going to spend that limited budget.
- Hope and prayer.
- Look back and decide if the juice was worth the squeeze.
There is one key step that needs to happen before step 2. (I would argue for trying these free marketing tips before step 2 as well.) You need to have done your research on what your average profit per customer/job is. And by average, I don’t mean through 5 jobs. You need a good chunk of data to sift through so you have an accurate depiction.
If you know what your average profit per job is, then it stands to reason that you could pay up to that in marketing dollars to acquire a new job. Any more than that, and it is a losing proposition. Not sure all the things you need to analyze or how to do an accurate calculation? Don’t be afraid to hire someone like Windridge Web Design or Trailblazer Research to help.
Once you know your key numbers, figuring out the rest of your budget is much easier and can lead to higher profitability.