One of the most common questions small business owners ask is how much they should spend on marketing. The answers online range from vague percentages to aggressive investment strategies, leaving many unsure of what makes sense for their situation.
The truth is, there isn’t a universal number. The right marketing budget depends on your goals, growth stage, competition, and revenue model.
At Corey Consulting, we help businesses approach marketing investment strategically, not emotionally.
The Percentage Rule and Its Limits
You may have heard that businesses should allocate 5–10% of revenue to marketing. While that can serve as a general benchmark, it doesn’t tell the full story.
A stable, referral-driven company may require less. A business trying to enter a competitive market or scale quickly may need significantly more. Percentages provide context, but strategy determines direction.
Marketing Is an Investment, Not an Expense
Marketing should generate measurable return. If it’s structured correctly, it doesn’t simply “cost” money, it produces revenue.
The real question isn’t how much you can afford to spend. It’s how much you need to invest to generate consistent, qualified leads that support your growth goals.
Underinvesting often creates inconsistent visibility. Overinvesting without strategy wastes resources. The right amount supports sustainable momentum.
Consider Your Growth Stage
Early-stage businesses typically invest more aggressively to build awareness and credibility. Established businesses may shift focus toward efficiency, retention, and refinement.
If growth is a priority, your marketing budget should reflect that ambition. If stability is the goal, your strategy may prioritize maintaining visibility and protecting market share.
Competition Influences Cost
In highly competitive industries, visibility costs more. Paid advertising, SEO, and content development require consistent effort to stand out.
Ignoring marketing in competitive markets often leads to declining visibility over time, even if the business itself is strong.
Balance Channels for Stability
A balanced marketing budget supports multiple channels rather than relying on one. Search visibility, paid advertising, website optimization, content, and reputation management each play a role.
Diversification protects your business from fluctuations in any single platform.
Focus on Return, Not Just Spend
The most important metric isn’t the size of your budget, it’s performance. Tracking cost per lead, conversion rates, and revenue generated provides clarity.
When marketing is structured around measurable outcomes, budget decisions become more confident and less reactive.
Building a Budget With Purpose
There is no magic number that fits every business. What matters is aligning your marketing investment with your revenue goals, competition level, and growth strategy.
At Corey Consulting, we help businesses design marketing systems that justify their budget through performance and clarity. When your investment is intentional and measurable, marketing becomes a driver of growth, not a guessing game.