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Marketing

How should you split a fixed budget for the best return?

Pour everything into your best channel and returns flatten out; spread too thin and you waste it. Because each channel has diminishing returns, a fixed budget has a real optimum — and it is not obvious. The nonlinear optimizer finds it.

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The model

Split a $10,000 budget across three channels to maximize total leads, where each channel's leads grow with the square root of spend (diminishing returns).

Budget$10,000
ChannelsSearch, Social, Email
Returnsleads ∝ √spend (diminishing)
Maximizetotal leads
Split→ solved

What Sortia tells you

The optimizer pours money in until the marginal return equalizes:

Search$3,016
Social$1,622
Email$5,362
Total leads546

The optimizer sends the most to Email (highest effectiveness) and the least to Social, stopping exactly where each channel's next dollar would return the same as the others. Guessing an even split would leave leads on the table. Change the budget, effectiveness, and the shape of the returns curve to fit your mix.

Try it in your own sheet

  1. Open Sortia in Google Sheets and choose Start from a template.
  2. Pick Split a Budget for Best Return — the model loads with the inputs filled in.
  3. Change the assumptions to fit your situation and press Run.
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