Follow The 6% Rule for A Smarter Way to Fund Your Direct Marketing

Why “Just Spend More on Marketing” Isn’t the Answer

If you’ve ever felt pressured to slap 10% of your revenue into a vague marketing bucket, you’re not alone. Somewhere along the line, 10% became the default advice—but for boutique hospitality owners who care deeply about ROI, that number is too lazy and too loose.

Enter: The 6% Rule.

It’s not about spending less, it’s about spending smarter—specifically, funding marketing that drives direct bookings and builds long-term guest relationships. Not middleman platforms. Not overpriced print ads. Just focused, direct marketing that actually moves your business forward.

What Is the 6% Rule?

The 6% Rule is a strategic budget guideline that allocates 6% of top-line revenue exclusively to direct marketing efforts. Not general advertising. Not “brand awareness.” This is intentional spend tied to guest conversion and repeat stays.

Let’s be clear: this isn’t a shortcut or a quick fix. It’s a focused approach that gives you permission to stop guessing and start investing in what actually grows your business.


What About the Startup Phase?

Here’s the nuance most conversations about marketing budgets miss:

Your marketing spend should shift with the phase of your business.

  • Startup Years 1–3: In these early years, your visibility is everything. You’re building brand awareness, guest trust, and direct booking systems from scratch. Expect to spend 15–25% of your revenue on marketing—especially if you’re launching in a crowded market.
  • Stabilizing Phase (around Year 3): Once you’ve got a guest list, systems, and repeat bookings in place, you can start stair-stepping back your budget. Begin tightening focus, cutting waste, and optimizing what works.
  • Stable & Growing: By this point, you’ve built a brand that books direct. Your marketing spend should settle in the 6–10% range—enough to sustain visibility, deepen loyalty, and drive direct ROI without overspending.

This phase-based approach keeps your budget grounded in reality—and aligned with actual business needs.

Why 10% Doesn’t Always Work for Boutique Brands

You’ve probably heard or read the advice: “You should spend 10% of your revenue on marketing.” But before you buy into that, check out: Before You Demand a 10% Marketing Budget, Read This.

The problem with 10% is that it’s not grounded in context. It assumes all businesses are in the same phase, with the same margins, and the same goals. That’s not the case for most boutique hospitality owners.

“More spend does not equal better marketing. Better focus does.”

If you’re running a direct booking business, your goal isn’t to compete with Marriott. It’s to build trust, stay top of mind, and get booked directly—on your terms, not a platform’s.

What Counts in Your 6%

This 6% should go exclusively to marketing tactics that keep you in control of the guest relationship. Think:

  • Email campaigns to past guests
  • Social ads that link to your site (not Airbnb)
  • Seasonal offers or packages booked direct
  • Website upgrades and SEO that increase organic traffic & LLM visibility
  • Brand storytelling and blog content that educates and connects

In other words: anything that helps guests book with you, not through a third-party middleman.

If you’re unsure how to get started, this guide will help: Before It’s Too Late: The Direct Booking Playbook Every Host Needs.


What Doesn’t Count (But Often Gets Lumped In)

Avoid letting your 6% get eaten up by line items that don’t actually bring guests closer to you. Examples include:

  • OTA commissions (those are distribution costs, not marketing)
  • Print ads with no measurable conversion path
  • Branded merch unless it directly supports a very specific campaign
  • General awareness efforts with no trackable ROI

Remember: direct marketing is measurable. If you can’t see where the bookings are coming from, it doesn’t belong in your 6%.


The ROI Perspective Most Owners Miss

Here’s what makes the 6% Rule so effective:

You’re no longer guessing what your marketing dollars are doing.

You’re choosing to fund direct guest acquisition, not hand your margins to platforms or pay for generic impressions.

Let’s say your property earns $250,000/year. That means your 6% direct marketing budget is $15,000.

That could fund:

  • A seasonal ad campaign to drive summer bookings
  • Quarterly email marketing
  • Blog content written to attract high-intent search traffic
  • A small redesign that speeds up your booking engine
  • Brochures, distributed by your local tourism office
  • A content creator system

ROI becomes trackable, testable, and real. And most importantly? You stay in control.

Spend Like a Brand That Books Direct

The point is to stop treating “10% of revenue” like it’s a law of nature.

Yes, there are solid articles and benchmarks that use the 10% guideline, and for some businesses it can be a reasonable starting point. But if your goal is more direct bookings, your marketing budget can’t just be a percentage… it has to be a system.

That’s why I like the 6% Rule: it funds the work that compounds—owned channels, owned data, and owned tracking—so you’re not guessing what’s working or donating dollars to “vibes.” Your spend should map directly to the tools that prove impact: CRM + email/SMS, conversion tracking, attribution, retargeting, landing pages, and the content engine that feeds them.

Because in this industry, trust is built one booking at a time. And the brand that wins isn’t the one shouting the loudest — it’s the one that can see the full guest journey, nurture it, and close it… without handing the relationship to a third-party platform.