People often want to know how much they should spend on marketing. There is no standard answer, but we do have some good rules of thumb we can use.

 

The 10-30-60 Marketing Rule says to spend 10 percent of your ad budget on untargeted marketing. Your ads should be aimed at everyone. The idea is to do a broad sweep across the public to find a few people who will become interested prospects.

 

Spend 30 percent of your budget on interested prospects. This is targeted advertising to specific opt-in lists, postcards to certain people in your industry, and mailings to people who have called or emailed for more information.

 

Finally, spend 60 percent on current and previous customers. People who have already bought from you are by far the most likely to buy again.

 

One of the Net’s biggest problems right now is there are so many people who are jumping on that it is easy to forget to market to our past customers.