If you are a small business owner or self-employed professional, the most important thing for you to understanding about setting a marketing budget is that all money spent on marketing should be “risk capital”.
By “risk capital”, I mean money you can afford to lose without it keeping you up at night…money you do not need to pay the mortgage…money that, if you lose it all, it won’t hurt you financially or have a big negative impact on your life.
Marketing is like the stock market and gambling in this way: you can make money, but you can also lose money.
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In all three endeavors, there is no guarantee you will make money.
In fact it is quite possible in all three areas (though least likely in marketing) to lose all of your money