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How Much of My Budget Should be Spent on Marketing?

July 26, 2023/Casey Fuerst

As a coach or consultant, you know you need marketing, and have quickly realized that the word ‘marketing’ by itself is confusing, let alone getting a straight answer on how much should be spent on marketing and where to spend it. Welcome to the thrilling world of marketing, where creativity meets strategy, and the fierce competition to earn your business never ceases. As you venture into this wild realm, we want to help you answer the question, “How much of my budget should I spend on marketing?”

We are going to do our best to answer that question and further, how to spend it, in this article. Warning— there is NOT a one-size-fits-all answer. But, we’ll be as straightforward as possible.

Finding Your Marketing Sweet Spot

Determining the right marketing budget requires a balance between ambition and caution. Your level of risk tolerance will drive where you land. Deloitte reports that the average B2B company will spend 13.9% of their budget on marketing in 2023. That’s up 3.9% from the previous two years.

Two graphs depicting tenand twenty percent with the words Steady and growth over them respectively. How Much of My Budget Should be Spent on Marketing?

As a general rule, we typically recommend spending 10% to hold steady with your business and up to 20% for aggressive growth.

While we start by recommending a percentage of your revenue, there’s no one-size-fits-all approach. Consider these factors:

Your Business Stage

If you’re a fresh-faced coach or consultant seeking to carve out space for yourself in the overcrowded market, be prepared to invest a higher percentage of your budget in marketing efforts. Established gurus, on the other hand, can get away with allocating a smaller chunk, as their brand recognition and client referrals already lay a solid foundation.

Industry Norms

Research your industry’s marketing benchmarks, but don’t be a sheep blindly following the flock. As we said earlier, the industry average in 2023 is 13.9%. You should stand out by investing in innovative and unconventional strategies that align with your brand’s personality.

Your Growth Goals

Crank up the volume on your marketing spend if your aim is rapid expansion and conquest of new markets. Remember – you have to spend money to make money. Of course, you should tread lightly if you’re content with a slow and steady approach.

Experimentation Allowance

Effective marketing often involves trial and error. Leave room in your budget to test different channels and strategies. Failures may happen, but they’ll pave the way for successes.

Marketing isn’t black and white. You can’t just flip a switch and the business pours in. If it were that easy, we wouldn’t need this article. Listen to your marketing gurus and know that not everything is going to produce the same results.

Where to Channel Your Marketing Moolah

Now that we’ve got a rough estimate for your marketing budget, the next big question arises: where should the coins land? Here’s a breakdown of essential marketing channels to consider.

Branding

In the beginning, your brand presence (logo, colors, tone of voice) is what you are known for. As you develop and deliver your content, your brand presence is just the visual indicator that you are going to share something they want to pay attention to. Keep it simple and clean. Invest in a pro to help you get this right!

Messaging

It’s the foundation of all your marketing and you need to get this done well. Invest in a StoryBrand Guide to help you nail your messaging. NOTE: Messaging isn’t like a logo – it’s not set-it-and-forget-it. It’s a lot of trial and error and tweaking to get it right and keep it there.

Learn more about our Messaging Services

Website

Your digital presence is the epicenter of your brand. Allocate a chunk of your budget to create a visually appealing, user-friendly, and SEO-optimized website. Once that investment is made, make sure you are investing in upkeep. Keep your website healthy and up-to-date. And, it’s can be really helpful to have a pro tracking your stats and tweaking content to drive performance.

Content is King (and Queen!)

Invest in high-quality content creation. Blog posts, videos, podcasts, and guides will captivate your audience and showcase your expertise. Besides the obvious – sales – there are several other reasons you want to keep your content fresh.

It drives traffic to your website. Even when that traffic doesn’t convert, it tells Google that you are legit and increases your ranking in search results.
It reminds your followers (social, email) what you are known for.
It establishes you as a thought leader.

Engage with your audience, share your content, and build a community of loyal followers. For B2B marketing, paid advertising on platforms like Linkedin can also work wonders. It’s not cheap but it is a huge asset in developing lead generation and building a pipeline.

Email

Don’t underestimate the power of an engaging email campaign. Build a subscriber list and regularly feeding your audience with valuable content. Plus, when you pay close attention to those open and click rates, you can learn what it takes to hack your content for the purpose of results!

Small squares lying on a table with icons of people on them all connected via lines. How Much of My Budget Should be Spent on Marketing?

Networking

Attend events, conferences, and webinars to connect with potential clients and collaborators. Invest in your personal brand and make sure you leave a lasting impression.

We can’t stress this enough — outbound marketing alone will not get you to your greatest potential. How you show up online and in person is a game changer. Pair your marketing with YOU and you have a winning combination.

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Testimonials and Reviews

You may want to allocate resources to gather testimonials and positive reviews from satisfied clients. They serve as potent social proof to win over new prospects.

Paid Advertising

Consider pay-per-click (PPC) advertising if you’re aiming for rapid visibility and lead generation. Be smart with your targeting to get the most bang for your buck.

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The Art of Prioritization

It’s easy to get carried away in the marketing frenzy and blow your budget on shiny novelties. But here’s the scoop: prioritize wisely to ensure maximum impact without breaking the bank.

Nail the Basics First

Before experimenting with exotic strategies, ensure your core messaging and website are up to par and your content is engaging. A strong foundation is key to long-term success.

Follow the ROI Trail

Analyze the performance of each marketing channel and invest more in those bringing in the best returns. Keep an eye on your key performance indicators (KPIs) and adjust your strategy accordingly.

Test and Tweak

Don’t get too attached to a single approach. Continuously test and tweak your marketing efforts to find the sweet spot that resonates with your audience.

The 80/20 Rule

The Pareto principle holds true for marketing too. Identify the 20% of efforts bringing in 80% of your results and double down on them.

Hire a Professional or Do-it-Yourself?

Pros of Hiring a Professional

Expertise Unleashed

Marketing professionals bring a wealth of experience and knowledge to the table. They have their fingers on the pulse of the ever-changing marketing landscape, ensuring your strategies are up-to-date and effective.

Time is Money

Outsourcing your marketing efforts frees up your time to focus on what you do best—coaching and consulting! Let the experts handle the nitty-gritty, while you concentrate on transforming lives.

Creative Brilliance

Marketing pros are creative wizards, conjuring up captivating campaigns and eye-catching content that resonates with your target audience. Their expertise can elevate your brand to new heights.

Data-Driven Decisions

Marketing agencies have access to powerful analytics tools, enabling them to measure and analyze campaign performance. This data-driven approach allows for continuous optimization and better ROI.

Access to Resources

With a marketing agency at your side, you gain access to a range of resources, such as graphic designers, copywriters, and SEO specialists, amplifying the impact of your marketing efforts.

Cons of Hiring a Professional

Budget Battle

The premium services of a marketing agency come at a cost, and it might not fit well with a tight budget, especially for startups and solo practitioners.

Loss of Control

Handing over the reins means relinquishing some control over your marketing strategies. Communication is crucial to ensure your vision aligns with the agency’s execution.

Finding the Right Fit

Choosing the perfect marketing agency can be as challenging as finding a needle in a haystack. Research and vet potential partners diligently to avoid regrets later on.

Pros of Doing It Yourself

Cost-Effective

One of the most appealing aspects of DIY marketing is its cost-effectiveness. You can allocate your budget directly to specific channels, avoiding agency fees.

Authenticity Amplified

No one knows your brand better than you do. DIY marketing allows you to infuse your unique voice and personality into every aspect of your campaigns.

Immediate Control

With DIY marketing, you have complete control over your strategies and can make instant changes as you see fit, without waiting for agency approval.

Learning Opportunities

Taking on marketing yourself can be an invaluable learning experience. As you experiment and analyze results, you’ll gain a deeper understanding of what works for your business.

Cons of Doing-it-Yourself

Learning Curve

Unless you’re already a marketing savant, be prepared for a steep learning curve. Without expertise, you may waste time and resources on trial and error.

Time Sinkhole

Crafting and implementing marketing strategies can be time-consuming, diverting your attention from core business activities.

Limited Resources

DIY marketing means limited access to specialized tools and professionals, potentially hindering the full potential of your marketing efforts.

Rookie Mistake

Amateurish marketing can backfire, leading to missed opportunities and damage to your brand reputation.

A hand holding chalk against a chalkboard with countless squiggly lines leading out from it.

Final Verdict: The Choice is Yours

As you weigh the pros and cons, remember there’s no one-size-fits-all answer. The decision to hire vs DIY boils down to your budget, time constraints, and comfort level with marketing tasks. If your resources allow it, consider a hybrid approach—outsource certain aspects while handling others in-house.

Regardless of your choice, be relentless in your pursuit of marketing greatness. Stay informed, be open to new ideas, and don’t shy away from seeking help when needed. As you venture forth into the marketing arena, may your campaigns be bold, your strategies ingenious, and your success legendary!

Happy Marketing!

Congratulations, coaches and consultants! You now have the ammunition to conquer the marketing beast. Strike the perfect balance between budget allocation and marketing channels to unleash the full potential of your business. Remember, it’s not just about spending—it’s about making every penny count.

And, to be clear – we’d love to be your marketing partner. Start by setting up a call so we can learn more about your business and goals!

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