Yep, budget marketing (or “affordable marketing”) is the most commonly used budget setting method, and it is the one that I would most recommend when you are starting out and setting your marketing budget. It has its pros and cons though which you should be aware of.
Essentially how you do this is work out your budget according to your business income and other expenses.
So when you are planning your business finances and cash flow (which you are doing aren’t you?) then your marketing budget is one cost that you plan in alongside your phone bill, broadband expenses, stationery and so on.
If you are marketing on a budget then this means that you have full control and flexibility over how much money you spend on your marketing. You decide a suitable figure..and it’s really nothing more complicated than that.
The negative side of setting your marketing budget in this way is that generally businesses under spend on their marketing because they don’t understand the relationship between marketing spend and the likely returns.
That said, when you are starting out with your business and in writing your marketing plan then I would recommend using this budget marketing route.
Obviously I don’t know what your business income and expenses are, and the more you are able to spend on marketing the better it will be for you. BUT do not attempt to stretch yourself just because you think that you should have a marketing budget, rather than setting a figure that you can afford and that you’re happy with.
The types of things that I would recommend you spend your marketing budget on are services that automate your marketing for you.Â For instance, www.SocialOomph.com (about $27/Â£18 a month) allows you to automate all your social media in advance, an autoresponder such as www.Aweber.com (about $20/Â£12 a month) allows you to build your list easily and use email marketing to your full advantage.Â
If the answer is zero then write Â£0 in your marketing plan. This will therefore dictate the types of marketing activities that you go for.
Personally I would recommend starting with somewhere between Â£50 and Â£100 a month (or your currency’s equivalent). But if you can only afford Â£20 a month, then start with that.
The key is to set a budget and then stick to it. So if something comes along that requires you to spend outside of that budget – then you should be saying “no”.
As your business turnover increases, then increase your marketing budget.
This is officially called the “affordable” budget setting method – so keep it that way.
Next week, I’ll look at the next affordable method for you (more suited to those with more established business, who have a turnover of Â£1,500 a month +).
Have a great week!
PS The two links to outside sites are affiliate links: I publish a lot of free “How to” information which I hope you agree is helpful to you and your business.Â I don’t get paid directly for this, and so I use affiliate schemes to help fund my time for producing this information.Â However you can be assured that I ONLY ever recommend services that I personally use myself and are happy telling you about.Â If you prefer not to use the affiliate link (and it doesn’t make any difference to what you pay for the service), that’s absolutely fine….just type in the URLs that you see into your internet browser.