[00:00:30] Oh great question. Love that one. I can’t give you an exact number but what I can tell you is that at the very beginning of my business was probably somewhere between 5 and 10% of my revenue just to create some awareness on the market.
[00:01:00] In the meantime, it’s of course higher because now I’m somewhere around 15 to 20% but awareness is not so much an issue anymore. It’s more growth. As soon as you get into a growth phase, you will have to invest more into marketing. I do understand that especially in the beginning, I call it the chicken egg marketing challenge.
[00:01:30] You don’t have enough revenue to cover your marketing costs but you need marketing to have more revenue. I encourage you to think about every free or low cost marketing opportunity you have. That includes social media marketing, for example. That’s for free. Content marketing, you can publish content and raise awareness about you and your business and your services for free. Email marketing, search engine optimization. There are many, many opportunities for you to have free or low cost marketing in the beginning.
[00:02:00] Great question. Currently, I’m spending between 15 and 20%, sometimes it dips a little higher depending on the season, of my revenue on marketing activities. You really always want to look at is a percentage of what’s coming in the door in terms of profit. Ideally, I would like to see you spending at least 10%, 10 to 12% seems to be a really good sweet spot on average for companies to be spending on marketing activities. I want you to look at your revenue, track your numbers, see if you’re at that 10% mark of your revenue geared towards marketing.
[00:02:30] As you grow, you may find that you need to start investing in different channels, different avenues, and you might need to increase that marketing budget all together. If you’re not spending at least 10% of all the revenue that comes in the door, I think you want to strongly reconsider where that money is being spent, and if it’s truly leading to revenue generating activities. Most likely, all marketing things, if done correctly, should always be leading to driving more revenue in your pocket. You’re kind of caught in a catch 22 where you need to spend money to make money, but every single time I’ve spent money wisely to make money, it’s always worked out.