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What Bert said is correct. If you spend 10% and your business only makes 30K then that’s not much and if you’re spending 10% of 2.5Mil then it’s a different cup of tea.
I have some clients who are very aggressive and spend up to 25-30% or more just purely because it’s early days in their business and they’re not too concerned with their own bank accounts. Therefore it makes sense just reinvest into their business as much as they can so that can reap greater future growth.
It all depends on your growth goals.
Relying on word of mouth is often unpredictable and trying to do everything yourself is time consuming and not an efficient use of your time if it’s not your speciality.
If you track your website (phone calls, sales, signups, enquiries) then you should know that if you spend $2650 then your cost per lead will be $X dollars and you’ll get X number of leads. I for one never read the newspaper, while it still might have some value i’d say returns are far lower than moving into digital.
Not all agencies are sharks either, alot are mind you, but a good agency is worth their weight in gold. Sure, I could service my own car but there’s a good chance the motor might drop out half way down the road. If you can find someone that you can trust and who can make your campaigns profitable quickly then I’ve found the conversation changes and it’s less focused on cost and more focused on how can i spend more.