Fresh from filming a masterclass for a business channel, Franziska sheds some light to the question, “What marketing budget should I spend?” 

Highlights:
0:00 Introduction
0:25 The long answer
1:08 The short answer

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Franziska: Hello beautiful business owners, I just finished a shoot in a studio—all day we were filming a masterclass for a business channel. And one of the questions I got asked is, “What sort of marketing budget should I spend? How much money should I spend on my marketing?” Now, there’s a long and a short answer, the long answer is that it really depends on what your marketing is returning. So if let’s say you spend 1000 bucks on your marketing campaigns per week, or per month, and you’re returning 10,000, from a thousand bucks spent, that could potentially be a pretty good return depending on your margins. So then that means, well, if I spend 10,000 bucks will that return 100,000 bucks. So if that’s the case, of course, there shouldn’t really be a limitation on your budget. If your marketing is doing well. And the more you spend, the more you make, and the more profit you make, then you keep going. However, the short answer is, you can start off with some rough numbers, and percentages. So standard, roughly, we would say, for a business to business company, your budgets are usually a little bit smaller, it might be 3 to 5% of your revenue you spend on marketing, for a business to consumer company, especially product business, you might need to spend a little bit more to increase your conversion. So it might be more than seven to 10% of your revenue. So those are sort of standard numbers, depending on your business. I would say that because most marketing is very trackable. If your marketing is working, if your campaigns are doing well. Let’s say if you’re doing Google ads, and your Google ads are doing really well, I wouldn’t limit your budget unless of course, you can’t fulfill the orders. But if you have enough stock or if you have enough people on your team that can help you fulfill your purchases, then I would not limit your budget if it is making a positive return. So I hope this is helpful. And as always, if you have any questions related to marketing, we are here to help. That’s our entire mission here at Basic Bananas is to help business owners succeed by providing the best marketing education and mentoring on the planet. So any questions shoot them through, email us connect with us, and we can’t wait to hear from you. Until next time. Have an amazing afternoon.