How Much Should You Spend On CBD Online Marketing?

We have stepped into 2021 and it’s been a couple of months. But what vape businesses expect is more growth and success.

And one of the important questions that we were asked every day is

How much should I spend on CBD marketing in 2021?

The answer may surprise you..

There are actually two ways you can decide how much you should spend on CBD online marketing.

How Much You Must Spend On Your Marketing Budget?

The first way is super easy and a surely lazy way which is doing something like taking 10% of the revenue you made last year and make the CBD marketing budget.

For instance, if you made $100,000 then the marketing budget for your CBD brand for 2021 should be $10,000.

But this way calculating the marketing budget isn’t lazy, but also limits your potential. Think about it, what if you are able to invest $20,000, $30,000 or even $50,000 in your marketing and that leads to a 10x growth?

While this may be risky, the right CBD digital marketing company are going to show you how you can play safe by taking proper approach to scaling your CBD business.

Formula to calculate your spending on marketing

Let’s dive in by just giving the formula that we like to use for marketing budgets.

Marketing Budget = CAC x Customers you want

Here, CAC stands for Customer Acquisition Cost and lot of this post will be focused on how to determine the max customer acquisition cost.

We are going to help you accomplish this by asking some questions and giving you some things to think about.

This will help you figure out how much you must spend on the marketing in 2021. Let us get started.

Top Questions To Help You Calculate Your CBD Marketing Budget

Question 1- How Much Time Are You Willing To Commit?

This is an essential question to ask yourself because if your time is limited then you are going to need to hire someone to do this for you.

Hiring someone might be your first expense. Now, this isn’t factored into the CBD online marketing formula we mentioned. So, when it comes to hiring, you have some options:

You can hire an employee part-time or full-time, which for someone with 1-3 years of experience, you are looking at $20-30 per hour.

You can hire a digital marketing company and get the best experts for assistance.

Question 2- What Is The LTV Of Your Customer?

LTV stands for Life Time Value which is just the total amount of revenue you receive from the customers over a lifetime.

It is important to know because LTV will determine how you can scale the CBD budget. Because the higher the LTV, the higher you can spend and the faster you can grow.

Question 3- How Many Times Will The Customer Buy?

What is expected usage of your product? Will it be a one-time purchase with no cross-selling like stationary bike?

Is it a monthly product that will recur every month? Or Is it a product requiring high usage rate and will be reordered?

Finally, this is what we have come up with, hope it helps you.