BUY

The Cost Of Marketing A SaaS Start-Up

Proving marketing's value is crucial. With inflation and changing markets, buyers are thoroughly thinking through their purchases. Do you do the same with investing in your go-to-market?

Here's what marketing costs a SaaS start-up.

You Need To Invest Wisely

It’s easy to be impatient or downplay marketing. But great marketing gives your sales reps pipeline. Here's what you must keep in mind with investing in marketing.

Navigating uncertainty
Economic
Uncertainty

Whether chasing that first MRR, navigating a black swan churn, or keeping the lights on, any sort of money uncertainty means you can't rush into investments.

Scaling your business
Scaling Your
Business

You want to scale and scaling takes the right foundations. You want people to love the product as much as you do. Marketing is where you create that fandom.

You need marketing
Marketing Is
Needed

You know marketing is needed, but there's a difference between emails and ads vs. a proposition and go-to-market engine built by marketing.

Metrics matter for SaaS marketing
Metrics
Matter

Great SaaS marketing is about data, but you're unsure if clicks are something you should care about. You need to connect the bigger picture to tangible goals and KPIs.

Firefighting vs Strategic
Short v Long
Term

SaaS providers need to balance today's fires with what's in the distance - but tomorrow will become today. You need to find a way to sustainably generate leads.

Choosing SaaS Marketing Agency
Choosing
Agencies

Choosing a SaaS marketing agency or consolidating your existing teams is about ensuring every dollar counts. SaaS in-house experience matters, but it's hard to find. 

icon-54-focus
Scenario
Planning

You need to be able to pivot your go-to-market as forecasts change, meaning marketing must be agile and have multiple scenarios they can run growth plays using.

Tracking marketing spend
Budget
Tracking

When you assign money on go-to-market, you must be confident that the budget is being managed responsibly and with enough buffer to reallocate funds if needed.

Optimize GTM
Optimize
GTM

You want a performance management mindset where marketing works with sales to see the impact of their work and feeds their insights into your proposition.

ROMI
Showing
ROMI

Proving Return on Marketing Investment (ROMI) is crucial because if marketing creates dud leads at a high cost, you need to know and then change that.

quote

Companies using data-driven B2B sales-growth engines report above-market growth and EBITDA increases of 15-25%.

Sales Need Leads To Convert

A sales pipeline doesn't come from thin air. As you consider what to invest in marketing, think about how marketing feeds sales the leads that generate MRR.

The SaaS Marketing x Sales flywheel

Marketing
x
Sales
Flywheel

Enable

Marketing helps your buyers in the pipe, by using best practices and collaboration with sales reps to avoid the traditional marketing to sales “over the fence” handover

Enlighten

Great SaaS marketing is data-driven, and tracking who positively engages with your brand and leads to MRR is where you should focus resources for meaningful results

Engage

Marketing engages buyers in understanding why your product fits them, and overcomes objections through job-specific content so they’re ready for sales

  • Without investment, marketing, and collaboration with sales - prospects won't not appear at a consistent rate
  • Marketing touches every part of the journey - from researching when shortlisting vendors (Enlighten), and removing barriers to purchase (Engage), to closing deals with enablement collateral and automation (Enable)
  • While buyers enter the marketing x sales flywheel through different channels, marketing is the constant

Why Marketing Fails In SaaS Start-Ups

  • Founders can't let go of go-to-market, put inexperienced people in place, and chase fads
  • Marketing isn't seen as strategically valuable to the business - they're doers, not thinkers
  • Superficial marketing creates excitement but is without substance
  • Marketing isn’t bought into by leaders like the CEO, CPO, and sales organization
  • Marketing is siloed from the rest of the business
  • Marketing is seen as stop-start or running an advert
  • Sales dominate conversations based on one-to-one knowledge of buyers
What You’ve Likely Experienced

Old tricks, old dogs - SaaS marketing as all sizzle, none of the steak:

Buyers don't see your value
No understanding of buyers
Targeting everyone
Poor
branding
Sales-led
marketing
No marketing
strategy
No marketing
budgeting
No marketing
plan
No scenario
planning
Fluffy
KPIs
No project
management
Inflated, poor quality web traffic
Promotional
gimmicks
Bought
data list
Events without
leads
No cross-team collaboration
No buyer enablement
Poor sales
lead quality
Non-data-driven marketing
No reporting and ROMI
No competitive intelligence
No G2 review presence
No case
studies
Pay to win analyst relations
No Executive coaching
Jargon, jargon, jargon
No marketing team roadmap
No website roadmap

What’s Your Path Forward?

You've got two options: in-house or a SaaS marketing agency.

Marketing is an investment. Get it off right by mapping the work to build the marketing organization and the skills and experience to do it right.

Here's what it takes a SaaS start-up to get it right.

In-House Marketing

CMO ($130k)
Marketing Ops Manager ($85k)
Product Marketing Manager ($90k)
Marketing Campaign Manager ($75k)
Content Marketing Manager ($75k)
Digital Marketing Manager ($7Sk)

PLUS

SEO agency ($65k)
PPC agency ($65k)

PLUS

OPEX ($80k)
Marketing campaigns ($100k)
Marketing tech stack ($80k)

TOTALLING

$920k/year

SaaS Marketing Agency

PLUS

Web dev agency ($30k)
Brand design agency ($20k)
SDR agency ($75k)
BDR agency ($75k)

PLUS

OPEX ($80k)
Marketing campaigns ($100k)
Marketing tech stack ($80k)

TOTALLING

$511k/year

Want To Talk About Your Marketing Costs?

Every SaaS vendors needs to invest in its marketing. Knowing where to start isn't easy. That's why you should talk to me.

There will be no pitch, no sale, just the chance to connect and for us to help you on your way. Book a slot today.

James Milsom SaaS Marketing Advisor