Most studios spend either too much or too little on marketing — and almost none track what is actually working.
The 5–10% rule
Spend 5–10% of revenue on marketing. At $15k/month revenue, that is $750–$1,500/month. New studios should spend closer to 10%. Established studios with strong referral programs can drop to 5%.
Where to allocate
- 40% — paid social (Instagram/Facebook ads targeting your suburb)
- 20% — content creation (photography, video, graphic design)
- 15% — referral rewards (free classes for referrer + referee)
- 15% — events and partnerships (pop-ups, cross-promotions, open days)
- 10% — tools (software, email, SMS)
Track ROI
For every marketing channel, track: cost per lead, cost per conversion, and lifetime value of acquired member. If paid social costs $50 per new member and that member's LTV is $800, keep spending.
Free marketing
Referral programs, Google Business Profile, organic Instagram, and SEO are all free channels that compound over time. KOLLABO OS includes referral tracking and a branded app that members share naturally.