How to allocate budget to various sales and marketing channels when starting up? The idea is to test and try various channels to see what works and what doesn’t? With limited budget, how can we go about a plan?
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Hello great question
when starting out with a limited budget, its best to test small across 2-3 channels
for example, organic social media, email marketing, and one paid ads platform like metal or google
track which channel brings the best engagement or conversations, then gradually increase budget there. Always focus on data
even $5-$10 daily tests can give useful insight before scaling.
Hi @FeatureDe
With a limited budget, the key is to avoid spreading your money too thin. Before you spend anything on ads, make sure your “free” foundation is solid. This means setting up your abandoned cart and welcome emails and optimizing your product pages to convert. Focus your free efforts on one organic social media channel where you think your customers spend their time.
Once you are ready to spend, use a 70/30 rule to test your channels. Put 70% of your ad budget into your “best bet” (for most e-commerce stores, this is Meta: Facebook/Instagram). This concentration is crucial to get enough data to know if it’s truly working. Put the remaining 30% into a single “experiment,” like Google Search ads.
After 3-4 weeks, analyze the results. The only metric that matters is your Cost per Acquisition (CAC), what you actually paid for each sale. You will likely have a clear winner. The plan is simple: stop spending money on the channel that is not working, and move that budget over to the one that is. Your goal is to find your first profitable channel, optimize it, and then use those profits to start a new test to find your second.
Hope this helps!