How much should I spend on Marketing?

What percentage of turnover is usually spent on marketing activites to acquire new clients for a training and coaching company? The company is classified as a small business. What is usually included in this percentage? Are employee cost associated with marketing activities? What about product and business development costs, is that also included?

Hello - the rule of thumb for any business is to spend approx 10% of gross turnover on marketing. Other golden principle is to spread your marketing across as many channels as possible - PR included (press releases about your business to the local papers always attach an interesting and imaginative picture with the release because that helps sell the story - then printed materials, online presence - and yes, we always include 'time' costs in the 10% and that will be appropriate for a smallish start-up business. As long as you know what your day rate is you can estimate and in the end there is nothing more effective than networking to extend broader networks - 'sweat your assets' in other words milk your existing clients for referrals - in a postive way you know 'I guess you like what we do - is there anyone you work with who might also like a meeting about what we do?'

10% - work to that - a good rule

:-)

The very best of luck!

US $900/week

if its begining of your business then you should spend a lot in marketing but Marketing is one of those costs that should be decreased as the business grows older

I will have to disagree with Bobby. I think your spending on marketing should always be high. Your business will always have room to grow that way. If you're successful, perhaps you could become a national chain! But that would only come with good marketing.

You should always spend as much as you can afford, especially at the beginning.

A good place to advertise for free is http://www.craigslist.org Chose your city and place a free ad. Craigslist as a whole gets about a billion hits a month!

Good luck. I hope you are very successful

yuwie is a website where you can advertide on for free to over 230000 peole there website is http://r.yuwie.com/vpoe

You spend whatever is needed.

But you spend it smart !

..and you spend it smart by learning what is effective in marketing.

Look at it this way....the only purpose for you to be in buisness is to "get and keep customers" There is nothing else.

"Marketing" is the science of getting and keeping customers....so its pretty important right?


so, spend away!

your employees are a big part of your marketing because they represent your company and have actual contact with customers....so train them to have a marketing mindset, and they will perform accordingly.