What to choose between Brand Building and Performance Marketing?

Many founders ask me, Shikhar, what should I choose between Brand Building or Performance Marketing?

Now, many marketers and people old in DTC will tell you, that performance marketing is a part of brand building. This is true.

But I will answer this question, by keeping in mind that most people consider brand building as “high level storytelling content” that includes creating the story behind the brand, feel, emotion, etc. It includes high production and post production cost without seeing results for weeks or sometimes months .

Not many founders can afford this.

On the other hand, performance marketing is quick “’cashflow scheme”. The moment you start it, it starts to yield you some cashflow. It is like you switch on the machine and you get the money.

This is not “Free” but it gives quick cashflow to keep the business running.

How to choose the best method for your brand?

There is no specific answer to this question because every founder and his/her situation is different, but i will try to make it easy for you to choose.

I have divided this complete criteria into 3 categories:

No financial constraints : When founders have another funding source, and they are not limited by money, they can invest for long without seeing results for months, they should go with brand building. This is ruthless for short term, but yields goof profit in long term.
Have slight financial constraints : Founders who have some financial constraints but still belong to category that is story driven instead of problem driven, they should go with both brand building and performance marketing. Brand building tells the story. Performance converts the people. Exact percentage of these 2 vary from founder to founder.
Have tight budget : Go with performance marketing, if you are bootstrapped, you don’t have large VC funding, you don’t know where your next employee salary come from, and your have to keep your lights on for your business.

No above criteria is hard and fast rule, that is just optimized. Business is a game of uncertainty and luck. It might work for you, it might not be. But I have created the above concept after reviewing more than 100 brands and businesses and noticed this pattern.

PS : Cashflow is oxygen. First learn to survive then optimize.

PPS : Remember