Aug 30, 2013 Budgeting to Win
It’s not unusual for a firm focused on building a new Web-based service to underestimate the time, effort, and budget needed to market the system after it’s launched.
While budgeting for marketing is highly case specific, as a broad rule of thumb, marketing costs, including the services of a skilled product manager and out-of-pocket expenditures, can often run around two to three times development costs. Actually, savvy firms often budget to begin marketing before the system launches, minimally implementing ‘placeholder’ or ‘teaser pages’ to begin to build lists of interested customers and to jump start SEO.
Many firms also find it a smart idea to build a contingency line item into their development budgets so they have leeway to take advantage of new ideas that occur to you or are suggested by your users and other trusted sources during development or user testing.