How Much Does A Marketing Agency Charge?

You’re a start-up or small business, and we’re betting that you’ve done some marketing already.

We’re also betting that your marketing results aren’t as good as you’d hoped.

( After all, that’s why you’re here, right? )

You’re thinking about appointing a marketing services company to improve things. But how much is it going to cost? Where can you get an feel for digital marketing agency pricing? Can your business afford such marketing pricing?

Wouldn’t it be easier (and cheaper) to carry-on self-marketing your business, even if the results aren’t that great?

You Shouldn’t Be Self-Marketing
Your Business…
…Unless Your Business Is Marketing

If you’re a marketing services company, digital marketing agency or marketing consultant, then handling the marketing yourself might make sense.

But what if your business is anything else but marketing?

Supposing you’re a photographic studio, a manufacturer of cleaning equipment, or a medical consultancy?

Maybe you’re a printing company, financial services broker, or yoga instructor?

If that’s the case, then the last thing you should be doing is self-marketing your business!

A Good Rule Of Thumb For Calculating How Much To Spend On Small Business Marketing

Rule Of Thumb For Calculating How Much To Spend On Marketing

We’ve worked with over 100 companies over the past eight years. Over that time we’ve devised a pretty-accurate rule-of-thumb for calculating the cost of marketing a startup or small business.

Bear in mind that different businesses have different needs, and the last thing we would do is adopt any kind of “cookie-cutter” approach with a client.

However, based upon the usual list of marketing initiatives where business owners ask us to help them, we think that our ballpark figure is pretty accurate.

Around Of Gross Profit.

A good rule-of-thumb to work out how much you should be spending on marketing is to look at your business plan.

( You do have a business plan, right? )

Look at your estimated gross profit on the turnover forecasted for your business for the next 12 months. Whatever that number is, take between 18% and 25% of it, and you’ll be pretty close to estimating how much your company should be spending on marketing in a year.

  • So if you’re planning a gross profit of $250,000, then bargain on spending at least $45,000 on marketing.

  • If you think you’ll make $100,000 on the sales of your goods or services, then set aside at least $18,000 for creating the optimum environment to realize that number.

Does that sound like a lot? It’s not really.

That’s For Everything, Mind You

That figure isn’t just what you’d pay to a marketing services company. It’s for everything.

So if you’re planning on advertising using Google Adwords or Facebook Ads for example, that comes out of the overall number.

The same with buying or renting email lists, media release distribution, website hosting, design and/or printing costs for collateral like flyers, ads, newsletters, and so on.

You get the idea, right?


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