For years, business leaders have heard the old adage: spend 10% of your revenue on marketing. It’s a neat, easy rule, but in reality, it’s not so simple. The right number depends on your size, stage of growth, and industry. And even more pressing than how much to spend is the question of where to spend it. Should you invest in an outside agency to get immediate expertise, or should you hire in-house and build long-term capability?
That’s the dilemma facing many small business owners today: marketing feels essential, but budgets are tight and the wrong move can be costly.
In this episode of Endless Customers, I sat down with Katie Coelho, IMPACT’s VP of Services, to dig into this exact problem. Katie explains why the “10% rule” doesn’t fit every business, why outsourcing can be risky, and how hiring in-house often leads to stronger ROI. Most importantly, she shares practical steps leaders can take to make smarter marketing investments that actually move the needle.
Marketing spend is notoriously hard to measure. Many small businesses make the mistake of:
Signing on with agencies that promise growth but deliver generic, expensive services
Overspending on PPC campaigns or display ads that rarely pay off
Spreading resources too thin across too many channels
Katie cautions leaders: “For small businesses with limited resources, poorly spent funds can be debilitating.”
Katie urges business leaders to be judicious. While it’s tempting to sign on with an agency and hope that they’ll deliver the growth you’re looking for, agency services come with a steep markup, often for things you can do yourself. And if you’re spending on PPC ads or banner ads that have limited upside, you may feel like you’re throwing your money away.
The more profitable path is to take as much of your marketing in-house as possible.
"If you're investing internally in people, we've found, especially for small businesses, you’re going to see more long-term success," Katie says.
While it can feel risky to take on new employees, Katie says it’s the better way. She advises business leaders to hire a team member to focus on marketing as soon as possible. "If you invest those marketing dollars in a marketing hire,” she says, “you will have more control over what your ROI will actually look like."
We hear the same thing from business leaders all the time: My agency doesn’t seem to get my industry. The content they produce doesn’t really sound like me.
With an in-house hire, that concern evaporates. A new marketing hire, says Katie, “is going to get more ingrained in your business and the needs of your business and your buyers more than any agency ever really could."
Katie recommends starting as soon as possible:
Hire a dedicated content manager, even if it feels like a risk.
Train them in the Endless Customers System so they know exactly how to create content that builds trust.
Focus their efforts on producing content that answers buyers’ questions, not vanity campaigns.
This investment, Katie says, is what sets small businesses up for sustainable growth.
If you’re wondering how to move away from expensive agencies and build an internal marketing capability that actually drives ROI, IMPACT can help. We’ve trained hundreds of small businesses to hire, onboard, and coach their first marketing hires, giving them the confidence and skills to own their growth. Let's talk!
Katie Coelho is IMPACT’s VP of Services. With more than a decade of client and management experience, Katie ensures the IMPACT team is set up for success by following the right processes and best practices.
Connect with Katie on LinkedIn
See how IMPACT can help your business improve the way you market and sell
How much should my small business spend on marketing?
While 10% of revenue is often cited as a benchmark, many small businesses start with 2–5% depending on growth stage and priorities. Your spend should reflect not just revenue but also your goals—whether you’re focused on brand awareness, lead generation, or launching a new product. Tracking results early can help you adjust the budget as your business grows.
Is it better to hire in-house or outsource to an agency?
For most small businesses, in-house hires are more cost-effective long-term. Agencies can be expensive and may not fully capture your voice or industry, and communication can sometimes slow down strategy execution. In-house team members, even one or two, give you consistency and deeper understanding of your audience.
When is the right time to make my first marketing hire?
Katie advises doing so as soon as you can. The earlier you bring marketing in-house, the faster you’ll gain control over ROI. Even a single dedicated hire can help you establish a consistent content and lead-generation process that scales with your business.
What if I can’t afford a full-time marketer yet?
Consider a part-time role or a hybrid hire who can take on marketing alongside other responsibilities until your budget grows. Freelancers or contractors can also fill gaps for specific campaigns or expertise, letting you maintain momentum without a full-time commitment.