Although new clients often come to us with questions about online and off-line marketing budgets, the reality is that it’s up to each company to make their own decisions about what they can or should spend towards driving new business. Still, we have noticed that there are two big mistakes that organizations of all sizes tend to make again and again:
1. Thinking you can’t afford a good marketing plan. While no one likes to spend money on anything they don’t have to, the reality is that you can’t really afford not to have a good marketing plan. After all, the more you cut back on finding new business, the more likely it is that you’ll run out of business – and revenue – sometime in the near future.
2. Throwing lots of money at untested or unprofitable ideas. On the other side of the coin, clients sometimes abandon what has worked for them in the past simply because they feel excited to try something new that they read about, or that has worked for another business. Everything is untested and unproven when we first begin, of course, so there’s nothing wrong with experimenting. But, a big part of your marketing budget should go towards what you know works.
The bottom line is that setting your marketing budget is a bit of a balancing act. You want to be sure to invest enough to ensure you’ll be on stable footing for the future, leave a little to try new ideas, and devote the lion’s share to high-ROI plans and activities.