Marketing Budget Allocation

As per the last two posts (The Value of a New Customer and Marketing Budget 101) I talked about one way of determining your marketing/sales budget.

If you want a simpler method, allocate a percentage of total revenue.

Now the question is where to spend your money for maximum effect.

There are basically four sources of future sales:

• Existing customers,
• Referrals (word of mouth),
• Prospecting, cold calling and networking, and
• New leads from marketing.

You will want to allocate funding (or effort) to […]