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How Much Should You Pay For Marketing?

How Much Should You Pay For Marketing?

How Much Should You Pay For Marketing?

Every business should be spending 20–30% of NET profits back into various marketing efforts. After
the bills and employees are paid; 20-30% of what remains should be split into various
marketing techniques. The objective is to spend 30% of your NET profits to attract new customers, while
focusing on up selling your current clients with various techniques.

(We will discuss techniques in later post.)

Are We Charging Enough For Our Products or Services?

Online marketing is controlled spending and very transparent, you can assess what your
industry is paying with various tools online like Google’s Keyword tools, SpyFu & SEM Rush.
Google’s Keyword tools allows you to see what your industry is paying per click (PPC) and you
can multiply that cost by roughly 10-20 clicks to estimate your customer acquisition rate (CPA).
With this method, you can  make ongoing adjustments to improve your CPA and improve your

After obtaining your industry’s spending trends you can weigh that amount against what a
customer is worth to you. You will know before you begin which techniques will allow you to
stay within budget and realize what you should or shouldn’t being paying for marketing.


Contact us for a free analysis and expert advice on moving forward.




Google Auctions

Hal Varian, Google’s chief economist, explains how the AdWords auction works.