:

 

Perform a Google search on "how to determine a marketing budget" and you'll get roughly 3.75 million results.

 

Advice includes everything from using a percentage of revenue and copying your competition to establishing a flat dollar amount and estimating expenditures using past costs.

 

Of course, these strategies can work. But, in many instances, establishing a firm marketing budget is risky. 

 

Let me explain ...

 

The reality is marketing budgets are often set at the beginning of the year -- before any money is spent. And this creates a problem because there's no way of knowing how much you should allocate if you don't yet know what's working.

 

You may remember a few weeks ago when I explained the importance of viewing your marketing as an asset, instead of an expense. Truth be told, the reason most business owners establish marketing budgets is because they expect their promotional efforts to fail.

 

They don't want to lose too much money -- and that's understandable.

 

 

You wouldn't, right?

 

That would be like avoiding an ATM machine because every time you withdrew $20, your bank deposited $25 into your account.

 

Now I'm not saying you should spend for the sake of spending. I just want you to reconsider your marketing approach.

 

Begin by putting tools in place so you can monitor the results of every marketing medium (e.g., e-mail, direct mail, newspaper ads, etc.) you use. If a particular medium isn't working, adjust your copy and/or offer, or stop using it altogether.

 

(NOTE: Many failed marketing pieces have ego-driven messages that include more oversized logos and company references than helpful information for prospects.)

 

Keep in mind, if you fail using a particular medium the first time ... or the second ... or even the third, don't automatically assume it doesn't work. Instead, test new variables in front of smaller, targeted audiences.

 

You see, marketing is a lot like baseball -- failure is part of the game.

 

When I played Little League, my dad always reminded me how the best batters at the major-league level fail at least 7 out of 10 times. These days, players who have .300 averages make millions.

 

Just like the major leaguers, you must continue stepping up to the plate and swinging. You'll eventually connect for a few hits and even an occasional home run.

 

 

Sincerely,
Tom Trush

 

*** If you need help crafting copy to boost responses on your marketing pieces, just reply back to this e-mail and I'll give you a quick quote. I write website content, e-mail campaigns, sales letters and much more. ***