Question by Teddy: What % of revenue you spend on advertising for your online business?
I am new to selling online. If you own an online business, what % of income (from this online business) you would be using for online marketing? Is there a normal range — say 20-40% to keep the business running, and more than 80% to grow the business more aggressively?
Answer by leesmith2
Given each business has different objectives, products, and markets, there are no hard-and-fast rules about establishing the size of an online advertising budget.
Our experience states that it is best to start out small (perhaps a few hundred dollars per month) – measuring performance objectives (which may be site visits, inquiries, RFP invitations, sales, etc.) so you know what you’re getting. If the program works, then ramp it up – still measuring along the way. You can continue to expand your advertising budget by trying additional channels, approaches, etc.
You’d be surprised how much money is spent online with no sense of ROI.
If you can’t measure your online advertising efforts then don’t spend the money until you can.
What do you think? Answer below!