Startups · Marketing

What % of total spending on marketing is viable for a startup?

Andrew Loader Andrew Loader is a Content Marketer and Freelance Writer

October 6th, 2016

Marketing is undoubtedly a prime way to drive business in and improve growth. I see some startup heavily relying on ONLY marketing.


Rupert Meghnot MBA CXO, Burnout Game Ventures, LLC

October 9th, 2016

Startups should, as a rule of thumb, set aside 25% of gross revenues for a holistic & comprehensive marketing plan (including a mix of marketing firms, print materials, digital & social media, events & conferences, guerilla tactics, etc.). This will ensure that enough capital is available to handle virtually any marketing opportunity (or threat). I see many companies looking solely at digital/social, at the expense of all else. The primary driver should be: go to where your customers go. Chances are they utilize a mix (the degree of each is adjusted based on customer preferences).

Troy Gardner Chief Technology Officer, Chief Brewing Officer at Cloud9 Brewing Systems

October 6th, 2016

there's no right answer, only that you are making more than you are spending AS A WHOLE, though it's easier to be successful in marketing with an same product as competition (e.g. bottled water, toothpaste) many companies lose money up front and make a profit off the backend (a loss leader) many retail companies also don't end up profitable till later in the year, thin margins are everywhere.

Gloria Luna VP Marketing - Brand builder and creative problem solver

October 8th, 2016

I've seen a number of startups underfund/devalue marketing and then sealing their fate by not scaling through awareness and customer engagement. It takes nuance to do it right with minimal budgets which means hiring a professional and not just a new graduate to do social media and calling that marketing.  

That said, if you are in a B2C business, the rule of thumb is around 20% of revenue (goals) with slightly more for launch to generate momentum.

Ekaterina Sytcheva Integrated Marketing and Lead Generation Expert,Owner of Prospect Solutions.

October 8th, 2016

I believe that it is a matter of strategy, but not a %$$ of spending. As a start up, you should do a lot of marketing, but do it smart. Do not rely on a single solution such as telemarketing, or SEO only. In modern marketing there are no quick fixes... Consider integrated marketing strategies.