How Much Should I Spend On Digital Marketing?
Updated: Jan 19
This is a common question for Agency Owners. "I know I need Digital Marketing, but there are so many options. How do I know how much to spend and how do I know if it's worth it?"
So...How Much Should I Spend On Digital Marketing?
According to the Small Business Administration, you should be using between 7% - 14% of your gross revenue for your overall marketing budget. It is also suggested to allocate half of your overall marketing budget to Digital Marketing. This means...*insert drum roll*... you should be spending 3.5% - 7% of your gross revenue on Digital Marketing.
How Do I Calculate My Gross Revenue?
Use the custom calculator on this page to calculate your estimated monthly gross revenue and your estimated monthly min-max digital marketing budget.
How Do I Know If What I Am Spending Is Making Me Money?
For every dollar you spend you should AT LEAST see a neutral or positive Return on Investment (ROI).
In other words, if you spend $2000 in Digital Marketing this month, you should be earning at least $2000 back. If you earn back $2000, then your ROI = 0%. If you earn less than what you are spending, your ROI is a negative number and it may be time to switch Digital Marketing companies 😉.
At Home Care Digital Marketing, we provide monthly reports showing how your agency is increasing its digital presence and how that equates to new clients and a positive ROI.
Contact Us today to discuss your marketing needs and how we can partner to bring your Home Care Agency to #1 in your area.