| For starters I would separate them out. Paid I would consider traditional forms of advertising and marketing such as TV, FB, Google, ads, etc. Organic or community driven advertising has it's costs as well but I would separate that out to a different section. This would include budgets like meetups, some conferences (though many I would actually lump into traditional ad spend), t-shirts, stickers, credits to customers, community expenses and so forth. Then for non-tracked customers I would assume that percentages work well. Meaning if 25% of my customers come from community, then 25% of my non-tracked organic customers are from community. If 5% are from paid, I would say 5% of my organic non tracked are paid. If you do the break out this way you will see that old-gaurd paid advertising is 80% of the cost of the entire sales and marketing function, but brings in an overall 5-10% of net new sales. Now if you are profitable, or near profitability go for it, but if you are losing a sizable portion of yearly revenue, say 50% or more due to sales and marketing and you see it broken out this way you will immediately realize how false this spend is. Just because something is done a certain way and accepted, doesn't mean that it's correct. |