Allocating a distinct percent of sales earnings is among the premier methods for constructing a marketing budget. The common allocation usually ranges among 9 12% of the yearly budget, while the smallest businesses may go as low as 2%. If a business is launching a new product or service, ads and publicity needs are better, so the percent will increase. The main potential to using a percentage of sales is that the marketing budget will augment, or cut back, with the sales earnings of the agency.
The marketing budget won’t ever spin out of manage and expend sales earnings.