What percentage of revenue do growing companies spend on marketing according to the clip?

Phil RisherPhlash Consulting · No. 1 Digital Marketing Consulting Company For $1m-10m Home Service Businesses 🚀

Saying you want to grow is easy. Structuring your growth is where most businesses fall short #shorts

11 Mar 2025 · 1 min

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0:36

A short YouTube clip by Phil Risher offering practical growth advice for businesses: use percentage-based budgeting, allocate 3–10% of revenue to marketing when growing, and measure return (ROAS, customer acquisition cost, new customer data) to know whether spend is effective. Emphasizes having a clear budget and tracking performance rather than vague spending.

Questions this video answers

3–10% of revenue.

Chapters

When it comes to growth, you need to be percentage based. Budgets have a structure of how you're going to grow. It's easy to say I want to grow, but from a marketing perspective, companies that are growing are spending 3 to 10% of their revenue on marketing. They're deploying it effectively by tracking their return on ad spend and what's generating real return. If you're thinking about I'm ready to grow, you need to have a game plan with a budget. That way you can give yourself permission to grow and utilize the funds to help you scale the business. And working with a company that pull your return on ad spend data and give you your customer acquisition cost and new customer data. But you know if it's working or not because a lot of you are just okay, I have my budget in here. I'm spending 2,3000 doll month. But I don't know if it's working and I don't want to change. It's a big pain. Those are the two big things. Have the budget, make sure it's working.