Episode #944
What Percentage of Your Revenue Should You Allocate to Marketing? 
March 02, 2019

In episode #944, we discuss what percentage of your revenue should be allocated to marketing. Tune in to hear how much you should be spending.

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TIME-STAMPED SHOW NOTES:

  • [00:27] Today’s Topic: What Percentage of Your Revenue Should You Allocate to Marketing?
  • [00:45] We think budgets are useless.
  • [00:55] Even Fortune 1000 companies agree with us.
  • [01:15] If you could spend money and it’s profitable, why wouldn’t you keep scaling up?
  • [01:30] Budgets should be based on profitability.
  • [02:10] There’s nothing wrong with losing money on the front end.
  • [02:35] If you have to have a percentage, most people would say 15% (or somewhere in that range).
  • [02:55] Neil would start with as little at $100-1000.
  • [03:47] If you have a service business, the more customers you add, the worse the service gets. It’s different when you have a product.
  • [04:08] Focus on getting the ratio correct.
  • [04:10] That’s all for today!
  • [04:13] We hit our goal of 1 Million downloads! So, we will be throwing a free event in Los Angeles. Check out this website if you would like to attend. Remember: we are capping the event at 500 people, so sign up now, if you’re interested!

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