How Much Should You Spend on Marketing? Here's the Smart Way to Budget
Whether you’re running a lean startup or scaling a brand, the same question always comes up:
“How much should I spend on marketing?”
There’s no one-size-fits-all answer. But there are principles and benchmarks that can help you make a smart, confident decision — instead of guessing or overspending.
Here’s a breakdown that works across industries, with real numbers and strategy behind it.
First: Start with Your Business Stage
Early-stage / bootstrapped?
Focus on foundational marketing — branding, website, SEO basics, and lightweight content. Spend less, but spend smart.
Growing business?
Allocate more toward acquisition — think performance ads, email flows, and retention. This is where your marketing starts turning into ROI.
Established brand?
Double down on consistency, optimization, and storytelling. That means content systems, multi-channel strategy, and brand reinforcement.
So… What’s the Actual %?
A commonly used benchmark: Business Type and the Recommended % of Revenue for Marketing
Startup (Pre-revenue or <$500K) : 5%–10% of projected revenue
Growing ($500K–$5M) : 7%–12% of gross revenue
Scaling ($5M+) : 10%–15%, with split across brand + performance
If you’re product-based or e-commerce, that number skews higher.
If you’re B2B with high deal value, you may get more done with a smaller %, but you'll spend more on strategic channels (like SEO, funnels, and ABM).
How to Allocate That Budget
Let’s say you have $3,000/month to work with. Here’s a sample allocation for a product-based brand:
30% – Paid Ads (FB/IG, Google, Retargeting)
25% – Content Creation (photo/video, copywriting, blog, email)
20% – SEO & Website Optimization
15% – Tools & Platforms (email marketing, analytics, CRM)
10% – Strategy & Consulting (someone to tie it all together)
If your marketing budget is lower, focus first on website, SEO, and one core channel that fits your audience (like Instagram or email).
The Real Question: What's the ROI?
Don’t spend based on a random percentage. Spend based on what you want your marketing to do.
Ask yourself:
What’s the value of a new customer?
How much traffic do I need to reach that customer?
Can my website or funnel convert that traffic efficiently?
What’s the cost of not doing this — missed revenue, weak positioning, low visibility?
Marketing is not just a cost center — it’s a revenue engine. But only when done intentionally.
Common Mistakes to Avoid
“We’ll just do it all ourselves.”
Time isn’t free — and in-house bottlenecks slow growth.“We’ll figure it out later.”
Without strategy, even a $10K ad budget can go nowhere.“We’ll do everything, everywhere.”
Better to go deep in one or two channels that convert, than spray and pray across ten.
Smart Marketing Spend = Clarity + Control
When you treat marketing like an investment — not a gamble — you make better decisions, see stronger ROI, and actually enjoy the process.
You don’t need a massive budget. You need a clear plan, the right help, and tools that scale as you grow.
Need help planning your marketing spend?
If you’re unsure how to split your budget or what channels make the most sense for your stage — I offer strategy consults and done-for-you services. Let’s make your marketing work smarter, not just harder.
