How to set the right budget for inbound marketing?
Inbound marketing has become one of the latest trends in marketing online. It works perfectly whether you are marketing products or marketing services online. The purpose of inbound marketing is to attract the right visitors to your website, convert them into leads and then help close the sale.
You know that your company needs to utilize these online marketing techniques but you are not quite sure how to begin of how to budget for these costs. Inbound marketing agencies will handle most of the day to day activities but you should be as hands on as possible.
How To Budget For Inbound Marketing
One of the first things you must to when setting a budget for inbound marketing is to determine exactly what will be going into your inbound marketing campaign.
You cannot create compelling content for your customers is you do not know who they are. This is where buyer personas come into play. Your inbound marketing agency should do a thorough job of clearly defining who your best customers are.
Once you know who you are creating content for it is time to create that content. Your agency should have writers that are certified in the elements of inbound marketing. When they understand the inbound marketing process they can then create engaging content for each phase of the inbound process.
The content then must be effectively distributed throughout the Internet. Your agency will use a combination of blog posts, social sharing and other paid marketing avenues.
The Cost Of Inbound Marketing
Now that you have determined the pieces that make up an inbound marketing campaign it is time to figure out the cost.
As a rule of thumb your company should be spending a minimum of 2% of your annual gross revenue on inbound marketing. As an example, let’s say your company has annual revenues of $2 million. In this case your should allocate $40,000 a year to inbound marketing. If you want to grow more aggressively you can go up to 5% of your gross revenue.
The investment in an inbound marketing campaign can be substantial. However, the results are well worth it. Inbound marketing is the most efficient way to reach your customers and grow your business. It is one investment that will give your business it’s greatest return.