# How much should a contractor spend on marketing?

By Banish Angural · Published June 3, 2026 · Updated November 9, 2026

> Many home-service businesses budget a percentage of revenue for marketing, often somewhere around 5 to 10 percent, higher when growing fast. A better method starts from your numbers: how many extra jobs you want, your average job value, your close rate and what you can afford per job. Then split between ads for leads now and SEO for cheaper leads later.

## Start from jobs, not percentages

1. How many extra jobs a month do you want?
2. What is an average job worth?
3. What share of leads do you close?
4. What can you afford to pay per booked job and still profit?

Example: you want 10 more jobs, close 1 in 3 leads, and can pay $300 per job. You need 30 leads, at up to $100 each, so about $3,000 a month in marketing.

## How to split it

- **Google Ads / Local Services Ads:** leads now, adjustable any month.
- **Local SEO:** cheaper leads over time; slower to start.
- **Website:** a one-time cost that multiplies everything else.
- **Reviews and follow-up:** cheap, high return.

## Adjust by season

Spend more ahead of and during your busy season, less in slow months, but keep SEO steady all year.

## Want a budget built on your numbers?

In a [free audit](https://banishmedia.com/free-audit) we work out a realistic cost per job for your trade and area and suggest a split.

## Sources

- [Google Ads Help Center](https://support.google.com/google-ads/), Google

## Questions readers ask

### What percentage of revenue should a contractor spend on marketing?

Often somewhere around 5–10%, more when growing. Working back from your target jobs, close rate and affordable cost per job is more reliable.