I know. That question makes you cringe. Believe me, I hate it too. But I need to ask, and the sooner I can bring it up, the better. Otherwise, we run the risk of animosity and aggravation down the road.
Some of you have no problem answering this question, but for those of you that do, graphic design projects are paid through marketing budgets, and here's a quick overview on how to set one.
Most companies spend between 3-10% of their sales revenue on marketing. Your actual percentage could be lower or higher, depending on your industry and phase. For example, niche B2B companies can get away with 1%, while retailers and pharmaceuticals typically spend more than 20%, and companies going through start up or growth have been known to spend even more.
Once you have a percentage, you can refer to your expenditures from last year, along with your projections and plans for this year, to determine an overall marketing budget and line item amounts within that budget. It's not uncommon for companies to significantly increase or decrease spending in some areas in order to meet certain objectives, so don't worry if the same applies to you.
Nothing is set in stone, of course, but the numbers will give you a better sense of what's possible, and prepare you for the money conversation when the time comes.
Until next time,
K
"Money isn't everything. It's just most everything." ~ Nica Clark
:: If you have a question about marketing budgets, or need help with your marketing plan, feel free call us at 312.772.3962, or email studio {at} kittysingsuwan {dot} com.
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