It is one of the most common questions we hear: how much should we actually be spending on marketing? There is no single right number, but there is a sensible way to work it out.
Start from your goals, not a guess
Work backwards from the growth you want. If you need 20 new customers a month, and roughly one in five enquiries becomes a customer, you need about 100 enquiries. Your marketing plan and budget should be built to generate that volume at a cost per enquiry your margins can support.
A common rule of thumb
Many small and medium-sized businesses invest somewhere between 5% and 10% of revenue in marketing, with businesses in a growth phase often spending more. Treat this as a starting point, not a rule.
What agency fees typically look like
Agency pricing varies with scope and competition, but as a broad guide in the UK, a single channel such as SEO or social media often costs from around £500 to £1,500 per month, while multi-channel programmes commonly run from £1,500 to £5,000 per month. US and Canadian pricing is similar once currency is taken into account. Paid advertising spend is always separate from management fees.
How to get more from your budget
- Fix the foundations first. A slow website or an incomplete Google Business Profile wastes every other pound you spend.
- Focus on two or three channels. Doing a few things well beats doing everything badly.
- Track every lead. Set up proper conversion tracking so you know which channels actually bring customers.
- Review monthly. Move budget toward what is working.
Not sure what your budget should be? View our packages or book a free strategy call and we will help you build a plan that fits.