What percent of business revenue should i put toward advertising?

Question

What percent of business revenue should i put toward advertising?

Answer 1

Hi. Good question.

Well, from accounting's point of view and terminology it is specified that an average of 20% of sales revenue should go on advertising/marketing efforts to achieve a healthy growth of your business. Other than that, it depends on what business do you run, and what other costs you have.

For example, do you have an office to maintain, do you need to pay bills, salaries or commisions. All these correspond in making up that margin accordingly. If you are able to use around 20% though, you should be fine.

Hope this helps