How Much Should You Spend on Marketing?
Someone asked a very odd question in a discussion group:
How a startup is viewed (by an investor) when its majority spending is on marketing/advertising?
In my answer, I chose to ignore the investor question (although I hint at it in my last sentence) and discuss it instead from an overall business point of view. Let me share that answer:
Having written several books on how to market effectively with little or no money, I definitely agree. While we don’t all have to be as extreme as Google, which built one of the most profitable companies in the world without spending anything on advertising, I think all of us should be focused heavily on more creative, more interactive marketing—including content, interactive involvement tools on your website, social media actual participation (not just advertising), live appearances, etc.—only using advertising and other paid strategies sparingly if at all. This is something I can help with, BTW. For a very affordable cost, I can create an entire marketing plan for you, rooted in these kinds of strategies as they make sense for your particular business/skill set/interests.
If someone is spending more on marketing than on operations, I’d worry about their long-term viability.
