How Much to Spend on Marketing When You’re First Starting | Ep. #219

In Episode #219, Eric and Neil discuss how much you should spend on marketing when you’re first starting out. Tune in to find out the importance of establishing that budget before you begin and why you need to stick with what works. Time Stamped Show Notes: 00:27 – Today’s topic: How Much to Spend on Marketing When You’re First Starting 00:54 – Come up with a budget you’re comfortable with when it comes to experimentation 01:20 – “Marketing should be a cash flow positive endeavor” 01:27 – It all comes down to experimentation when you’re starting off 01:59 – Keep doing the experiments until something works and pays off 02:05 – Stop experimenting when you’ve found a channel that’s working 02:17 – Some companies have a 3-year LTV 02:33 – “Experiment until you have a channel that works, then scale up and stop the experimentation once the channel caps” 03:01 – Sean Ellis’ blog post on setting growth experiments 03:09 – Brian Balfour’s blog post 03:22 – Do experiments consistently and track it 03:38 – Set the budget at the beginning 03:52 – You are setting a budget which is a percentage of your growth—you can scale it over time 04:34 – Look at your experiment and company as a whole; what is going to benefit in the long run? 05:05 – That’s it for today’s episode! 3 Key Points: Create a budget, at the start, that you’re comfortable spending on experimentation. Marketing should be a cash flow positive endeavor. Do experiments consistently and be sure to track it. Leave some feedback: What should we talk about next? Please let us know in the comments below. Did you enjoy this episode? If so, please leave a short review. Connect with us: NeilPatel.com Quick Sprout Growth Everywhere Single Grain Twitter @neilpatel Twitter @ericosiu Learn more about your ad choices. Visit megaphone.fm/adchoices See omnystudio.com/listener for privacy information.