How Much Money Are We Going to Spend This Year?

It is time for all of us to use the successful marketing initiatives we started in 2006 and expand upon in 2007. Where do we start? With a budget of course. Every company needs to set a marketing budget and make a plan for spending that money during 2007. A marketing budget is not only a guide for allocating money, but it is incentive to sell more, an investment in gaining brand recognition and a commitment to building a client base.

Traditional marketing schools will tell you that 5 to 10 percent of your gross income should be spent on marketing your company. The money you spend on marketing your company needs to be tracked and evaluated to see if the marketing avenues you have selected are effective. The money you choose to spend on marketing should generate additional revenue for your company. If you are spending more on marketing than you are making in return for your efforts, your marketing mix needs to be re-evaluated.

Where Should I Spend My Budget?

This is a tricky question and one we are often asked. The answer is different for most companies and the way to find it is to set specific goals for your budget. For instance, your broad goal for your budget might be that you want to have more clients. If that is the case there are many avenues for marketing you can take; direct mail, advertising campaigns, billboards, the choices are endless. Now let’s be more specific about your goal.

A more focused goal would be; I want clients that produce $5,000.00 or more per year in revenue for my business and I am willing to spend 1% of that potential revenue to land that client. That means that for every client you are willing to spend $100 to land that client. That puts the marketing initiative into perspective.

If you set specific goals it is easier to see how much money you are will to part with in order to generate certain types of business.

Don’t Forget Your Website This Year!

It is a great idea to gather website statistics at the beginning of each New Year. We suggest that every quarter you review your website traffic to better evaluate the effectiveness of your site. Remember that the most important visitor number is the “unique visitor” - this is a realistic picture of the number of people coming to your website.

We often forget that a website is not simply a brochure out in cyberspace that represents our company, rather a medium of conveying who we are to important, potential clients!

Happy 2007!
The FliteHaus Crew