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 endeavor”
01:27 – It all comes down to experimentation when you’re starting off
01:59 – Keep doing the experiments until something works and pays off
02:05 – Stop experimenting when you’ve found a channel that’s working
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 on experimentation.
Marketing should be a cash flow positive endeavor.
Do experiments consistently and be sure to track it.

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