If you’re running a home service business, you’ve probably asked yourself: “How much should I be spending on marketing?” It’s a fair question—and one that doesn’t always come with a straight answer. That’s because every contractor is at a different stage of business, with different goals, margins, and target markets.
But here’s the truth: if you want consistent growth, you can’t afford to ignore marketing—or guess your way through it. Whether you’re looking to add another crew, expand to a new service area, or just keep your pipeline full year-round, knowing what to invest in marketing is the key to getting there.
The 5–10% Rule (And Why It Matters)
Most growth-focused contractors should aim to spend 5–10% of their gross annual revenue on marketing. If you’re more established and looking to maintain, you can be closer to 5%. If you’re in growth mode, shoot for 10% or more.
Example: If you make $750,000 a year, 5–10% means budgeting $3,100–$6,200 per month for marketing. That includes your ad spend, agency fees, content, SEO, and tools.
Where Should That Money Go?
Here’s how smart contractors break down their marketing budget:
- Paid Ads (Google, Facebook, LSAs): These deliver fast leads and are scalable.
- SEO: This is a long-term investment that builds authority and drives free traffic.
- Website Optimization: Your site needs to convert traffic into leads and jobs.
- Lead Nurturing Tools: Automate your follow-up with CRM systems that keep you top-of-mind.
- Review & Reputation Management: Build trust through testimonials and 5-star reviews.
Marketing Is an Investment—Not a Cost
Too many contractors look at marketing like a gamble. The truth is, it’s the engine of your business growth. When done right, marketing should pay for itself many times over. If you’re spending $4,000/month and generating $40,000 in booked jobs, that’s not an expense—it’s a smart investment.
And if it’s not delivering that kind of return? It’s time to fix the system—not cut the budget.
Track the Right Metrics
Don’t just throw money into ads and hope it works. You need to track:
- Cost per lead
- Close rate
- Revenue per job
- Return on ad spend (ROAS)
These numbers help you adjust quickly and scale what’s working.
Built Right Budgets for Built Right Results
At Built Right Marketing, we help contractors understand exactly where their marketing dollars are going—and what kind of return to expect. We work within your budget to generate high-quality leads, automate your follow-up, and grow your business the right way.
Final Thoughts
If you’re serious about growth, it’s time to stop guessing and start investing with a plan. Whether you’re spending $2,500/month or $15,000/month, what matters is having a system in place that turns that spend into steady, measurable growth.
Want to see how your marketing budget stacks up? Use our free profit calculator and let’s build a plan that works—Built Right.
