How Much You Should You Spend On Marketing?

Discussion in 'General Marketing' started by Avesel, Mar 3, 2011.

  1. #1
    *how much should you spend on marketing*

    What is a good percentage relative to your revenue to spend on marketing? When do you start thinking you are spending too much?
     
    Last edited: Mar 3, 2011
    Avesel, Mar 3, 2011 IP
  2. element01

    element01 Active Member

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    #2
    Now that is a tricky one. I hate it when people say this but:

    There is no one answer!

    I would suggest setting a target and use the appropriate amount of marketing to reach that target.

    For example if I have just launched a website I may want to spend 10x the revenue on marketing.

    If I have an established website I may only spend a fraction of my revenue, just to meet my targets.

    When you don't meet your targets you are likely to be spending too much, or too little on marketing (or just not marketing correctly at all!)

    Set yourself a target and a time frame and you are good to go ;)
     
    element01, Mar 3, 2011 IP
  3. abelchua

    abelchua Peon

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    #3
    It will all depend on yourself. Usually, we'll use around 50% of our profits to put it back in. Sometimes, you gotta invest a little before you can get returns. There's a method to get Facebook ads for free though.
     
    abelchua, Mar 3, 2011 IP
  4. Steve Marino

    Steve Marino Peon

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    #4
    How long is a piece of string is a similar question. It depends mostly on what type of site it is, the revenues you have, the SEO work you have done and what proportion of the marketing you are willing to do yourself.
     
    Steve Marino, Mar 3, 2011 IP
  5. Oceanus

    Oceanus Member

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    #5
    How do you get Facebook ads for free?
     
    Oceanus, Mar 4, 2011 IP
  6. wristbandsp

    wristbandsp Peon

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    #6
    Hi all,
    Marketing is nothing but to get eye ball,so that people can remember you! You can do disruptive marketing for impulse effect.But do care of blowing money without any result.Hence ROI is important......
     
    wristbandsp, Mar 4, 2011 IP
  7. ForgottenCreature

    ForgottenCreature Notable Member

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    #7
    It all depends - does spending money revert to more income being made? That's what you need to think about
     
    ForgottenCreature, Mar 4, 2011 IP
  8. Beatriz Cruz

    Beatriz Cruz Guest

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    #8
    Dont spend the money that you dont afford to lose. Of course it is important that you weigh the cost and profits in your online venture.
     
    Beatriz Cruz, Mar 5, 2011 IP
  9. 2Girls1Cup.info

    2Girls1Cup.info Peon

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    #9
    Limit yourself on spending, try different methods. Just dont buy traffic all the time, cause when its gone you will be no better off.
     
    2Girls1Cup.info, Mar 5, 2011 IP
  10. Sachin Kumar

    Sachin Kumar Peon

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    #10
    There is no any limit for this but before making decide you should make one structure how you have to expend and in which area will better.
     
    Sachin Kumar, Mar 5, 2011 IP
  11. kellyjoel

    kellyjoel Peon

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    #11
    I think, no one can suggest accurate answer for this.It's all depends on the strategies & planning you made to do so.budget varies with the circumstances.
     
    kellyjoel, Mar 5, 2011 IP
  12. johnnypr

    johnnypr Greenhorn

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    #12
    Theres no real right or wrong answer.

    New people starting out will probably spend more than they make for a few months until they have enough content out there to make a profit.
     
    johnnypr, Mar 5, 2011 IP
  13. DanAbbamont

    DanAbbamont Guest

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    #13
    If you're starting on a new project, enough to get some data and make conclusions about whether or not you should continue. If you're consistently producing an ROI on something, scale up as much as you can.
     
    DanAbbamont, Mar 6, 2011 IP
  14. BryanGFT

    BryanGFT Peon

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    #14
    As long as you make more then you spend, it's fine. Actually, it's perfect :)
     
    BryanGFT, Mar 6, 2011 IP
  15. forumweaver

    forumweaver Peon

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    #15
    It really depends on many factors. What stage is your business in?

    For example if you have a successful marketing place that brings consistent success then if you souble what you are spending you should be doublng your profit.

    In that case a good question to ask yourself is if I spend more will it result in more profit?
     
    forumweaver, Mar 6, 2011 IP
  16. Justin_Dupre

    Justin_Dupre Peon

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    #16
    Yep all depend on the factors, but for sure you need to use money to make money. As long as I get full ROI and 30-40% profit i'm game.
     
    Justin_Dupre, Mar 6, 2011 IP
  17. Gyanguru Online

    Gyanguru Online Peon

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    #17
    I think at initial stage a major portion of your budget should have provision for marketing expenses, but keep in mind that you have enough funds to manage and maintain your daily operations, reason if you fail to deliver what you have advertised it will automatically convert into something else.
     
    Gyanguru Online, Mar 6, 2011 IP
  18. markgmktg

    markgmktg Peon

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    #18
    That all depends on you. Always try improving your ROI, but as long as you're making a good profit then keep on spending money and keep on profiting.
    For example, I consider a 50% ROI to be low. But in some cases that wouldn't be low at all. For example if I spend $1,000,000.00 in a month on advertising and make a 50% ROI then this means I just made a profit of $500,000 meaning I end up the month with $1,500,000.00 in my pockets.
    Really as long as you're making a profit, keep on spending. But always try to improve your ROI.
     
    markgmktg, Mar 7, 2011 IP
  19. east2westcoast

    east2westcoast Greenhorn

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    #19
    try to put in as much as possible
     
    east2westcoast, Mar 8, 2011 IP
  20. saqib889

    saqib889 Peon

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    #20
    Yes there is simply no answer to this, you can spend as much you want, simply unlimited.
     
    saqib889, Mar 8, 2011 IP