Sales and Marketing Spending

Are you Spending Enough on Sales and Marketing?

Always a key question for any business leader is “how much should I spend on sales and marketing?” We researched 350 public companies in the software industry to understand the relationship between investments in sales and marketing and revenues.

The problem is that many companies expect to be able to grow without devoting enough resources to this critical expense area. They wonder why they can’t beat the competition consistently when they are being outspent. If it is true that you have to touch a prospect seven times before he becomes a customer then you have to have enough resources in sales and marketing to be able to do reach out to a prospect on a consistent basis.


If you want to see the high-level results of our research, click the button on the right to view the infographic. If you want to see how your company compares with others, contact us for detailed benchmarks.

Research Background

When we undertook this research, our belief was that most companies don’t spend the optimal amount on sales and marketing and more precisely, not enough. We looked at software companies in particular because we had a hunch they would tend to have a much heavier focus on the technology rather than getting it out to market. We suspect this would be especially true in the early stages.