When putting together your marketing budget, starting with a percentage of revenue, or building complicated SLAs or distributing detailed RFPs are all inefficient ways of determining your marketing budget and finding the perfect agency for the job.
Let’s work backward.
Start with a final goal. This goal should be one that impacts you’re business greatly in some way. For example, let’s say that 10 new customers in a 12 month period will both generate a significant growth in your business but not overwhelm your resources.
Let’s also say that 10 new customers are worth $10,000 per year (every year) in profit for your business.
When setting your marketing budget, determine what reaching that goal is worth. In other words, what are you willing to invest (or gamble) to achieve that goal? That’s your marketing budget.
Sound easy? It is. The hard part is discovering an agency that can confidently achieve that objective for a price that will fit snugly into your new budget. More on that later…