For many, creating an advertising budget is based on a percentage of revenue. It’s a simple calculation: Your gross revenue is $3 million, so your marketing budget should be around $240,000 or 8%*.
There are as many ideas about the correct percentage as there are about how you should measure the marketing efforts. Yet, here is a new way. According to research conducted by Hubspot, we have an average cost per lead (CPL) by category. So you want 1,000 leads in the financial services category, then you need a budget of approximately $272,000 ($272 CPL X 1,000 leads).
Here are few highlights of the survey by category:
- Marketing Agencies $173
- Manufacturing & Industrial $235
- Healthcare & Medical $286
- IT Services $370
The average is $198 per lead.
According to HubSpot, by defining marketing-sales roles dramatically reduces customer acquisition costs by 50%. US companies with a formal sales-marketing agreement can cut the CPL in half.
*Recommended by SBA