Joe Dager
Business901
Fort Wayne, IN 46845
Phone: 260-438-0411

Website:http://www.Business901.com
Website:http://www.FundingYourNonprofit.com
Twitter:http://www.twitter.com/business901
LinkedIn: http://www.linkedin.com/in/business901
Email: jtdager@business901.com

1. Set preliminary budget based on tasks decided upon. 2. Estimate competitors' budget and adjust accordingly. 3. Prepare budget document with rationale of expenses. 4. Use percentage of Sales

The most common method is using percentage of sales. However, what happens if sales go
down? The problem you are trying to correct already has less money to begin with. However, it
is used time and time again. When using that method, I think many look simply at the industry
norm, which is a certain percentage. Take that percentage times your annual revenue. For
example:

Annual sales = $1,000,000
Marketing % = 7%
Annual Exp = $70,000
Monthly Exp = $5,800

After that simply take that number and split it up between, what we call
the Lead Generation trio: Advertising, PR and Referrals. Even that is
probably not that true, because we seldom count referral and PR into our
budget. I typically see a calendar with the major promotions scheduled
out for about 90 to 180 days and the next 30 to 60 days completed with
the smaller promotions. There will be a mix of radio, print, TV, direct
mail, displays, etc., most directed at gaining new customers. In recent
years, there have been better efforts at extending into our existing

customers and tailoring efforts in maintaining them. Further steps have been made towards
specific referrals programs developed. They have proven to be highly successful. I would like to
take you a step further.

In previous conversations, I have alluded to the Duct Tape Marketing method of Know, Like,
Trust, etc and in fact developed my Lean Marketing House with this column being the pillars of
the house. But what if you took your budget and developed around this pillar. Take your