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?
You Shouldn’t Be Self-Marketing
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
We’ve helped over 170 startups and small businesses over the past 9 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.
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 Everything,
That figure isn’t what you’d pay to a marketing services company.
It’s for everything.
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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