How Much Does A Marketing Agency Charge?

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

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 do digital marketing agencies charge? Can your business afford it, or are we talking numbers that are too high for your business?

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

What do we think?

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?
A medical consultancy?
Maybe you're a printing company,
financial services broker,
or yoga instructor?

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

We've helped over 250 startups and small businesses over the past 11 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 that business owners are looking to implement, we think that our ballpark figure is pretty accurate.


Between 18% and 25% 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 have a business plan, right? If you don’t, you have bigger problems than marketing your business. )

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 think you’ll make $100,000 on the sales of your goods or services in a year, then bargain on spending a minimum of around $18,000 on marketing.

If you’re planning a gross profit of $250,000 for your business, then set aside at least $45,000 for creating the optimum marketing environment to realize that number.

That’s For
Mind You

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

So if you’re planning on advertising using Google Ads 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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