Is there a formula to tell you what should be your marketing budget? Example: Say you have a web business that brings in $50,000 a month. How much of that or what percentage should go towards advertising? Is there a formula for this!
This all varies on your bankroll and experience in what your are doing. If your new to the internet marketing world I wouldn't suggest spending more then a few hundred dollars. When you create a formula that is a winning formula then you start to upscale the budget and keep making money. Its all about testing and running campaigns that work. If your run 10 campaigns and only 7 of them are profitable then you cut the fat. To round things up you have to test in order to find a formula that works.
Tough to say, but you just need to calculate all your direct/ indirect expenses to get this $50,000 before reaching the ad spend calculations. You need to calculate the all your expenses and cost of acquisition (customer). After calculating the cost of acquisition, you need to decide how many customers you need per month and multiply that number with COA. Initially your spend could be higher than earnings but then it'll be gradually reduced. Hope this helps Cheers!
I am completely agree with OfficialRTS. Don't keep all your eggs in one basket. Diversify the things .....cut the things that are not working and you got your formula
It all depends on your market needs but if i were you i would put back 10% of my total earnings as a marketing budget. Marketing is business, without it there's no business.I would spend as much as can provided the business is viable enough. Good luck!
I honestly think there isn't any specific formula of how much a business should invest into marketing. You're going to have to decide how much percentage will go for it. Just make sure your marketing expenses doesn't go above what you are actually making.
Well my whole business is based on marketing through PPC so for me it would be a lot of it I would re-invest to find new keywords that can bring me more passive income. Of course it varies a lot from different types of business: a web design company probably want to spend just what they need to fill up their time with clients completely.