Readers of Sales Lead Report responded to last month’s survey of sales and marketing budgets for 2004. There were some unexpected results.

Sales Budgets in 2004

Nearly 58% of you reported that your sales budget would increase somewhat (50%) or significantly (7.7%).

Only 11.5% of you said that your sales budget would decrease somewhat (7.7%) or significantly (3.8%).

Marketing Budgets in 2004

Nearly 54% of you said that your marketing budget would increase somewhat (50%) or significantly (3.8%).

Only (7.7%) of you said that your marketing budget would decrease significantly.

Planned budgeting approaches

Nearly 47% of you and your fellow Sales Lead Report readers who completed the survey said that you will create your 2004 budget utilizing a zero-sum starting point. In other words, you’ll use the estimated cost of everything required to meet your goals and not base your budget on historical data.

Nearly 35% of you reported using your 2003 budget as the starting point to determine your 2004 budget.

15.4% of you plan to use a percentage of projected sales to determine your budget.

Only 3.8% of you plan to use a percentage of this year’s sales to determine your next year’s budget.

Which budgeting approach is best? See “How to determine your marketing budget and get it approved.”