"How much should I spend on marketing?" is one of the most common questions we get from small business owners. The honest answer: it depends. But there are useful benchmarks and frameworks that make the decision less arbitrary.

The Standard Benchmarks

Industry research consistently points to these guidelines:

  • Established businesses (maintaining market position): 5–10% of gross revenue
  • Growth-focused businesses (actively expanding): 10–20% of gross revenue
  • New businesses (building brand from scratch): 20–30% of projected first-year revenue

So a Kitsap County business generating $400,000/year should typically spend $20,000–$40,000 on marketing annually — roughly $1,700–$3,300/month. That feels high to many small business owners. But consider: that includes everything (agency fees, ads, content, photography, tools, etc.).

The More Important Question: ROI

Percentages are a starting point, not the goal. The goal is return on investment. Marketing spend is only too high if it costs more than it generates. A plumber spending $2,000/month on marketing that generates $15,000/month in new jobs has excellent ROI — even if that 2k exceeds the "5% rule."

You can't optimize this without proper tracking. Know your cost per lead by channel. Know your close rate. Know your average job value. Then the math tells you what to spend.

How to Prioritize When Budget Is Tight

If you have $500–$1,000/month to work with, here's the priority order for most Kitsap County service businesses:

  1. Google Business Profile optimization ($0 + time or ~$300/mo managed) — Highest ROI channel for local visibility. Free tool, enormous impact.
  2. Review generation system (~$0–$200/mo) — Compounding returns. Every review works for you indefinitely.
  3. Basic local SEO ($500–$750/mo) — Citations, on-page, GBP management, rank tracking.
  4. One video asset ($1,500–$3,000 one-time) — A single good brand video works for 2–3 years.
  5. Email marketing to existing customers (~$50–$100/mo for tools) — Highest ROI channel for repeat business.

What to Cut When You're Trimming

  • Cut: Advertising on platforms where you can't track results
  • Cut: Social media management that isn't generating leads
  • Keep: Anything with measurable, positive ROI
  • Keep: Activities that compound (SEO, reviews, email list)
  • Pause, don't eliminate: Channels that might work better with better tracking

The Budget Mistake Most Businesses Make

Spending on marketing before fixing the conversion problems. Paying for ads or SEO that drives traffic to a website that doesn't convert, a GBP with 4 old reviews, or a phone that isn't answered consistently. The marketing "doesn't work" — but the problem isn't the marketing, it's the conversion infrastructure.

Fix the funnel before you pour money into the top of it. Start with a free audit → to see where your biggest gaps are.

Buzz Cue — Kitsap County marketing agency. We help local businesses spend their marketing budget where it counts. Talk to us →