What are you spending on marketing? What is the optimal marketing budget? Marketing drives revenue. For medical practices, marketing equates to new patients coming in the door. So how much should you spend on marketing? Many experts suggest you spend 5% on marketing—which covers the actual advertising expenses, print expenses, relationship marketing—and doesn’t include the price of the people who do the marketing. In our research, we found an even wider range. 
According to this article:
- The U.S. Small Business Administration recommends spending 7 to 8 percent of your gross revenue for marketing and advertising if you’re doing less than $5 million a year in sales and your net profit margin — after all expenses — is in the 10 percent to 12 percent range.
- Some marketing experts advise that start-up and small businesses usually allocate between 2 and 3 percent of revenue for marketing and advertising, and up to 20 percent if you’re in a competitive industry.
- A 2016 survey of 168 Chief Marketing Officers revealed that marketing budgets account for as much as 40 percent of a firm’s budget, with a median of 10 percent of the overall budget and a mean average of 12 percent.
Our experience: The more you spend on the right marketing efforts, the more you grow.
Yes, it’s that straightforward. If you’re providing excellent care (and we only work with clients who are!), more money spent on marketing means more new patients walking in the door. Especially because here at VCG, we are dedicated to making your budget go as far as possible by choosing the most efficient, targeted marketing and advertising efforts for your practice and overseeing them with a magnifying glass.
So how much should you spend?
It depends on your growth goals. How quickly do you want to grow? How many new patients can you accommodate each month? We help you take this into consideration when figuring out your marketing budget.
In general, we have found an appropriate budget for most of our clients is between 4-10% depending on their growth goals. And we have the results and statistics to show that this investment is worth it. (It’s why so many of our clients have been with us for years!)
Are you ready to invest in your growth? We can make your investment pay off.