Strategy · 6 min read
How Much Should a Contractor Spend on Marketing?
It's the question every contractor asks: how much should I actually spend on marketing? Spend too little and you're invisible; spend without a plan and you're funding ads that never become jobs. Here's a practical framework for Michigan home-service businesses.
The short answer: 5–10% of revenue
Most established home-service businesses invest 5–10% of gross revenue in marketing; newer companies chasing aggressive growth often push to 10–15%. A $1M roofing company typically budgets $50k–$100k a year. But the percentage matters far less than what you do with it.
Spend by goal, not by habit
Your budget should follow your goals. Need jobs this week? Weight toward Google Ads and Local Services Ads. Building a durable, lower-cost pipeline? Invest in local SEO and your Google Business Profile, which compound over time. Most trades win with a blend of both.
The cost most contractors ignore
The biggest waste isn't ad spend — it's leads you already paid for that go cold. A lead you don't call back within five minutes is often gone. Budgeting for follow-up automation usually returns more than another dollar of ad spend ever would.
What good spend looks like
Well-spent marketing money is tracked to the job. Every call and form tied to its source, cost-per-lead and cost-per-booked-job measured, and budget shifted toward what books work. If you can't see which dollars produce jobs, that's the first thing to fix.
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Related services & industries
Common questions
What's a good marketing budget for a new contractor?
Is SEO or paid advertising a better use of budget?
How do I know if my marketing is working?
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