You Can Grow Without Ads
When is the right time for paid advertising? It's a question we get often. But with a few calculations, such as allocating 10% of your revenue to paid advertising, you can set the stage for steady growth in your customer base. After determining that 10% figure, we delve into the channels you wish to utilize, divide it by the associated costs, and project the engagement you can anticipate based on your industry. This strategic planning sets the foundation for your business's potential growth and success.
If your company had $250,000 in revenue in the previous year, start your marketing strategy at $25,000 —or $2,083 per month. If you'd like to be conservative, given your profit margin, begin at $15,000 your first year or $1,250 per month.
However, on the off chance, that your business model is driving more than the engagement we anticipate based on your industry. As a digital marketing agency, it pains us when businesses spend money unnecessarily, without a way to track successful initiatives, or before it makes sense for their growth.
Here are three other instances why your business might not need paid advertising (or at least not yet).
Word-of-Mouth Drives All Your Sales
If word of mouth drives your business, ask for reviews, find a way to say thank you, and keep the chattering going. Create a Facebook group for all of your enthusiasts to exchange ideas. There's a company that sells household decor (mostly farmhouse and traditional aesthetic) with a FB page for buyers to share how they styled the item. So not only is part of their warehouse a showroom that they flip for design ideas, but people who might not know where to place an item now feel confident that if they buy it, they'll learn how to style it in their home. This company’s Facebook shopping ads perform well, but this community adds a level of engagement that cannot be denied. And now that Facebook suggests pages and groups based on your engagement with ads, a new buyer on the fence about your business will see countless users who can vouch for your business practice and products.
Your Customers Aren’t Online
We can think of three clients who fall into this category, but we'll discuss one for today— a locksmith in North Carolina. Truth is, most people don't need a locksmith until they are locked out. And then, after they reach out, the likelihood that they become repeat customers or subscribe to your blog is slim — at least, we hope. No one wants to be perpetually locked out and needing a locksmith.
Here your best route is SEO, great reviews, and optimizing your business listings with Google My Business, Bing Places, Yelp, and Apple Listings. As long as your phone number is located at the top of your website’s homepage, the customer will call. There are over 1.5 billion websites, and yours will be there when your ideal client is online looking for your services.
You’re Market is Niche with High Demand & Limited Competition
Some businesses operate in a market where demand is strong and competition is minimal. In these cases, your customers are already actively searching for what you offer, making organic search, referrals, and partnerships more valuable than paid advertising. Instead of focusing on ads, we recommend leaning into thought leadership, SEO, and community engagement to connect with the right audience authentically. In niche markets, a strong reputation often speaks louder than any ad. If competition is low, you have the opportunity to organically own our space, investing in what truly matters—your products, your customers, and your long-term vision. While paid ads can be beneficial, for some businesses, they aren’t as essential especially early on.
Examples of these types of companies are:
Specialty B2B Services – Companies offering solutions, such as aerospace engineering consulting, custom industrial manufacturing, or regulatory compliance software. Their clients are actively seeking these services through referrals, and subject matter experts more than broad paid advertising.
Luxury or Handmade Goods – High-end brands that rely on exclusivity, and craftsmanship like brands for bespoke jewelry, artisanal furniture, or skincare formulated for rare conditions. These businesses thrive on brand awareness, organic storytelling, and customer loyalty rather than paid ads— think Golden Goose.
Essential Local Services – Businesses that serve a specific geographic or niche need, such as a specialized medical practice (e.g., pediatric neurology), custom home restoration for historic properties, or emergency spill response teams. Demand is built-in, and a strong local reputation, SEO, and referrals naturally drive customer acquisition.
Focus on What Works
Time, budget, and staffing are all resources you may be limited on— and based on your business needs you’ll need to address those outstanding needs before pursuing paid advertising. If you need an assistant to help you re-paint cabinets or package your consumer product goods, that’s more important than digital marketing for the time being. But once you’ve addressed your immediate needs, you may find that you know have what you need to get started with digital marketing.
If you’ve exasperated your community’s likes, comments, shares, and reviews or you’re not sure of the demand for your industry and services, let’s do an audit of your site visitors, industry, and build you a plan outside of paid ads.
