Model

    Price Point

      Buyers

        Challenges

          Market Maturity

            Competition

              Annual Revenue

              million

              Growth Goal

                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.

                Overall Budget

                We recommend that you look to spend 7% of revenue between 280K to 420K.

                Companies generally spend 7% to 10% of their overall company revenue on marketing, but this changes based on several factors:

                  According to a Gartner CMO survey, marketing budgets as a proportion of company revenue dropped to 6.4% in 2021, down from 11% the previous year.

                  Allowcation By Channel

                  While there is no exact formula, this represents benchmarks for channel distibution.

                    How to determine a marketing budget for your SaaS company.

                    Budgeting is never an easy task whether you are starting from scratch or scratching your head over whether your current budget is even close to right.

                    SaaS Customer Lifetime Value

                    One of the first points of discussion when talking about budgeting for SaaS is the LTV or Lifetime Value of a customer.

                    If customers average an 18 month subscription at $100 per month, then you are looking at an average LTV of $1,800.  You want your user acquisition cost as well as operating costs to be well below this to maximize profit.  Separate from marketing is your user retention and customer loyalty that can increase the LTV.

                    If you have a low LTV, obviously your budget for marketing will be very thin or cause you to be in the red. Many high-growth SaaS and technology companies will outspend their average LTV as a way to maximize user acquisition in early stages.

                    Talk To Us

                    Get help determining your budget.

                    ( Or book a meeting right now )

                    Fields marked with an * are required