[MUSIC] In many respects, this video on Developing Your Budget is the one I approach with the most trepidation. It's not that the methodology we will cover is wrong, almost every organization has different ways to build their marketing budget. As we cover the creating of the budget for your social program, be sure to examine each step through the lens of how you develop your own business and marketing budgets to modify it as required. In addition, as you view the budgeting process, keep in mind that we have provided you a number of different types of budgets in the toolkits for this MOOC. We included ones for startups with few resources, not-for-profits and large companies with different types of empowering concepts. If the budget example we use in this video is too large, too small, or not the way you will approach the empowering concept, don't worry. We have examples you can use to quickly build your own. To start the budgeting proces, you will need to have already determined the empowering concept, private virtual community components and the go viral marketing program designed to engage your high value market and move them to your community site. With these components identified, we can now start the process to justify our marketing program. It will take four steps to accomplish this. First, we will develop a budget for one to three years. For this video, we will use a one year plan. Once the budget is created, we will then create our performance funnels and establish our KPIs. Because our plan hasn't happened yet and we don't have historical data to create every KPI, we will develop some What If scenarios to forecast possible performance. We will create optimistic, average and pessimistic plans to see the impact of different levels of response to our program. Once these are completed, the last step will be to build the metrics to justify the program. In your social budget, you need to develop four cost areas. They are the empowering concept, technology, staffing and marketing. Let's examine each component separately. Often, the empowering concept is a series of webinars, e-books or a series of special events. The costs include talent, technology and the incidentals. To understand these costs better, let me give you an example. If you wanted to have a quarterly webinar series with famous entrepreneurial experts, your empowering concept costs would include hiring the speakers, webinar software and incidentals like travel expenses. If you wanted to do ebooks or videos, the cost would be different, but the components would be similar. Technology costs are found in three areas. To build a relationship with community members, you must first attract them to the landing page where we have the information exchange. For our budget, these costs include the costs of building the landing page, the cost of the data warehouse to store the information and the cost of the web login system. Your IT contact can give you these costs. Another technology expense is the cost of the entire community website. While you have already accounted for the empowering concept, the technology components will include the cost to house the videos and articles on the site, the creation and maintenance of each profile page for the community members, site tracking systems to measure activities on the site and the gamification components. For my clients, we identify what we want in the site and then contact several IT companies if we don't have the internal staff to build and maintain the community site. These costs are relatively easy to develop with a little outside help. The third component is staffing. In developing these costs, remember you have both marketing and IT staff. As in all business decisions, you can outsource or build the staff in-house. Generally in the U.S., I use a base cost plus 40% for benefits. In calculating your staffing requirements, remember the marketing staff will be doing the social component of your marketing plan. They will be developing and deploying the Facebook, Twitter, LinkedIn and other site messages to engage and move the target market to your community site. The final cost component is the marketing cost. You will determine which marketing channels you will use and then develop the costs for a one year marketing program. Remember for patient communities, you will generally have one major marketing expense at the launch of the site and then one other major marketing push after about six months. For trigger event communities, the number of programs you will have each year depends on how many times the trigger event occurs and how long it lasts. Many of the channel costs are easy to determine. Costs for pay-per-click like Google Ad Words can provide you with monthly estimates along with performance projections. For banner ads and other advertising costs, talk to a digital agency to learn the cost for each channel. In building your marketing budget, keep channel cost separate as you'll need to reevaluate them later. This is an example of a one-year budget. It contains all four cost components and is customized to the social program of the company. Yours will be different, but similar. With the budget in place, we can now move on to develop our performance funnels and KPIs to evaluate, adjust and justify our social marketing program. Remember, there are additional budget examples in your toolkit. Use them to find the ones which best match your organization and it's budgeting processes. Now, let's move on to build our performance funnel and calculate our KPI. [MUSIC]
