first marketing attempt

[Spencer Gordon]

[Justin Silverio]

You can take a different approach by looking at how many deals you want to make or how much money you want to make for the year

For example if you want to make $50,000 for the year, you would do the following:
$50,000 / profit per deal / average conversion rate from marketing * cost per piece of marketing

Here's the example with some numbers. These numbers are only for presentation purposes. Your market, type of marketing and costs will yield different results.
$50,000 / $5,000 = 10 deals / 0.25% response rate from direct mail = 4,000 letters * 0.50 cents per letter = $2,000

You can use this caclulation and adopt it to other types of marketing but it's a good way to get an idea of cost.