In this video, I outline the best way to calculate a marketing budget for your MSP/IT business.
It comes downs to working out the average value of a client contract and also the conversion/close rate of qualified leads that turn into sales. With these two figures, you can get an idea of what a qualified lead is worth to your business.
For the example in the video we assume the average contract value is $36,000 over 3 years. Our conversion rate for closing leads is 33%. If we take 36000x0.33 we get a figure of almost $12,000.
That is how much a qualified lead is worth to your business. With this figure in mind, we can then decide on what our marketing budget should be.