How Much Should You Spend on Marketing? (Spoiler: Probably More Than You Think)
One of the most common questions we hear from small business owners and nonprofits is:
“How much of my budget should go toward marketing?”
It’s a fair question—because let’s be real, marketing can feel like a money pit if you’re not sure what you’re doing. Do you spend big and hope for the best? Or play it safe and risk being invisible?
We did some digging (and we’ve lived this for 17+ years), and here’s what we found:
The Research-y Stuff
According to the pros at HubSpot, M&T Bank, and a handful of industry studies:
Small businesses should budget around 5–10% of revenue for marketing.
B2B companies often spend less (2–5%) since their customer base is narrower.
B2C companies (especially retail, restaurants, and lifestyle brands) typically need more—closer to 7–10%.
Startups and nonprofits? Buckle up. You may need 8–12%+ to actually get noticed in those crucial early years.
And according to a Wall Street Journal report, even the big guys are spending around 7.7% of revenue on marketing in 2024. So if they’re doing it, you can bet your small business should be investing, too.
But Here’s the Thing…
It’s not just about how much you spend. It’s about where you spend it.
You can throw 10% of your revenue at random Facebook ads, poorly designed flyers, and a cousin’s “free” logo design… but if there’s no strategy, you’ll just end up frustrated (and broke).
That’s where we come in. At Red Tornado Collective, we’re all about:
Building your brand from the ground up (name, logo, website, social, swag… you name it).
Making sure every dollar works harder for you.
Keeping your message consistent so customers actually remember you.
Our “Aggressively Helpful” Take
Here’s our honest advice:
If you’re brand new: Lean higher. Your job is to make noise and be seen.
If you’re established: Stay steady but be smart. Fine-tune what’s already working.
If you’re coasting on “word of mouth”: That’s great… until it isn’t. Word of mouth doesn’t scale. Marketing does.
So instead of asking “How little can I get away with?”- start asking:
“How much do I want to grow?”
Final Word
There’s no magic percentage that fits every business. But the data doesn’t lie: investing in marketing is one of the smartest moves you can make if you want your business (or nonprofit) to thrive.
And hey, if you’re tired of playing budget roulette, let’s chat. We’ll help you figure out a plan that fits your goals, your revenue, and your sanity. 🌪️
Because marketing doesn’t have to be scary - it just has to be strategic.