How Much You Should Actually Spend on Ads (A Simple Formula)

Here’s a simple formula to figure out how much ad spend your business really needs.

First, it varies. But in most cases, I just look at your ticket price and start from there.

If your offer is $5,000, you should be comfortable spending $5,000 to acquire a customer.

And if that number makes you panic, you’re not ready for paid ads yet.

The Biggest Misconception About Ads

Most people think of paid ads as some kind of magical machine.

They imagine putting in $500 and getting $20,000 back overnight.

No medium on the planet works like that.

Not stocks. Not crypto.

Paid ads aren’t a slot machine. They’re a long-term system that needs data, time, and proper testing before you’ll see any meaningful return.

If you’re only willing to spend $700 for 30 days, don’t bother.

That’s not enough to generate data, optimize campaigns, or build momentum.

You’d honestly be better off putting that into your 401(k).

If your business makes under $25K/month, I generally don’t recommend paid ads, unless you can comfortably spend at least $2,500 to $3,000 per month.

Anything less than that, and you’ll end up frustrated and blaming the platform when the problem is simply budget and time.

The General Formula

Here’s a safe starting point:

Spend 12% of your profits on marketing.

If you have a brick-and-mortar business, add your rent percentage into that calculation.

That’s your ad spend range.

For example:
If you make $40,000/month profit and your rent is 10% ($4,000), then 12% of your profits ($4,800) plus your rent percentage gives you around $4,800/month or $8,000 total for marketing.

That’s a realistic number.

Ads are not magic. They’re math.

You need to spend enough, give it enough time, and test properly to get results.

If you’re not ready to treat it like an investment, don’t start yet.

But if you are, this is the formula that will keep you from wasting time, energy, and money.

My Offers:

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