#5 – Good Marketing is NOT an Expense

#5 – Good Marketing is NOT an Expense

Yeah, the IRS lets you write it off – and that’s a good thing. So, from an accounting and tax perspective, marketing is definitely an expense.

But from a business perspective it should never be. Good marketing must be looked at as an investment – money spent to attract customers and increase sales.

The reason most small and medium sized businesses don’t look at marketing as an investment is that they have no clue what the return on investment (ROI) is for their marketing campaigns. Money gets spent, sales come in – so executives assume it must be working. But, staking your business on what you or your employees think, feel, guess, or have a sense of what may be happening isn’t something you really want to do.

To know your ROI, you’ve got to do a great job of tracking and analyzing the results of your marketing. You need to track not only expenditures, but offers, leads, sales, and frequency to get a handle on just how each marketing dollar is performing.

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