A question I hear all the time from business owners is, "How much should I be spending on marketing?"

There’s no perfect number, but here’s a simple way to estimate your budget using some basic math:

Lifetime Value (LTV):

Let’s say your average customer brings in $1,000 per month and stays with you for 3 years.

Profit Margin:

If your profit margin is 30%, you’ll make $10,800 over the lifetime of that customer. Here’s the math:

Cost Per Appointment (CPA):

Cost per appointment is how much you're spending to get appointments (leads, meetings, consultations, etc.), divided by the number of appointments you get.

Based on our data, most businesses spend between $250 and $500 per appointment.

Schedule a FREE Consultation Call with John Plumstead to learn more on how we set up Cost Per Appointment

Conversion Rate:

If you close 20% of the appointments you get, that means 1 in 5 leads becomes a customer.

YOU NEED 5 APPOINTMENTS TO CLOSE 1 CUSTOMER

Here’s the math to figure out your marketing expenditure per customer:

Return on Marketing Expenditure:

For every $1,250 spent, you’re making $10,800 in profit. That’s an 8.64X return on your marketing investment.

If you want to say "F-it" and skip the detailed math, here's a quick rule: Spend 5-10% of your monthly revenue on marketing. That’s usually where you should be, and you can adjust as you go.

EXCITING ANNOUNCEMENT

Exciting news! Our new Bravo Company Digital website has officially launched today!

Explore enhanced features, valuable resources, and client success stories designed to boost your lead generation.

Best,
John
Bravo Company Digital

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