Simple formula to determine ideal marketing budget online.
What is your desired increase in revenue for the next 12 months?
$500,000.
What does it cost to acquire one customer?
Most companies spend anywhere from $25 – $300 per customer.
Take your revenue goes and divide by cost to acquire one customer. This will be your marketing budget.
Or another, easier way to determine the best marketing budget is to do the following:
10% Percent of Gross Revenue is a good starting point for a marketing budget for most companies.