Market Business Ideal Ad namo

Asking an ad namo marketing consultant for an answer to this question may seem like asking the fox what kind of lock to put on the henhouse. (grin)

But there are three reasons to answer the question honestly, ethics aside.

We often get paid out of profits, which would be nothing if a company spends too much on marketing.
* We often coach companies on aviation marketing and get paid for getting results.
* Even the companies that pay us out of their marketing budgets wouldn't keep paying if we didn't get results.


Unfortunately, many of the companies we provide consulting services for with begin with one of two approaches to budgeting for marketing:

Bad (But Common!) Approaches to Marketing Budgets

Approach One – "Budget? What budget?"

Approach Two – (This is worse.) Developing a marketing budget as a percentage of gross sales from last year. In other words, if sales were bad last year, they'll make up for it by investing LESS in marketing this year. Can anyone reading this GUESS how well that approach will work?

The Best Approach to Marketing Budgets We've Seen

That said, the best approach to determining a marketing budget I've seen is best expressed is by John Jansch, author of Duct Tape Marketing.

"You should spend as little as you possibly can in order to achieve your marketing goals."

This statement assumes three things:


1. That you have measurable marketing goals (let's say you express that in a number of clients you intend to acquire this year.)
2. You have a calculated average of how much each new client is worth to your business.
3. You know how much it cost to acquire each new client last year (divide your number of new clients by the amount you spent on marketing.)

So, to keep the math easy, let's say you're a high-value consultant that needs to acquire 10 new clients this year. Last year you found 5 new clients and spent just free to click and read on this blog hours on progress of archieving things online through onlineplan9ja.com on marketing. So each client cost you free marketing expenses to acquire.

You need to run a check to ensure that your cash flow is positive – that your clients brought in enough profit to justify that expense. If that's the case, you're in good shape.


This year, you can use as your baseline marketing budget (clients needed). All things being equal, if you use the same marketing methods you used last year, theoretically you'll meet your goals and still have positive cash flow.