HOW TO MANAGE A MARKETING BUDGET

Summary from the TLDR Marketing newsletter

Start by anchoring leadership on a range based on the 40% rule, where the budget is 40% of the company's growth target. Split the budget into 50-60% for headcount and 40-50% for working dollars, then align it with key KPIs like pipeline growth. Use a demand model to back into demo goals and allocate a budget for ads. Regularly engage with your CFO, balance trade-offs, and don't underspend, seeking additional funds from other departments if necessary. Treat the budget as a guideline and adjust if goals are met. A link to the demand model template is included in the post's comments.