How much money should I spend on Internet Marketing?

Author: JLB

Published On: August 10, 2015

Website Design, Search Engine Marketing, SEO, online advertising and more.

We are often asked what is the right amount to spend on Internet Marketing.  Also known as digital marketing.   Through the years, we have taken the time to do research on what is the proper investment, what you can expect and what are the benefits.  Most of all, how much money can you get back if you are investing in marketing online.

The most important thing for any small business is to realize that its not to expensive.  It is absolutely necessary.  If you survive on references and cold calls then you are surviving, not thriving.

Below is some great information to follow.   Our resources are (existing clients, Gartner, Marketing Sherpa and google) the following applies to your business and is a good average for most business models.

  • The average spend for digital marketing should be 2-4% of annual revenue.  $1M = avg of $2,500 a month
  • The average savings for digital marketing over traditional marketing is = 5-10%
  • Digital marketing averages a 5-7x revenue return over traditional marketing.
  • The average ROI for digital spend is 6-8% but can be higher.  This means if you spend $2,500 a month on $1M revenue you should see growth of $5,833 a month in revenue.

Digital marketing spend is as follows.   We will be doing all of these but less on social media because of your industry.

SEO marketing

In conclusion:

We wouldn’t recommend spending more than 10% of your gross revenue on digital marketing but 2-5% is the right mix for most small bsuiness budgets.  If you spend 2.5% ($25,000) you should obtain 6% sales growth ($60,000) on a $1M business.  Its necessary to watch the spend as the more you spend, doesn’t mean that you will get more than 6% growth.

Also, you will spend less with digital marketing with better returns than traditional marketing venues while improving customer satisfaction and loyalty through market awareness.

It’s remarkable working with the team that treats your business they would their own with drive, innovation, humility and a shared love of bringing great things to the wonderful Franklin & Nashville community.


RED DOG WINE & SPIRITS – Nashville Web Design


“In the search of looking high and low for a Ecommerce website design firm, we came across JLB. They are now like a part of our family and strive to do all they can to take our sales and growth to a whole new level. We recommend JLB to everyone we come across looking for a solution to their website needs.”


Chad, BOWADX – Franklin TN Web Design

“JLB has been the driving force  that has launched our company into the media spotlight, gaining us publicity through a broad cross-section of business related media including new apps and interactive activity for our clients. We are moving forward with our second web design with JLB and will continue to make them part of our team.”


John, The Perch – Brentwood TN Web Design

“I started with JLB when they first opened fifteen years ago, when they redesigned a website for me.  They are my go-to company for anything to do with web sites. These guys are professional, talented, creative and an energetic team. I will always go to JLB first for my web design work. Thanks JLB.”


Phyllis, Carneros Winery – Nashville TN Web Design

We were having problems with our online brand and digital marketing. JLB was great. Worked through it with us, created an amazing presence and business is great. The staff at JLB is fantastic too. Friendly and always there for you.


Life Line Repairs – Nashville TN Web Design

I and all of us at Sports & Entertainment Nashville TN have been thrilled with the website you guys did for us, and especially the professional service and communication you guys have shown.


Sports and Entertainment – Nashville Web Design

We interviewed several web design firms, but found that JLB’s talented team was the most creative, innovative, and professional. Choosing JLB has been a great decision! We are fortunate to have JLB be a part of the BMC Metalwork’s future as we continue to enhance our business.


Jimmy, BMC – Franklin TN Web Design

“There were a number of website design companies in Nashville that would have done an adequate job for our company. The difference was that JLB wanted to be our partner and has been for 11 years. STAR Physical Therapy has been blessed to have them as a teammate.”


Regg Swanson, STAR – Franklin TN Web Design