Milady F10 – The Beauty Business Practice Test 2026 - Free Beauty Business Practice Questions and Study Guide

The correct choice reflects the general guideline in the beauty and wellness industry for allocating funds to advertising. Keeping the advertising budget at around 3% of gross income is considered a prudent practice. This benchmark helps ensure that a business invests enough in marketing to attract new clients and maintain visibility in a competitive market without overspending.

Allocating 3% allows for strategic advertising while simultaneously allowing sufficient funds for other operational expenses, ensuring the business remains financially healthy. By adhering to this guideline, business owners can optimize their advertising efforts to align with their revenue, maximizing the return on investment for their marketing expenditures.

This balance is essential, as a budget that is too low may hinder effective marketing, while a budget that is excessively high could strain the overall financial stability of the business.