How to Get Your Marketing Budget Approved: A B2B Guide from a Fractional CMO

It's almost that time again - budgeting season! We, as marketers, know too well the pain of pouring hours into crafting a detailed budget only to have it turned down. 🙁 So, I’ve stopped jumping straight into budgets...

I start with building a model instead.

Why Start with a Model?

A budget is all about the money you’re planning to spend, which is probably why it makes the CFO nervous and often gets shot down. A model, however, is about what we think we can achieve with that spend - it’s about results!

The Two Models I Use:

1. Bottom-Up Approach:

Here, we look at what we’ve achieved this year and how much it cost us. We ask ourselves: How can we do better next year? Is there any chance we might do worse? If we have $X budget, how many Sales Accepted Opportunities (SAOs) can we expect?

2. Top-Down Approach:

In this one, we ask: What’s our revenue target, and how much do we need to generate to hit it? Given our budget, what’s the expected cost per SAO?

Comparing the Models:

If there’s a big difference between the models, it’s a sign. We might need to think about adjusting our goals or asking for a bit more budget. I’ve been in these shoes, discussing this with our CEO, and yes, we did get a bigger budget in the end!

Start with a Model, then Plan and Budget:

This is how we can prepare to ask for what we need and back it up with some solid reasoning. Begin with your model, move onto your plan, and wrap it up with your budget.

Wrapping it up:

Starting the budgeting journey with a well-structured model means you’re not just walking in with a spending wish-list. Instead, you’re going in with clear, achievable goals and a plan on how to get there. It’s a less formal, more human way to approach budgeting, one that shows the real value in your marketing plans and how they align with the bigger picture of what your organisation is trying to achieve.

In everyday language, don’t just talk about what you’re going to spend; talk about what you’re going to achieve with it! And remember, first the model, then the plan, and finally the budget. It’s a simpler, more straightforward way to get the resources we need to drive our organisations forward in the world of B2B marketing.