How much should you spend on your nurture mailings?
Over the years, we have developed a simple rule of thumb: we recommend spending 1/1000 of last year's revenue on nurture marketing each month.
So divide your total revenue by 1000 to get the amount you should spend.
Here's a simple chart to help with the math...
| Annual Revenue | Spend This on Nurture Each Month |
| 50,000 | 50 |
| 100,000 | 100 |
| 500,000 | 500 |
| 1,000,000 | 1,000 |
| 5,000,000 | 5,000 |
Can you spend more? Of course!
You might very well want to do that if you are trying to grow your business rapidly.
But this is actually a reasonable amount to spend on a nurture program, and this simple formula makes it easy to estimate costs.
Grow your business by 10-20%
What kind of results can you expect?
We typically see businesses increase revenue by 10 to 20%.
Why? Because nurture programs plug the holes in your sales and marketing. Following up happens automatically. You are putting systems in place to:
- Stay in touch with customers and get them to buy more often.
- Educate leads proactively so they move through your sales cycle faster.
- Reach out to prospects to generate leads.
- Ask for referrals (without actually having to ask).
Quite simply, you do a better job of building and maintaining relationships with the people who matter to your business.
The result is that you can increase revenue with only a small outlay.
How long does it take to see results?
Marketing theory says that on average you need 7 touches before you can make a sale.
So consistency is important. Reaching out to people 2 or 3 times a year is not enough. You need to be in front of them on a regular basis, month in and month out.
When you do your nurturing consistently, you will build a strong and healthy business that will be a pleasure to run.
