Enter your yearly revenue and the percent of it you plan to spend on marketing, choose a way to split the money between channels or type your own shares, and the planner shows what each channel gets per year and per month. Print the table or copy it into your plan.
A budget set as a percent of revenue grows and shrinks with the business, which makes it easy to defend and easy to review. The risk is that revenue-based budgets shrink when sales dip, exactly when you may need more visibility. If your sales are uneven, set the budget from a typical year and keep a small reserve for the slow months.
Once you have the total, the split is the real decision. Each channel has a different speed and cost: ads can bring visitors this week, email works on people who already know you, and content takes months to pay back. A mix of fast and slow channels protects you if one of them stops working.
Treat the first split as a hypothesis. After a quarter, compare what each channel cost with the customers or leads it produced, and move money from the weakest to the strongest. Small, regular shifts are safer than large ones, and they give you data about what works before you commit more.
Watch for channels that look cheap because their results are hard to measure. If you cannot say where the customers came from, ask them. A short question at sign-up or at the till tells you more than a dashboard, and it makes the next version of this table better.
There is no fixed rule. Many small businesses start from a share in the range of 5 to 12 percent of revenue and adjust. The planner shows a rule-of-thumb range by stage: 10% to 12% for a startup, 8% to 10% for a growing business and 5% to 8% for an established one. Use your own margins and goals to decide.
Yearly marketing budget = yearly revenue x the percent you chose. Each channel gets that amount times its share, and the monthly figure is the yearly figure divided by 12. For example, $200,000 revenue at 8% gives $16,000 a year, or $1,333.33 a month, and a channel with a 25% share gets $4,000 a year.
They are example splits, not research results. Balanced spreads the money fairly evenly, Online-first leans toward ads and content, Local services puts more into events and local activity, and Shop leans toward ads and email. Choose Custom to use your own shares.
Because each share is a part of the same budget. If they add up to less, money is unassigned, and if they add up to more, you are spending more than you planned. Adjust the numbers until the total is 100.
No. It is a planning aid that divides a number you choose, and it does not know your market or your results. Check your plan against your cash flow before you commit to it.
Related: Ad budget calculator, ROAS calculator, ROI calculator.
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