Budget for Marketing … Or Die Tryin’!   April 5, 2007

April 5, 2007

Recently a friend of mine ramped up to invest in a new website application.  However, it wasn’t really a new project rather one with dozens of major competitors.  

His development budget was realistic, his drive was impressive, his operation plan was on par for success and his marketing dollars seemed enough.  $40k sounded like it would do the job.

Then he did something very smart.

He dug deep into his competition and discovered that their marketing budgets ranged from $500k to $1mil a year.  So, in order for him to realistically compete in the same space $40k was only a drop in the bucket.  $40k would get him going but he’d struggle massively to launch.

 Lesson learned … Digest (info) before you invest (cha-ching$$).

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