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What is a good benchmark to measure to determine how much a SaaS business should invest in marketing? I've read 10%-40% of your forecast annual recurring revenue if you can afford that. I'm searching to see if anyone agrees, disagrees, or has other calculating advise. 

  • JH

    Joshua Ho

    over 4 years ago #

    Every business is different and it depends on your situation. How much cash in the bank? What is that budget going to give you?

    For example if you are investing in content marketing that would take a longer time to see results. If you are talking about advertising budget you can see how fast it takes to get results. How much inputted nets how much out... and how long does that take? (Pre-payment contracts, month to month)

    I like setting a specific amount for my marketing budget say... 10k over the next 5 months or something like that. Then look at how it performs in regards to revenue, then adjust as needed.

  • SC

    Samantha Cuellar

    over 4 years ago #

    Hey Joshua,

    Thanks so much for your comment! I'm in the process of finalizing an ebook about calculating budget for SaaS marketing and sales. I used data such as ARR and how much companies are willing to spend to acquire customers (CAC) to determine what their budget should be. I'm thinking my next topic will be similar to your comment, the returns in investing in content marketing versus PPC etc. and what else saas owners should expect to get from the marketing budget they put in place.

    I really appreciate you responding.