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01 · The question

Do you have a percentage of your budget that you allocate for ads? Or do you just do what’s needed? I’m wondering if there’s a recommended percentage of overall revenue that we should put into advertising?

Asked by ShelleyJun 23, 2026From the Telegram archive
02 · Kate's answer
Answered Jun 23, 2026

Kate's answer

Listen to Kate's answer0:00 / 1:24
03 · The short version

Kate's take, in a sentence or two

Kate doesn't follow a strict monthly percentage system, though she admits she could be more concrete about it. Her approach is that she'll spend to infinity on an ad funnel as long as it stays profitable, but in practice she's spent between $50–$250 a day over the past year and a half, which works out to about 13% of revenue. She aims to keep ad spend below 20% of revenue (ideally 10–15%), reverse-engineering that number from her goal of maintaining about a 65% pretax profit margin before paying herself.

04 · Transcript