Although on the books, marketing is an expense, it�s really not when you stop and think about it. What do you need to do to generate sales? You have to let people know what you do and what you can offer them. It�s called marketing. So when times are tough, why would you stop using your main resource outside of referrals to get more money in the company? With that in mind, forget what your accountant labels marketing as, you have to treat it as an investment. Allow me to go further on the subject to clear it up. In accounting, sure, marketing IS an expense. But here's what happens when marketing is viewed purely as an expense: You think of marketing solely as an expense. When business gets slow, you cut marketing. Now you are letting less people know about your products and services. Results: You get even less business. If you think of marketing only as an expense, the odds are, your marketing is nowhere near as effective as it could be. Here�s how you think of marketing as an investment. When you spend money and buy stock, that's an expense AND an investment. When you buy a rental property, that's an expense AND an investment When marketing is looked at as an investment, it is seen in a much different light. You start to require that it make money. You will begin to look for a return on investment. For example: You view marketing as an investment. Every time you spend marketing dollars, you track how much business it brings. Now you can see what's working and what�s not. Try new things and get rid of methods that were working and now are not. Results: You get more sales and waste less money. You don't need to put in a lot of time to find out what works. Notice how other businesses track their response. Every time you see a commercial that says "Mention this ad for a free gift," they are tracking how well that ad works. Every coupon you see is a way for a company to track an ad. Every time someone asks, "How did you hear about us?" they are tracking what works. When your marketing is an investment instead of just another expense, you'll hold it accountable. It's a small but important change in viewpoint that can add to your bottom line. Try it. It�s a little more work but I am sure it will pay off� and save your marketing budget.