Let’s talk about your dentist budget for a moment. Whether you are starting out or have been in practice for years, one topic that can confuse dentists is how much money should be allocated to marketing.
For instance, is there a universal number you can rely on? Does it vary between dental practices?
As a small business, it will help if you think of marketing as an investment and not as an unnecessary expense.
Truth is, marketing will help your dental practice gain traction but it may take time (this is especially true if you are just starting out).
Either way, a top concern of any owner-dentist is how much of the practice budget should go toward marketing expenses.
Calculating your dental marketing budget
According to the US Small Business Administration (SBA), small businesses should spend 7 to 8 percent of their revenue on marketing.
To add to that, a survey conducted by Wealthy Dentist shows that 54% of dentists reported spending $1,000 or more a month on marketing, 22% spend over $5000, and 7% do not spend anything.
The most practical amount dentists should spend on marketing is at least 10 percent of their expected annual gross revenue. However, the ideal amount is between 20 and 30 percent.
Now, if you don’t have drastic competition and possess a captive market, you may only have to spend around six to eight percent (but that’s highly unlikely).
Also worth noting, during times of slow growth, you will have to increase your dentist budget to accommodate more for marketing spend.
While it may sound counter-intuitive to some, upping your marketing spend during times of slowdown can help your practice meet its monthly production goals.
What to keep in mind about your dentist budget
Keep in mind, your marketing efforts will take time to deliver favorable results. However, the sooner you start, the sooner you will see results.
More importantly, before you finalize your dentist budget, you should ensure that your practice can accommodate an increase of patients.
Plus, it’s important to periodically evaluate the results of your marketing outreach and make enhancements to key components of your campaign in order to get the most out of your marketing budget.
If you don’t know where to start or rather have the experts guide you through this, visit www.conversionwhale.com or fill out the form below.