How much of your revenue should you spend on marketing?

Most small SaaS companies I meet feel frustrated by their slow growth. I’m not surprised when I find out how little they spend on marketing.

So, how much of your revenue should you spend on marketing?

In this short blog, I’ll break down the recommended marketing budgets, whether you are revenue-generating or backed by funding.

But before I get into that, I need to remind you of our upcoming SaaS marketing workshop that me and Jamie (ex-Cognism) are running.

You’re invited: How to create a SaaS demand gen campaign on a small budget – Workshop

Find more info and RESERVE YOUR SPOT here.

What you’ll learn:

✅ What is demand gen, and why is it so powerful for SaaS brands?
✅ How to create a demand generation strategy and implementation plan
✅ Example of real-world successful demand gen campaigns

📅 Date: Wed 5th Feb
⏰ Time: 2 pm BST (60 mins)
💰 Cost: £0

…Okay, back to this week’s tip about budgeting:

For Revenue-Generating SaaS Businesses

If your SaaS business generates revenue, a standard marketing budget is 5%-10% of your annual turnover (based on research from SaaS Capital and Gartner).

Example:

• Annual Turnover: £2,000,000
• Marketing Budget: £100,000 to £200,000 per year

Where you fall in this range depends on your goals:

• Expanding into new markets or accelerating growth? Allocate closer to 10%.
• Focused on retention and steady growth? Stay around 5%.

This budget typically covers:

• Paid advertising (Google Ads, LinkedIn)
• Content creation (blogs, videos, case studies)
• SEO and marketing software
• External agency costs

💡 Note: This budget does not include salaries or costs for internal marketing hires.

For Funded Startups

If your business has secured funding and your product is already built, your focus should shift to growth. Marketing is critical for generating awareness, leads, and traction.

A common recommendation is to allocate 20%-40% of your funding to marketing.

Example:

• Total Funding: £1,000,000
• Marketing Budget: £200,000 to £400,000

Suggested Breakdown of a £200,000 marketing budget:

1. Paid Ads (Google, LinkedIn): £60,000
   Quickly generate awareness and leads through highly targeted ad campaigns.
2. Hire a Full-Service Agency: £60,000
   Partner with an agency like Rocket SaaS to manage your entire marketing strategy. We’ll handle:
   •  Creating high-quality content like blogs, videos, and case studies
   •  Designing and launching lead magnets and landing pages
   •  Managing and optimising LinkedIn and Google ad campaigns
   At £5,000 per month (£60,000 annually), you’ll have a complete marketing solution without the cost of building an in-house team.
3. Partnerships & PR: £40,000
   Build credibility and visibility through strategic partnerships, influencer collaborations, and media outreach.
4. Exhibition Budgeting: £40,000
   Exhibitions are a powerful way to generate leads and build brand awareness, with costs covering booth design, promotional materials, team travel, and essential follow-up activities to maximise ROI.

Plan Your Marketing Budget for 2025

Investing in the right marketing strategy is essential for scaling your SaaS business. Whether you’re focused on rapid growth or steady expansion, aligning your budget with your goals is the first step to success.

If you want an expert team to handle everything from ads to content and lead generation, Rocket SaaS offers a complete marketing solution for the cost of a single hire.

Book a SaaS marketing strategy call with me, and let’s discuss how to scale your business in 2025.

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By Ryan James

Founder @ Rocket SaaS