How do I calculate my SaaS marketing budget?

Model

Your sales model such as subscription, freemium, or one-time purchase.

Different models may require varying levels of investment in customer acquisition strategies.

Price

Indicate your typical pricing tier.

Higher price points might necessitate a more targeted, high-touch marketing strategy, while lower price points might benefit from volume-based marketing.

Maturity

Specify whether your market is new or mature.

Emerging markets might require extensive education and awareness campaigns, while mature markets might need differentiation and retention strategies.

Competition

Assess the level of competition in your market, from few competitors to many.

High competition often drives up marketing costs due to the need for more aggressive positioning and promotions.

Revenue

Select your company’s annual revenue range.

This helps to benchmark your marketing spend as a percentage of revenue, which varies by company size and growth stage.

Growth

Define your target growth percentage for the upcoming period.

Higher growth goals typically require a larger marketing budget to fuel lead generation, market penetration, and customer acquisition.

Buyers

Identify your primary customer segments: SMB (Small and Medium Business), Mid-Market, or Enterprise. Different segments may have distinct marketing needs and channels, affecting your budget allocation.

Challenges

Describe any sales challenges such as high regulatory requirements, security demands, or committee-based purchasing decisions.

These factors can increase the complexity and cost of sales and marketing efforts.