Digital Marketing Debt: Is It a Good Move?

Every business needs digital marketing. In fact, a solid digital marketing strategy should be developed and implemented right from the beginning because this creates an environment that is set up for success. Many businesses wait several years before addressing it because they maybe didn’t have the resources to tend to it. However, they would have missed out on all the benefits of having a solid digital marketing strategy from the beginning.

But, what happens if the company doesn’t have money to get help on their digital marketing? Is it worth it to work with an agency but have to charge it on a credit card? Is going into debt for digital marketing worth it? Here some of our thoughts:

There’s a Difference Between Having an Investor and Getting Into Debt

Let’s say you’re a new company or a startup and you have investors funding the initial setup phase. The investors have allocated some of their money for marketing. Is this the “debt” we are talking about? In short, no. Starting a business that has been backed by investors is totally different. In fact, the money raised from investors is listed under the “assets” column on the balance sheet, whereas a loan or a credit card balance is listed as a liability.

What we are referring to is running up the balance in the liabilities column. This is the “debt” we believe businesses need to avoid. Whereas money raised from investors that has been set aside for digital marketing is in a different category. Investors want to see the business succeed so they can make a return on their investment – and many of them realize that marketing is one of the keys to a business’s success.

Businesses Need to Discover When Is the Right Time to Get Help

So, when is the right time to get help on their digital marketing? There’s no real way to answer this question, and there are many ways a company can utilize to get this help. They can hire in-person resources, they can work with a consult, or they can even hire a Fractional CMO to manage the marketing on a larger scale. There is also the option to work with an agency. Each of these options carries with it their own pros and cons. Since each business is different, the answer may not be immediately obvious.

Simply put, outside help can improve results. If your results aren’t where you think they are, then you need to consider getting assistance. For some businesses, the answer will be cost prohibitive. Most of these options require money, so once you have the money to spend on it, you should consider the options. For example, when working with a digital marketing agency, you might get more out of the relationship if you wait until you’ve been working on the marketing in-house for 2-3 years or so.

So, we don’t believe it is a good idea to get into debt for digital marketing. Get your business profitable, and then consider the options for bringing in outside help after that.