$5M ARR Founders, How Should You Budget For Content Marketing

$5M ARR Founders, How Should You Budget For Content Marketing

So, you’ve hit $5M in annual recurring revenue (ARR). Congrats! Your product is stable, your customers love you, and now you’re ready to scale. But here’s the problem: you’ve dabbled in ads and branded keywords, but everyone’s telling you to invest in content marketing. You’re not sure where to start, how much to spend, or whether to hire a team. Sound familiar?

Let’s break this down. Content marketing isn’t just about blogging—it’s about building trust, educating your audience, and driving organic growth. But to do it right, you need a clear budget, a lean team, and a focus on ROI. Here’s how to get started.

Why Content Marketing? (Spoiler: It Works)

Let’s start with the facts:

  • Companies that blog generate 67% more leads than those that don’t (HubSpot).
  • Content marketing costs 62% less than paid ads but delivers 3x the leads (DemandMetric).
  • SaaS brands like GrooveHQ scaled to $5M ARR by pivoting from ads to customer-centric content.

But here’s the kicker: poorly planned content wastes time and money. You need a strategy that aligns with your goals, audience, and budget.

Step 1: Set Your Budget (Let’s Crunch Numbers)

For a 5M ARR SaaS business, experts recommend allocating 7%-10% ($350K – $500K/year) of yearly revenue in marketing. Of that, 25%-30% (87K–$150K/year) should go into content marketing. Here’s how to split it:

CategoryBudget Range (annually)What It Covers
Content Creation$35K-$60KBlog posts ($1K-$2K/post), videos ($500-2k/video), lead magnets (e.g., ebooks).
Promotion$17K-$30KSocial ads, influencer partnerships, SEO tools (Ahrefs/SEMrush).
Talent$26K-$45KFractional strategists ($2K-$8K/month), freelance writers, designers.

Source: Data aggregated from CMO surveys and SaaS case studies like Time Doctor and GrooveHQ.

Pro Tip:

“Start with 2–4 high-quality blog posts per month and 1–2 lead magnets per quarter. Quality trumps quantity every time.”

Alex Turnbull, CEO of GrooveHQ

Step 2: Build Your Team (In-House vs. Freelancers)

Hiring too fast? That’s a common mistake. For a $5M ARR business, start lean:

RoleCost (Monthly)Why You Need Them
Fractional Strategist$2K-$8KMaps your content roadmap, aligns with business goals, and tracks ROI.
Freelance Writer$500-$2K/postSpecializes in SEO or technical content (e.g., “How to Optimize SaaS Onboarding”).
Designer/Video Editor$1K-$3K/projectTurns blogs into infographics, tutorials, or short-form videos.

Source: Siege Media’s SaaS marketing benchmarks.

Case Study:

Time Doctor spent $4.5k on a single ebook but drove 309 qualified leads in 2 years through gated content. Their secret? Outsourcing to niche writers and designers while keeping strategy in-house.

Also read: Why Every Business Needs a Blog (And How to Do It Right)

Step 3: Focus on High-ROI Content Formats

Not all content is equal. Prioritize formats that drive traffic, leads, and customer retention:

Educational Blog Posts

  • Example: “10 Remote Work Productivity Hacks [2024 Guide]”
  • Cost: $1K–$2K/post
  • ROI: 10k+ monthly visitors (used by Time Doctor).

Customer Case Studies

  • Example: “How [Client] Reduced Churn by 40% Using Our SaaS Tool”
  • Cost: $3K–$5K/case study
  • ROI: 20–30% higher conversion rates (MarketingSherpa).

Short-Form Video

  • Example: 60-second LinkedIn tutorials
  • Cost: $500–$1K/video
  • ROI: 6x higher engagement than text posts (HubSpot).

Step 4: Measure What Matters

Track these metrics to avoid wasting budget:

  • Organic Traffic Growth: Aim for 20–30% YoY increase (Ahrefs).
  • Lead-to-Customer Rate: 5–10% is healthy for SaaS.
  • CAC Payback Period: Keep it under 12 months.

“We killed underperforming content and doubled down on tutorials. Our blog now drives 30% of new MRR.”

Liam Martin, Co-Founder of Time Doctor

Final Takeaway: Start Small, Scale Fast

You don’t need a 10-person team or a $500k budget to win at content marketing. Start with:

  • A fractional strategist to build your roadmap.
  • 2–3 freelancers for content creation.
  • A focus on 1–2 high-impact formats (e.g., blogs + case studies).

Reinvest savings into scaling what works. As Alex Turnbull says, “Content compounds—but only if you’re patient.”

TL;DR: Allocate ~$100K/year to content, hire freelancers + a fractional strategist, and obsess over ROI metrics. Your future self (and your CFO) will thank you.

Hire LymLyt for strategy, writing, and execution of your content strategy!

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