Request a callHow to build a B2B demand generation budget your CFO will approve
Start from the revenue target, work backward through win rate and deal size to the pipeline marketing must create, then estimate the opportunities each channel can produce at a realistic cost. Separate proven spend from test spend, and commit to monthly reporting on cost per opportunity so the CFO can see the budget working.
Key takeaways
- Build the budget backward from pipeline, not forward from last year.
- Use your own historical conversion rates wherever possible.
- Ring-fence a test budget with clear kill or scale rules.
Work backward from revenue
- Revenue target from new business
- Divide by average deal size to get deals needed
- Divide by win rate to get opportunities needed
- Assign the share marketing is expected to source or influence
- Estimate cost per opportunity by channel from your own history
Split proven and test budgets
Fund proven programs at levels your data supports, and keep a separate test budget for new channels and offers. Each test gets a hypothesis, a time box and a decision rule. Finance trusts budgets that show how money moves from tests into proven programs.
What finance wants to see monthly
- Spend vs plan by channel
- Opportunities and pipeline created by channel
- Cost per opportunity and pipeline per dollar
- Budget moved between programs and why
Frequently asked questions
What percentage of revenue should B2B companies spend on marketing?
It varies widely by growth stage, category and sales model. A pipeline-backward budget based on your own conversion data is more defensible than an industry percentage.
Related service: Paid media. See also pricing and client results.