How Much To Spend On Small Business Marketing

Yesterday I was talking with a client, from California, who wanted to know how she could reduce her small business marketing costs. She was sending out 100 free pamphlets each week at $8 a piece or $800 per week. Sounds expensive right?

I told her, before she looked at how to cut this marketing cost, she should take a look at her ROI, return on investment. When I asked her how much business this weekly marketing mailing was bringing in she calculated over $4,000 of weekly revenue that came in as a result of her mailings.

That’s a 500% rate of return on her small business marketing, which is, of course, outstanding.

Once she was able to evaluate the right numbers she came to the obvious conclusion, instead of trying to cut the marketing costs for her small business, the fastest way to increase revenue was to spend more on marketing that was working.
– Charlie Cook,