Thursday, November 05, 2026

Busy one month, silent the next, and no idea which deals were ever real? Neil Rackham's SPIN questions surface the truth weeks before a quiet month does.

If you're one of the 26% of small business owners planning to spend exactly $0 on marketing this month, you're not being frugal — you're setting your own growth ceiling. New data from 7,413 small business sign-ups shows 90% of small businesses spend under $200 a month on marketing, while growth-focused firms sit at 9.4% of revenue, per Duke University's Fuqua School of Business CMO Survey. That gap is a large part of why so many SME owners feel like they're working harder for the same result, year after year.

Why “My Clients Refer Me” Isn't a Marketing Strategy

The data is stark. Of 7,413 small businesses surveyed on planned monthly marketing spend, 26.1% said zero, 39.4% budgeted $1–$50, and a further 24.9% sat between $51 and $200. Add those bands together and 90.5% of small businesses spend less on marketing in a month than most people spend on groceries in a week (UENI, August 2026).

Compare that to Duke's Fuqua School of Business CMO Survey — directed by Professor Christine Moorman, co-sponsored by Deloitte and the American Marketing Association. Its most recent edition — 281 marketing leaders, 99% at VP level or above — found marketing budgets had climbed to 9.4% of revenue, up from 7.7% the year before. That's not a small gap. It's a different business model entirely.

Here's the enemy in this story: the Referral Economy Myth — the quiet belief that if the work is good enough, word of mouth will do the marketing job on its own. It's appealing because it costs nothing and flatters the quality of the work. But referrals are a lagging indicator, not a growth strategy — capped by the size of your existing customer base, not the size of the market you could serve. A business spending $0 on marketing isn't undercutting competitors on price. It's opting out of ever meeting the customers who don't already know someone who knows them.

The Marketing Floor: A Simple Rule for What to Spend

Every business — whether it's shifting cereal for Nestlé or coaching SME owners in Auckland — needs a marketing floor: a minimum percentage of revenue below which it stops being found. Kevin has spent over 30 years building brand budgets at DDB, Ogilvy and Saatchi and Saatchi for McDonald's, Nestlé and IBM, and now runs the Simple-Growth System™, and in all that time the principle has never changed — only the number of zeros. Three tiers:

1. Survive (2–3% of revenue). The bare minimum to stay visible outside your existing network — enough for consistent content and basic paid reach. Below this, you're invisible to anyone who hasn't already met you.

2. Sustain (6–9% of revenue). This is where growth-focused businesses actually sit, in line with what Duke's CMO Survey shows established companies committing. It keeps your pipeline full at your current pace.

3. Grow (10%+ of revenue). What it takes to win market share from a competitor, launch into a new segment, or rebuild momentum after a slow patch.

The action is simple enough to do before 9am tomorrow: pull last month's revenue, calculate 3% of it, and compare that number to what you actually spent. That gap — not your competitors, not the algorithm, not the economy — is exactly what's capping your growth right now. Then put the gap into one channel, run properly, for a full quarter before judging whether “marketing doesn't work for my business.”

“Kevin D'Ambros-Smith was the first coach that helped us and he was so great. He understood the business straightaway, was able to identify some of the areas where we could grow it, and some of the things to park. I don't think the ROW branding would be nearly as strong without his input.”

— Sarah McGuinness, Founder and CEO, Revolutionaries of Wellbeing (ROW)

Why Owners Know This and Still Spend $0

Most SME owners could recite this logic back without prompting. Almost none act on it, for three reasons: marketing feels optional in a way rent and payroll don't, so it's the first line cut when cash is tight — even though it's the line most likely to fix the cash problem; a budget never big enough to test properly never gets to prove itself, so “marketing doesn't work for us” becomes self-fulfilling; and there's rarely anyone reviewing the number monthly, so a floor written down once is just a line in a plan nobody reopens.

That's where the real gap sits — not in strategy, but in accountability. A budget without someone checking it against results every month rarely survives its first bad quarter. That's the specific, unglamorous reason coaching changes outcomes here: not better ideas, but someone in the room holding the floor steady when the instinct says to cut it.

Three Things to Do This Week

  • Calculate your current marketing spend as a percentage of last month's revenue — most owners have never actually done this math.
  • Set your floor at a minimum of 3%, moving to 6–9% if steady growth is the goal for the next 12 months.
  • Choose one channel, not five, and commit your floor to it for a full quarter before switching or judging results.

Key Takeaways

  • 26% of small businesses budget $0 a month for marketing, and 90% spend under $200 a month (UENI, 7,413 businesses, data captured August 2026).
  • Growth-focused companies budget 9.4% of revenue for marketing, up from 7.7% the year before (Duke University Fuqua School CMO Survey, 281 marketing leaders).
  • Referrals are a lagging indicator of past work, not a growth strategy — they plateau at the size of your existing network, not the size of your market.
  • The Marketing Floor: 2–3% of revenue to survive, 6–9% to sustain growth, 10%+ to take market share.
  • A marketing budget without a monthly accountability review rarely survives its first bad quarter.

Work out your Marketing Floor number this week — and if closing the gap between what you spend and what you need feels impossible to do alone, that's exactly the conversation Kevin is ready to have with you.

...and you become the owner who markets on purpose, with a number you set and review.

Tuesday, October 20, 2026

68 percent of US Google searches now end with no click at all. Here's what that means for small business marketing, and the fix that doesn't depend on getting the click back.

Tuesday, October 20, 2026

Most strategic plans are tactics with better formatting. Here's the one-sentence test, borrowed from Sinek's Golden Circle, that tells you if yours has a real why behind it.

Tuesday, October 20, 2026

A private, unwritten goal succeeds about 35 percent of the time. One with a weekly accountability check-in succeeds more than 70 percent of the time. Here's why that gap exists.

Tuesday, October 20, 2026

Roughly 65 percent of small businesses are tied so closely to their owner they'd struggle to run without them. Here's Gerber's E-Myth framework for finally getting out of the technician's chair.

Tuesday, October 20, 2026

42 percent of B2B businesses do nothing proactive during the pre-Christmas slowdown. Here's what the ones who keep selling do differently, and why January rewards them for it.

Monday, October 19, 2026

Is Vistage worth it? A fair, source-linked look at what peer advisory groups offer US business owners, a checklist for deciding, and how one-on-one coaching differs.

Monday, October 19, 2026

Most small business owners know they don't compete on price, but can't say, in one sentence, what they compete on instead. Here's the three-step framework that fixes it.

Monday, October 19, 2026

A strong December can feel like proof you're growing. It can also be the reason nobody builds the pipeline that carries January. Here's the three-question check to run now.

Monday, October 19, 2026

A good coach doesn't start with your goals. They start with three numbers most owners can't answer on the spot, and that gap tells them exactly where to begin.

Monday, October 19, 2026

Most SME owners have tried an AI tool this year. Few can say, in hours, what it actually saved them. Here's the test that tells the difference, and the first step to take.

Monday, October 19, 2026

By the time a prospect calls you, they've already done most of their own research. Here's the sales approach built for exactly that moment, and why most SME pitches skip it.

Monday, October 19, 2026

Social platforms can change the rules on your reach overnight. Here's the one marketing channel no algorithm can take away from you, and why most SME owners still starve it.

Monday, October 19, 2026

A new survey says 53% of small business owners are stuck on finding customers. Here's the one-question test that finds out whether that's really your constraint, or just the easiest one to blame.

Sunday, October 18, 2026

ActionCOACH, Business Blueprint, government-backed advice and independent coaches compared fairly for Australian owners, with best-for and not-ideal-if for each.

Sunday, October 18, 2026

An executive coach develops you as a leader. A business coach works on the business itself. Here is how to tell which one an NZ SME owner needs before paying for either.