Increasing your marketing budget is not a bandage for poor operations. Instead, the resulting influx of leads will amplify existing problems in your customer service, scheduling, and technician processes, potentially leading to disaster if the business isn't prepared for the volume.
Businesses often get distracted by trendy technology like AI. However, if foundational business metrics, such as a call center booking rate below 85%, are underperforming, focusing on new tech is a mistake. Solidify core operations in marketing, finance, and sales first before chasing shiny objects.
Many marketers mistakenly assume performance marketing channels scale linearly. Co-founder Andy Lambert learned that simply increasing the budget doesn't produce proportional results. Instead, efficiency breaks down, and customer acquisition costs rise, highlighting an over-fixation on demand capture versus sustainable demand creation.
A client wasted $100,000 because marketers executed isolated tactics like SEO without a cohesive plan. An effective agency must first deeply understand the core business strategy—mission, growth goals, ideal clients—before implementing any marketing activities to ensure alignment and ROI.
Marketing is an accompaniment to a great operations team, not a replacement. If your company culture, leadership, or service delivery is weak, increasing your marketing spend will only expose and accelerate those foundational flaws. You must fix the core business before scaling marketing efforts.
To achieve significant growth (over 10%), contractors should allocate 10-12% of their target revenue goal to marketing, not a percentage of last year's actual revenue. This forward-looking investment is scary but necessary to fund the growth you want to achieve, rather than just sustaining current levels.
Don't assume large, well-resourced companies have solved fundamental GTM challenges. Even at Google, sales and marketing alignment is a persistent people and process issue, not one that can be solved simply by adding budget or headcount. These problems are universal.
Many businesses over-index on marketing to drive growth. However, strategic price increases and achieving operational excellence (improving conversion rates, average tickets) are equally powerful, and often overlooked, levers for increasing revenue.
Getting approval for an operations hire is difficult because they aren't directly tied to new revenue. Instead of a vague promise of "efficiency," build a business case by quantifying the cost of a broken process—like a high lead disqualification rate—and show how the hire will unlock that hidden pipeline.
Pouring marketing resources into a "leaky bucket" is inefficient. If customer onboarding is flawed, prioritize fixing it before optimizing top-of-funnel campaigns. The highest leverage is in ensuring activated users convert, not in acquiring more users who will quickly churn.
Many founders believe growing top-line revenue will solve their bottom-line profit issues. However, if the underlying business model is unprofitable, scaling revenue simply scales the losses. The focus should be on fixing profitability at the current size before pursuing growth.