How to Calculate Your Marketing Budget

On average, Lao Rumor charges $100 to acquire a new member. If we spend $4,500 on marketing for the month of January, that will bring in 45 new members. That's based on historical data set number one and two. Data set number three is how much does it cost our business to acquire customer? And so when we do that math, let's say we come up with $100. We say perfect. That is our average dollar per member. Therefore 45 times 100, if we can continue to hit our historical averages of $100 customer acquisition costs, well, that means if we spend $2,000 more than what we would have spent otherwise. So