Stop guessing and start growing with a marketing budget that actually works for your unique business
Every creative entrepreneur faces the same kryptonite-level question: "How much should I spend on marketing?" Whether you're a freelance photographer trying to book more clients or an artist selling handmade jewelry, figuring out your marketing budget can feel more confusing than deciphering a Riddler puzzle.
Unfortunately, there's no one-size-fits-all answer. A wedding photographer's marketing needs are very different from a freelance writer's or a graphic designer's. But don't worry - I'm here to walk you through a step-by-step process that'll help you calculate a marketing budget that makes sense for your unique business (aka your superhero operation).
By the end of this post, you'll have a clear framework for determining how much to invest in marketing, which channels deserve your hard-earned dollars, and how to track whether your efforts are actually paying off.
Step 1: Assess Your Business Goals
Before you can determine how much to spend on marketing, you need to get crystal clear on what you're trying to achieve. Think of this as defining your superhero mission.
Are you looking to increase brand awareness so more people discover your services (photography, graphic design, illustration)? Do you want to boost sales of your existing products? Or are you launching something completely new and need to build an audience from scratch?
Your goals will directly impact how much you should invest. For example, if you're an established consultant looking to maintain steady client flow, your marketing budget might be smaller than someone launching a new online course who needs to build awareness fast.
Write down 2-3 specific, measurable goals. Instead of "get more clients," try "book 5 new photography sessions per month" or "increase online art sales by 30% in the next quarter." These concrete targets will help you determine whether your marketing spend is actually working.
Step 2: Calculate Your Revenue
Now it's time for some real talk about your finances. To set a realistic marketing budget, you need to know exactly how much revenue your business is generating, or realistically can generate.
Look at your income from the past 6-12 months. If you're just starting out or your business is seasonal, estimate your expected monthly revenue based on your pricing and realistic sales projections. Don't inflate these numbers to make yourself feel better. We need the honest truth to create a budget that won't leave you eating ramen for months.
For many small business owners, especially those running side hustles, revenue can be unpredictable. If that's you, use your lowest consistent monthly income as your baseline. It's better to be conservative here than to overspend and stress yourself out.
Remember, this isn't just about how much money comes in. Consider your profit margins too. If you're selling physical products, factor in your cost of goods sold (and shipping, if necessary). Service-based businesses typically have higher profit margins, which might allow for more aggressive marketing spending.
Step 3: Research Industry Benchmarks
Here's where things get interesting. Different industries have wildly different marketing spending norms, and as a creative entrepreneur, you need to understand what's realistic for your specific field.
The general rule of thumb is that businesses should spend 5-10% of their revenue on marketing. But this varies significantly based on your industry, business maturity, and growth goals. Newer businesses often need to invest more - sometimes 10-20% - to build awareness and gain traction.
Look for industry-specific data when possible. Photography businesses might need different approaches than consulting services. Join Facebook groups, follow industry blogs, or connect with other entrepreneurs in your space to get a sense of what's working.
Don't get too hung up on these benchmarks, though. A successful artist I know spends almost nothing on traditional marketing but invests heavily in craft fair booth fees and supplies for in-person events. Her "marketing budget" looks completely different from a web designer who focuses on online advertising, but both strategies work for their unique situations.
Step 4: Choose Your Marketing Strategies
This is where your superpower (aka your unique skill or service) really matters. The marketing channels that work best for you depend entirely on your business type and where your ideal clients hang out.
Visual artists and photographers often find Instagram to be their secret weapon. You might invest in high-quality photography equipment for your posts, Instagram ads, or tools to help you create engaging content.
Writers and storytellers, on the other hand, might gravitate toward platforms like Substack, LinkedIn, or Medium for sharing their expertise. Your marketing budget might focus on newsletter platforms, content creation tools, or networking events.
Here's something that applies to every single business owner reading this: email marketing should be mandatory. I don't care if you're a painter, consultant, photographer, or freelance video editor - email is your direct line to people who've already shown interest in what you do. Unlike social media, where algorithms can hide your posts, email lands directly in your audience's inbox. Start building your email list from day one, and allocate part of your marketing budget to a solid email platform.
Consider both free and paid strategies. Social media posting is free (though time-intensive), while Facebook ads or Google Ads require upfront investment. Many successful small business owners start with free methods to test what resonates, then invest money to amplify what's working.
Step 5: Allocate Budget to Each Strategy
Now comes the fun part—actually dividing up your marketing dollars. Think of this like assembling your utility belt with the right tools for each mission.
Start by prioritizing channels based on where your ideal clients spend time and which align best with your strengths. If you're a natural storyteller, content marketing might deserve a bigger chunk than paid advertising. If you're better at building relationships than creating content, networking events and referral programs might be your focus.
A simple allocation might look like this: 40% on your primary channel (maybe Instagram for a visual artist), 30% on email marketing and list building, 20% on a secondary channel for testing, and 10% on tools and software to make everything run smoothly.
Don't spread yourself too thin. It's better to do 2-3 marketing activities really well than to dabble in 10 different strategies without seeing results from any of them.
Remember to factor in both money and time. That "free" social media strategy still requires hours of content creation, engagement, and planning. If you're spending 10 hours a week on Instagram, assign a dollar value to that time based on what you could earn doing client work instead.
Step 6: Track and Measure Your Results
Here's where most small business owners drop the ball. They spend money on marketing but never actually track whether it's working. Don't be that person!
Set up simple systems to monitor your results from day one. This doesn't have to be complicated. Use free tools like Google Analytics for website traffic, track social media engagement through native platform insights, and monitor email open rates through your newsletter platform.
Most importantly, connect your marketing activities to actual business results. It's nice that your Instagram posts are getting more likes, but are they leading to inquiries and sales? Track where your paying customers are coming from so you can invest more in what's actually working.
Review your results monthly and be prepared to shift your budget. If Instagram ads are generating a 3x return but your Facebook posts are crickets, move money from Facebook to Instagram. Marketing isn't a "set it and forget it" game. It requires ongoing attention and optimization.
Set up a simple tracking spreadsheet with columns for marketing spend, leads generated, and revenue attributed to each channel. This will become your roadmap for making smart budget decisions in the future.
Your Marketing Budget Doesn't Have to Be Perfect (Just Flexible)
Creating your first marketing budget can feel overwhelming, but remember, you don't need to have all the answers right away. The key is to start with a plan based on what you know now, then stay flexible as you learn what works for your unique business.
Think of your marketing budget as a living document, not a set-in-stone commandment. Successful entrepreneurs constantly experiment, measure results, and adjust their approach based on what they discover.
Start small with your experiments. Test one new marketing channel at a time with a modest budget. Once you identify a winning method, maybe it's local networking events that consistently bring in clients, or Instagram Reels that drive traffic to your website, then you can use advertising or increased investment to amplify those results.
Your superpower is unique, and your marketing budget should be too. Take the framework from this post, adapt it to your specific situation, and start building a marketing strategy that actually moves the needle for your business. The world needs what you have to offer. Now you have the tools to make sure the right people find out about it.
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