Mar 7, 2017
In Episode #219, Eric and Neil discuss how much you should spend
on marketing when you’re first starting out. Tune in to find out
the importance of establishing that budget before you begin and why
you need to stick with what works.
Time Stamped Show Notes:
- 00:27 – Today’s topic: How Much to Spend on Marketing
When You’re First Starting
- 00:54 – Come up with a budget you’re comfortable with when it
comes to experimentation
- 01:20 – “Marketing should be a cash flow positive
- 01:27 – It all comes down to experimentation when you’re
- 01:59 – Keep doing the experiments until something works and
- 02:05 – Stop experimenting when you’ve found a channel that’s
- 02:17 – Some companies have a 3-year LTV
- 02:33 – “Experiment until you have a channel that works, then
scale up and stop the experimentation once the channel caps”
- 03:01 – Sean Ellis’
blog post on setting growth experiments
- 03:09 – Brian Balfour’s blog post
- 03:22 – Do experiments consistently and track it
- 03:38 – Set the budget at the beginning
- 03:52 – You are setting a budget which is a percentage of your
growth—you can scale it over time
- 04:34 – Look at your experiment and company as a whole; what is
going to benefit in the long run?
- 05:05 – That’s it for today’s episode!
3 Key Points:
- Create a budget, at the start, that you’re comfortable spending
- Marketing should be a cash flow positive endeavor.
- Do experiments consistently and be sure to track it.
- What should we talk about
next? Please let us know in the comments
- Did you enjoy this episode? If so, please
leave a short review.