Generally, businesses dedicate 7-10% of their overall revenue to marketing each year, which can include inbound and outbound marketing channels. If your company generates $2 million in annual revenue, for instance, you will likely set aside $140,000 to $200,000 for marketing that year.
A range of factors will influence how you use your marketing budget.
Many companies, for instance, recognize the effectiveness of inbound marketing channels, as well as digital marketing channels. Did you know, for example, that businesses using inbound marketing save almost $15 for every customer they acquire?
That's why companies dedicate most of their marketing budget to inbound marketing.
Remember, most SMBs working with an inbound marketing agency invest $2500 to $12,000 per month — or $30,000 to $144,000 per year — while SMBs managing their inbound marketing strategy in-house spend $20,000 per month — or $240,000 per year — on inbound marketing.
For your business, facts like these can introduce even more questions about inbound marketing pricing, like should you partner with an agency or build an in-house team? That's why this guide not only shares inbound marketing prices but also explains and compares your inbound marketing options.
Keep reading to learn more about how much inbound marketing costs!
If you're looking for custom inbound marketing pricing, WebFX can create a custom proposal for your business. With our impressive client recommendation score (it's 488% higher than the industry average), you can trust our team to provide a thorough and transparent pricing proposal.
Contact us online or call us at 888-601-5359 to request your free, no-obligation proposal!
Searching for an inbound marketing agency that can deliver real results, like leads, sales, and revenue, and stellar customer service, plus transparent inbound marketing pricing? Talk to WebFX.
With custom strategies, hands-on account managers, and advanced artificial intelligence tech, we've helped our clients generate more than $2 billion in revenue and over 6 million leads in the past five years.
We're ready to help your company do the same.
A few factors influence how much inbound marketing costs, including:
The most influential factor on inbound marketing's pricing is whether you manage your strategy in-house or with the help of an inbound marketing company. An internal marketing team is almost always more expensive than an inbound marketing agency because of employee compensation and benefits.
How your business approaches this cost factor will depend on your company.
Some organizations, for example, have at least one in-house team member that focuses solely on marketing initiatives. Others don't. Instead, the business owner works directly with the inbound marketing agency to follow their company's campaign.
Skills and experience matter when it comes to the performance of your inbound marketing strategy. Hiring an in-house team member with only a few years of experience won't bring the same results as working with someone at an agency with five or more years of experience.
If you decide to manage your inbound marketing in-house and focus on hiring people with five or more years of experience, you can expect significant increases in your inbound marketing costs. Generally, you won't see the same price increase when working with an inbound marketing agency's top talent.
Either way, experience is essential when it comes to getting the best results from inbound marketing.
Host your family's next holiday dinner, and you'll see your work increase for every dish you add to the menu. The same policy applies to inbound marketing strategies. The more strategies you use, the more time you'll need to set aside.
Whether you manage your inbound marketing internally or externally, you will see a price increase.
Your inbound marketing costs will increase faster if you manage your inbound marketing in-house. Remember, internal management costs more than outsourced management — almost $100,000 more annually.
Ramp up your inbound marketing efforts, and you will need to invest more in inbound marketing.
For example, if your business takes an aggressive approach to pay-per-click (PPC) advertising by launching more campaigns, you will need to set a larger ad spend. If you don't, your campaigns won't have realistic budgets or bids, which will result in them underperforming.
While your company doesn't have control over other inbound marketing pricing factors, like in-house management costs or inbound marketing agency prices, you can influence the aggressiveness of your approach.
Unfortunately, you can't walk into the office one day and start an inbound marketing campaign. You must answer some critical questions first, like who will even build and manage the campaign? This question generally leads to another: Should I use an agency or stay in-house?
A variety of factors will influence your decision.
That's why this guide includes a 360-degree comparison. Besides looking at the difference between an inbound marketing agency's pricing and the cost of maintaining a full-size in-house team, the following table also considers the pros and cons of internal vs. external management.
Check it out!
$240,000 / year
$30,000 - $145,000 / year
Software and tools
Learn more about the unique advantages and disadvantages of each option:
Keep reading for a breakdown to the pros and cons of managing your inbound marketing in-house:
The benefits of managing (and paying to manage) your inbound marketing internally include:
The disadvantages of managing your inbound marketing strategy entirely in-house include:
For many SMBs, it's difficult to justify the cost and requirements of a full-size marketing team. That's why many businesses opt to have a single marketing team member and support that team member with an inbound marketing agency.
Keep reading for a breakdown to the pros and cons of partnering with an inbound marketing agency:
The advantages of managing your inbound marketing strategy with the help of an agency include:
The disadvantages of using an inbound marketing company include:
An inbound marketing company offers lots of advantages, especially to SMBs. That's why many businesses opt to partner with an inbound marketing agency because an agency can provide the resources and skills your business needs to make inbound marketing a success.
Hiring an inbound marketing agency or building an in-house marketing team is a tremendous decision. Your choice will depend on factors unique to your business, like your marketing budget, your marketing goals, and more.
The following questions, however, can help you find your answer sooner:
If you have questions about which is the better option for your business, you can always reach out to one of our experienced strategists. Just contact us online or give us a ring at 888-601-5359 to chat about your company and marketing goals!
Are you looking to improve the performance and return on investment (ROI) of inbound marketing?
With inbound marketing services from WebFX, your business can gain access to a complete marketing team that includes digital marketers, social media specialists, web developers, and more. Plus, you can get the results you want, as demonstrated by our impressive client retention rate of 91%.
Get your proposal by contacting us online or calling us at 888-601-5359 today!