How to Stop Guessing and Start Growing with Confidence
If you’re like most home service business owners, you’ve probably asked yourself:
“How much should I be spending on marketing?”
It’s a fair question—and a critical one. Set your budget too low, and you’re invisible to potential customers. Set it too high (without a plan), and you risk wasting money with little to show for it. The goal? Find that sweet spot where your marketing investment brings predictable leads and real growth.
Here’s how to confidently set the right marketing budget for your business—without the guesswork.
1. Start with Your Revenue Goals
Your marketing budget should be tied to how much growth you want to achieve—not just what you think you can “afford.”
Ask yourself:
- How many new jobs do you want each month?
- What’s your average job value?
- What’s your close rate (how many leads you convert into customers)?
Example: If you want to book 10 new jobs per month and your average job is worth $3,000, that’s $30,000/month in new revenue. If your close rate is 25%, you’ll need around 40 leads per month to hit your goal.
2. Use Industry Benchmarks as a Starting Point
Most home service businesses spend 5%–10% of their revenue on marketing.
- If you’re in growth mode, aim for closer to 10%–12%.
- If you’re more established or want to maintain your current size, 5%–7% may be enough.
Example: If your annual revenue is $600,000 and you want to grow, a budget of $5,000/month (or 10%) is reasonable to fuel that growth.
3. Factor in Your Lead Sources and Sales Funnel
Not all marketing channels cost the same—or work the same. A well-balanced budget supports both short-term wins and long-term brand building.
Here’s a sample breakdown:
- 30–40%: Paid Ads (Google Ads, LSAs, Facebook)
Get leads quickly while you build organic reach. - 20–30%: SEO & Content Marketing
Fuel long-term visibility with blogs, web content, and local SEO. - 10–15%: Website & Conversion Optimization
Continuous improvement of the website so the traffic you’re paying for actually turns into leads. - 10–15%: CRM, Email, and Automation
Stay in touch with leads and past customers to improve conversion and retention. - 5–10%: Branding, Social Media, and Creative
Build trust and recognition in your local market.
4. Don’t “Set It and Forget It”
A marketing budget is a plan, not a fixed rule. Review your results monthly or quarterly. If one channel is consistently underperforming, reallocate funds. If you’re seeing high ROI in a certain area, double down.
Track these key metrics:
- Cost per lead (CPL)
- Cost per booked job
- Lead-to-customer conversion rate
- Return on ad spend (ROAS)
5. Invest with Intention, Not Emotion
It’s easy to feel burned by marketing—especially if you’ve hired an agency in the past and didn’t see results. But the real mistake isn’t spending money on marketing… it’s spending money without a strategy.
Setting the right budget isn’t about crossing your fingers. It’s about making smart, strategic decisions based on your goals, numbers, and market.
Final Thought: The Right Budget Brings Predictable Growth
Your marketing budget isn’t an expense—it’s an investment. One that, if done right, brings in consistent leads, better clients, and long-term business growth.
So stop guessing. Start planning. And set a marketing budget that actually helps you grow with confidence.
Need help building a strategy around your budget? Let’s talk. We help home service pros turn their marketing into a lead-generating machine—no guesswork required.
