How Much Should a Home Service Business Spend on Marketing?

One of the most common questions we hear: "How much should I be spending on marketing?" It's a fair question — and the answer depends on where your business is and where you want it to go.

The General Rule

The Small Business Administration recommends spending 7-8% of gross revenue on marketing for businesses under $5 million in revenue. For home service businesses that are actively trying to grow, we typically see the sweet spot at 5-10% of revenue. If you're doing $500,000/year, that's $25,000-50,000 annually, or roughly $2,000-4,000/month.

Breaking Down the Budget

Here's how a typical home service marketing budget might look:

• Website (one-time + maintenance): $1,500-5,000 upfront, then $99-199/month for hosting and maintenance
• Local SEO: $500-1,500/month for ongoing optimization
• Google Ads (optional): $500-2,000/month in ad spend + management fees
• Review management tools: $50-100/month
• Directory listings: $0-200/month (many are free)

Where to Start If You're on a Tight Budget

If you can only afford one thing, invest in a professional website with local SEO. This is the foundation everything else builds on. A well-optimized website with call tracking will generate leads 24/7 and give you clear data on what's working. Once you see ROI, you can reinvest and expand.

The Cost of NOT Marketing

Here's the thing most business owners don't calculate: the cost of doing nothing. If your average job is worth $500 and you're missing even 10 leads per month due to poor online visibility, that's $5,000/month in lost revenue. A $500/month marketing investment that captures even a fraction of those missed leads pays for itself many times over.

Think ROI, Not Just Cost

Don't think about marketing as an expense — think about it as an investment with measurable returns. If you spend $500/month on lead generation and it generates 20 calls that turn into 5 booked jobs at $500 each, that's $2,500 in revenue from a $500 investment. Track your numbers, and the budget decisions become obvious.

Need help figuring out the right marketing budget for your business? Contact us for a free consultation. We'll give you an honest assessment based on your market, competition, and growth goals.