Budget Ratio for Marketing

Like I was telling you with those ratios, I know you were talking about how I use my marketing. 37% in employees and then the 25% in marketing.

You have to be disciplined at any level of your business to put 25% back into marketing. Because without top line revenue, you can’t grow your business. I don’t care where you are in your business—if you’re pulling in $1,000 a month or if you’re pulling $100,000 a month. 25% of that needs to go into some sort of marketing effort.

And for people that are starting out, your marketing efforts might be giving away stuff for free. I have to do some free things in order to get stories to build. And that is part of my marketing spend. It’s great at that level because then you have somebody talking about your stuff.

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