Would you spend money to make money?

If you had a small to medium sized business with profits between $0 and $500,000 annually, and outsourced (hired a freelancer/agency) to do the marketing aspect of your business, what would be the most you would pay per month?

The cost for you to hire one in-house Marketing Specialist (instead of outsourcing) at the industry standard is $120,000/yr ($12,000/m) before taxes, insurance, and other employee-related taxes/fees

  • I would budget at most $5,000/m
    33% (2)0% (0)20% (2)Vote
  • I would budget at most $10,000/m
    0% (0)25% (1)10% (1)Vote
  • Whatever it takes
    33% (2)50% (2)40% (4)Vote
  • Other maximum budget (read below)
    34% (2)25% (1)30% (3)Vote
And you are? I'm a GirlI'm a Guy
Updates:
The ($12,000/m) should be ($10,000/m)

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What Guys Said 2

  • I would make it more commission based

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    • Most agencies don't work that way. As with most lawyers, you usually have to retain them or, at the very least, pay some fee up front. Commission based pay isn't something that can really work with marketing either because it's so hard to track the ROI (this is more true for advertising than other types of promotions and other areas within the marketing mix)

    • Why are you going to an agency? Who do you get? Qualifications etc.
      You can track ROI W/ his/her contracts they bring in. I've got marketing contracts in "X" number of places whether it be DTC/DTV/infomercials. It makes them work harder so they can get their ROT.
      If you can't track ROI then how do you know what their doing each month? Is it worth keeping them on?
      Proceed carefully.

    • What? I didn't say you couldn't track ROI, I said it was difficult to say "well X amount of profits this month came from this specific advertisement (unless the customer remembers which ad is how they found out about your business and tells you that's exactly why they came in)", whereas with other types of promotions and other areas of the marketing mix, ROI is much more easily tracked down

      That's what I mean by ROI. Monetary return and leads, not placements as such

  • I know nothing about business

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What Girls Said 1

  • Marketing is business development. Having a business is one part, but marketing is another. Marketing is all about recognition and the ability to understand your target market and the potential customers that you can accumulate. Depending what outsourcing I choose, it depends on the product and service I am providing. Since (hypothetically speaking) I have a small to medium sized business, marketing can cost from $500 per week. Which depending on who I outsource with, they are likely to provide me with a strategic marketing plan to implement on.

    I picked A, $5000 per month is more then enough and i'm sure i'll be able to get great marketing plans for that sort of money. Obviously having an online website is pretty much mandatory, I would focus a good percentage of that marketing plan to establish a high quality website, as a majority of the world do online shopping.

    Anything over $5000 would be way to much, and i would expect to have a billboard with my business logo printed on it. There is no secret when it comes to having a successful marketing plan, but being able to cover all areas of my SME and proceeding through them, will benefit the business.

    It's also very important to place a budget when it comes to this as well, as to create a business in the first place is to make profit and not get bankrupt.

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    • So you would pay around $5,000/m to retain an agency that can do work that may take you from a smaller local business to something more regional/national in scale/customer base? I think that's a steal personally (based on my extensive knowledge of the business) for doing that sort of work. I'm just curious as to what others thing and am interested in knowing what some small business owners would do

      Now, when you're Walmart or McDonald's level then anything under $20,000/m sounds like you're ripping the agency off. National/International campaigns could get into the $100,000 for larger companies (which is where I'm assuming most businesses want to go)

    • Show All
    • Yes I know, it's ok. Realistically it would be 1.26 million per month

    • If you say so

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