The “rule of thumb” used to be 2% – 5% of gross sales. So a company with sales of $5 million should be allocating approximately $100,000 to $250,000 for its annual marketing budget. Companies that are marketing to consumers are at the higher end of that spectrum.
Having said that, we believe worthwhile marketing should NOT be viewed as a cost – it is an investment in future sales. Marketing done well will increase your bottom line. Poorly planned or executed marketing strategies will do more harm than good – which ultimately costs your business more in the long run.