Typically companies are re-investing 10% of their gross revenue into marketing.

 

Your marketing budget depends on a variety of variables, including product-market fit and business objectives. If your target is to rapidly scale up, consider investing north of 50% of your revenue into marketing. 

MARKETING BUDGET = REVENUE TARGET / AOV) x COST TO ACQUIRE

You should reverse engineer your marketing budget based on your revenue objectives, average order value, and cost to acquire your customers.

Every marketing expense should be taken into account to create a marketing budget.

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A typical marketing budget includes the cost to create advertising collateral, media cost, technology cost, agency, freelancer or marketing-related human resources expenses.