Let me confess that I have no idea. And, let me tell you why.
Assume that you sell to other businesses. They may find you through your salesperson, a trade show, or through the internet. You may communicate with a Skype call, see them in person or send them a link to a YouTube video. What is working?
The critical piece is to measure activities and results. Let’s talk about a trade show. Is it profitable? How many people come in? How many leads come through? What sales did you get? How could you make it more successful next time?
Sales is a manufacturing process that you can flowchart and measure. The more you systematize the process, the more successful your sales people will be. They need clarity in expectations and training about how to sell and how to sell your product or service. Focus on your best sales people and figure out what they do well and train everyone else to do that, too.
What percentage of your revenues will you allocate to sales expense? It is not a mystery. You really can measure it. Set expectations, measure results. Evaluate the trend. (percentages!!!!)Do it again. It won’t be perfect, but it will continue to improve.
Next up-marketing expense. Like to weigh in on cost of social media? Send me your thoughts this week.