Calculating SaaS Marketing Budgets

One of the most challenging aspects of marketing is one of the first steps - determining a budget.

There are really no hard and fast rules because each business is different.  When we work with clients to determine a budget, we look at a few factors.

  1. Revenue. This is obvious, but everything is calculated as a percentage of revenue to match the budget to the size of the business.
  2. Reach. Are you marketing locally only, nationally, or internationally?
  3. Expansion. Are you looking to break into new markets where you may not have brand awareness?
  4. Offering State. When you are in a very new industry, education may be required. Before Uber & Lyft, no one knew what ride sharing was and so they had to spend more on educating consumers.
  5. Aggressiveness.  If you are looking to gain 50% growth versus 5% growth, that should impact your budget.
  6. Website. Websites are still the center of much of your strategy. If it has not been rebuilt lately, it may be a sign of your overall marketing infrastructure and the need to invest in foundational marketing tactics.

Check out our article and explanation of the difference between Marketing versus Strategic Marketing.


Determining how much you should spend on marketing is hard.  We built this calculator to clarify the process.

Start with your revenue as the foundation for determining your marketing. Our calculations are based off a percentage of revenue.

Choose Your Industry

Your industry matters. Different types of businesses need to spend different amounts on marketing.

Reach is a huge impact to budget. Are you trying to reach people Hyper Local to International?

Are you currently focused in one market but looking to expand into new regions, cities or states?

How agressive do you want to be? Attacking the market and grabbing market share or holding position?

My product / service is a first mover or not very well known.

Begin selecting options to see your estimated budgeting.

Our calculator uses various benchmarks and our own experience to help you build an estimate.

Sign-up below to have us send you a detailed guide on how marketing budgets are determined overall and on specific channels.

If you haven't optimized for maximum conversion, then there is no point in spending on marketing or improving retention. Join our webinar covering the 10 Principles to Increasing Conversion.

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