"How much should we spend on marketing?" is one of the most common questions founders ask, and most of the answers floating around are unhelpful. Percentage-of-revenue rules of thumb sound authoritative but ignore your stage, your margins and your goals. A more useful approach is to start from what you're trying to achieve and work backwards.
Start with the goal, not the number
Before deciding on an amount, get clear on what the money is meant to do. Are you trying to fill a pipeline this quarter? Build long-term visibility? Launch something new? Different goals call for different spending, and some of the most valuable early marketing — clear messaging, consistent outreach, looking after existing customers — costs more in attention than in cash.
A simple way to divide it
Once you have a figure you're comfortable with, a rough split helps keep it balanced rather than pouring everything into one channel on a hunch:
- A majority on the things already working, or most likely to — your proven channels
- A smaller portion on steady, compounding efforts like content and reputation
- A small slice reserved for experiments you're willing to lose
The experiment slice matters more than it looks. It's how you find your next reliable channel without betting the whole budget on an unknown.
Judge it on outcomes you can see
A budget only works if you can tell whether it's doing its job. You don't need perfect attribution — few growing businesses have it — but you do need a handful of honest signals: are enquiries going up, are the right kinds of conversations happening, are customers coming from where you expected? Review it regularly and move money toward what's working.
The best marketing budget isn't the biggest one. It's the one that's tied to a clear goal, spread sensibly, and revisited often enough that it keeps getting smarter. Start smaller than you think, learn fast, and scale the things that earn it.
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