The simple answer here is 'yes, it is' but actually, that's the wrong question.
The question should be "How much should I invest in marketing?" because that's exactly what it is, an investment.
And you're either investing in expertise, which takes a long time to cultivate; or you're paying for rookie mistakes due to lack of experience. These mistakes cost very little at first but they add up over time with little to no results to show for them, costing you in the long run.
How much is marketing?
That’s why it’s crucial to prioritise your needs and balance this with your budget. As a general guideline, new businesses should allocate around 15 to 20% of their gross revenue to marketing, while established companies can often manage with 5 to 10%.
Given the diverse range of activities encompassed by the term "marketing," it is essential to decide how each portion of the budget is allocated and thoroughly assess the returns. For instance, if a significant portion of your business comes from client referrals, dedicating the majority of your budget to Facebook or Google ads to attract new clients probably isn’t the most strategic approach. Instead, focusing on promoting your business to existing customers and providing incentives for new referrals could yield far more favourable results.
Is it worth it to pay for marketing?
That all depends on your time, budget and level of expertise. If you know the majority of your customers find you on TikTok, you're great at making video content and you have the time to do it then it makes sense that you take on the task yourself. If you're not sure where to start, it's probably a shout to get some outside help.
How to choose a good marketing agency?
There are many, many marketing agencies out there and the choice can be overwhelming. It's not a regulated industry either which means any old Tom, Dick or Harry can set themselves up with a marketing business. This isn't where we tell you 'we're the best, pick us!' either, in fact we may not be the right choice for you. We specialise in relationship building marketing; helping businesses build a trusted and loyal customer base. We work with companies who sell products or services over a longer period of time and whose customers tend to research thoroughly before making a purchase. So if you're selling products or services that come under the FMCG category or, if your customers tend to make an instant decision to buy from you then we are definitely not the right marketing agency for you.
Recommendations are always a good place to start or you could search for an agency who specialises in your industry (just be aware they may well be giving similar strategies to your competitors...). A decent agency will take the time to talk through exactly what you're looking for as they'll want to be sure you are the right fit for them too. A first class, agency will not only tell you if they're not quite right for you but they'll point you in the direction of another company who can better serve you.
Marketing red flags
Coming soon!
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