How much should a SaaS company spend on marketing?

For SaaS companies in the $1 million to $10 million annual revenue range, the figure for increased marketing spend tends to come in around $10,000 to $15,000.

What should be included in a marketing budget?

Your marketing budget should cover all costs needed to market your product or service, so that includes things like print advertising, promotions, demonstrations, exhibitions, public relations, social media, free product sampling or giveaways and costs to cover Google AdWords etc.

How much should a software company spend on marketing?

Currently, tech software companies spend around 15 percent of their annual budgets on marketing, only second to the consumer goods and consumer services industry.

How much should I spend on marketing my small business?

The U.S. Small Business Administration recommends spending 7 to 8 percent of your gross revenue for marketing and advertising if you’re doing less than $5 million a year in sales and your net profit margin—after all expenses—is in the 10 percent to 12 percent range.

How much does the average SMB spend on digital marketing?

The average SMB spends $400/month on marketing. SMBs spend on average 46\% of their marketing budget on digital marketing. 78\% of SMBs think that mobile marketing is an important channel for their business.

Tomasz Tunguz, a venture capitalist at Redpoint, has pointed out that leading SaaS companies allocate 80\% – 120\% of their revenue to marketing. This is backed by research that shows that public SaaS companies spend over 50\% of their revenue on research in the first 3 years.

How much should you spend on marketing your small business?

Newer companies should allocate more to marketing, to help speed up growth. The authors say that younger companies (1-5 years old) should spend 12-20\% of gross revenue on marketing. Older companies (assuming you’ve established some level of market share) should commit 6-12\%.

What is a SMB in business?

Small And Midsize Business (SMB) A small and midsize business (SMB) is a business that, due to its size, has different IT requirements — and often faces different IT challenges — than do large enterprises, and whose IT resources (usually budget and staff) are often highly constrained.