Last year, in preparation for my May 2008 book launch, I ordered 2,500 promo pens (a natural promotion idea as readers are often writers). As writer buddies organize conferences (perfectly targeted audiences), I've been sending them packages of pens for them to stuff in the giveaway bags.
My very frugal hubby, at first, had a fit. No, no, he'd protest, save these pens for "later." He only stopped making a fuss when I mentioned that a certain big conference charges authors $200 for the privilege of giving away their stuff (yet my buddies were kindly letting me give my pens away for free).
Here's the thing. Promotion, marketing, advertising, whatever you call it, when properly done is NOT an expense, it is an investment. Just as I wouldn't consider investing in the ice stock (btw… sold the cemetery and funeral home stock, I think they're going to have to cut distributions, will likely repurchase after that happens) as throwing money away, neither is investing in our own business (because that is exactly what marketing is, investing in our own company).
Does that mean I spend willy nilly on marketing? Nope. I only invest where I figure I'll get the best return. And when I invest, I track those returns (easier to do with internet promotions directed to our own website – I can see where the traffic is coming from and when the book is for sale, if that traffic is clicking through to the purchase link).