How do I build a realistic budget for indie campaigns (benchmarks, constraints, phased spend)?
TL;DR - Budget = (Base costs you must pay) + (Test spend to prove the song converts) + (Scale spend only on channels that beat your KPI).
Set fixed costs first, ring-fence 10 % for “unknown unknowns,” then phase the rest: Validation (20 – 30 %), Scale (40 – 60 %), Sustain (10 – 20 %).
1 Lock the Non-Negotiables (“Base Costs”)
Line Item (Typical DIY) Low: $20 / yr Mid: — High: $50+ (label-services) Notes: Unlimited uploads on flat-fee plans
Distribution fee (DistroKid, TuneCore)
Line Item (Typical DIY) Low: $0 (in-house) Mid: $200 High: $700 Notes: Fiverr vs pro engineer/illustrator
Audio master / artwork
Line Item (Typical DIY) Low: $0 – $100 Mid: $150 High: $400 Notes: Sample clearance can dwarf other costs
Admin & legal (Songtrust, samples)
Line Item (Typical DIY) Low: $20-$100 Mid: $350 High: $1,150+ Notes: Baseline before you run any marketing
Total fixed
2 Set Your Marketing KPI & Benchmarks
Objective: Algorithm lift / fan growth North-Star KPI: Cost-Per-Save ≤ $0.15 Good Target: $0.08 – $0.12
Objective: Email/SMS list build North-Star KPI: Cost-Per-Lead ≤ $1.00 Good Target: $0.60 – $0.90
Objective: Merch / ticket profit North-Star KPI: ROAS ≥ 1.2 Good Target: 1.3 – 1.6
Pick one KPI per campaign; every budget line must justify itself against that number.
3 Choose a Budget Class
Shoestring $300 max Stream/Save test, no ads over $10/day
Growth $1 000 Mix of ads + pitching + merch prototypes
Aggressive $3 000+ Multi-creative ad matrix, PR retainer, Marquee
4 Phase the Spend (Validation → Scale → Sustain)
Phase: 1️⃣ Validation (T-14 → Launch + 48 h) % of Marketing Pot: 20 – 30 % What You Buy: OneSubmit /SubmitHub / Groover credits; $5–10/day TikTok tests Exit Criteria: Save ≥ 8 %, Skip ≤ 25 %, CPS ≤ target
Phase: 2️⃣ Scale (Launch + 3 d → Day 21) % of Marketing Pot: 40 – 60 % What You Buy: OneSubmit / DailyPlaylists Boost; Meta/TikTok retarget; Marquee Exit Criteria: KPI stays green ≥ 7 days
Phase: 3️⃣ Sustain (Day 21 → Day 45) % of Marketing Pot: 10 – 20 % What You Buy: Spark-Ad best Reel; Acoustic version push; Email drip Exit Criteria: Scale down when Cost-Per-Save rises 25 % from lowest point
Ring-fence 10 % of the total pot as contingency for a surprise opportunity (e.g., influencer repost fee, rush vinyl reorder).
5 Benchmark Cheat-Sheet (2025 indie averages)
Tactic: TikTok In-Feed (music hook) CPM / Unit: $6 – $10 Typical Conversion: 3 – 4 % click → 30 % save Implied CPS / CPL: $0.12 – $0.14
Tactic: Meta Reels retarget CPM / Unit: $8 – $12 Typical Conversion: 5 – 6 % click → 35 % save Implied CPS / CPL: $0.10 – $0.16
Tactic: SubmitHub credit CPM / Unit: $1.50 (avg) Typical Conversion: 12 % add-rate Implied CPS / CPL: $0.12 – $0.18
Tactic: OneSubmit Starter CPM / Unit: $325 Typical Conversion: 25 adds • 4 k saves Implied CPS / CPL: $0.08
Tactic: Groover (EU blogs) CPM / Unit: €2/contact Typical Conversion: 10 % add-rate Implied CPS / CPL: $0.15
Use these to sanity-check your own quotes and results.
6 Build the Budget Sheet (Template)
Phase: Validation Channel: 30 SubmitHub credits Budget $: $45 Actual Spend: $45 Saves / Leads / Rev: 380 saves Cost per KPI: $0.12 Traffic Light: green
Phase: Validation Channel: TikTok test ads Budget $: $75 Actual Spend: $60 Saves / Leads / Rev: 420 saves Cost per KPI: $0.14 Traffic Light: green
Phase: Scale Channel: OneSubmit Budget $: $325 Actual Spend: — Saves / Leads / Rev: — Cost per KPI: — Traffic Light: (pending)
Phase: Sustain Channel: Spark-Ad Reel Budget $: $50 Actual Spend: — Saves / Leads / Rev: — Cost per KPI: — Traffic Light: —
Conditional-format cost/KPI cells (green ≤ target, yellow 10–25 % over, red > 25 %).
7 Allocate Cash Flow
Pay fixed costs first (distribution, artwork, admin).
Hold the validation pot in your ad accounts / pitching wallets.
Move scale funds only after validation metrics go green.
Keep contingency untouched until week 3.
8 Common Budget Traps & Fixes
Trap: Front-loading 90 % of funds before you know if the song converts Quick Fix: Cap validation spend at 30 %; 48-hour KPI gate
Trap: Ignoring FX fees & VAT on platforms like Groover Quick Fix: Add 5 % buffer line in sheet
Trap: Judging success by streams (no saves) Quick Fix: Track CPS, not CPM
Trap: Zero wiggle room for emergencies Quick Fix: Always park 10 % contingency
Trap: One creative, one audience Quick Fix: Minimum 2×2 test (hook A/B × audience 1/2) in validation phase
Quick-Start Example (Growth Budget – $1 000)
Bucket: Fixed costs (art, distro, Songtrust) $200
Bucket: Validation pot (20 %) $160
• SubmitHub 60 credits $90
• TikTok test ads $70
Bucket: Scale pot (55 %) $550
• OneSubmit Starter $325
• Meta Reels retarget $125
• Marquee (US + DE) $100
Bucket: Sustain pot (15 %) $150
• Spark-Ad best performing Reel $75
• Acoustic version push $75
Bucket: Contingency (10 %) $100
TOTAL 1 000
If validation CPS lands at $0.18 (yellow), move $100 from Scale pot to creative tweaks; if red, halt OneSubmit, keep contingency to fund the next single.
Take-Away Framework
Base Costs ➜ 20-30 % Validation ➜ KPI Gate ➜ 40-60 % Scale ➜ 10-20 % Sustain ➜ 10 % Contingency
Plug any dollar figure into that model, use benchmarks to sanity-check each line, and let the KPI traffic lights tell you exactly when to open or close the tap.