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Obviously it varies quite a bit. Some consumer companies can spend very little on sales and marketing. But many consumer companies and nearly all B2B companies spend an enormous amount. Look at a company like New Relic. They took four rounds of venture, plus two rounds of private equity. They were spending 70% of their operating budget on sales and marketing. It was expensive the whole way. It costs a lot of money to develop a product to the point where it is better than the status quo, and then a lot more money to market it.



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