How much does marketing cost for a small business?
TL;DR
Most small businesses spend 7-12% of revenue on marketing. A typical local business with $300K revenue spends $1,750-$3,000 per month. Customer-marketing platforms cost $49-$299/month and replace most paid ads.
Detailed answer
- 1.The SBA recommends 7-8% of gross revenue for established businesses and 12-20% for new businesses.
- 2.Paid ads (Google, Meta) average $1,000-$5,000/month for local businesses.
- 3.Local SEO and content marketing: $500-$2,500/month.
- 4.Customer-marketing software (referrals, reviews, loyalty): $49-$299/month.
- 5.Influencer collabs: $50-$500 per post for nano/micro creators.
Common mistakes
- 1. Spending only on paid ads and ignoring earned media.
- 2. Not tracking which channel actually drives revenue.
- 3. Cutting marketing first when revenue dips.
What to do instead
Allocate 60% to channels that compound over time (SEO, customer marketing, referrals) and 40% to immediate-response channels (paid ads, promotions).
Measure cost per acquired customer for each channel monthly and double down on whichever beats your average customer lifetime value.
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