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How Much Should a Contractor Spend on Marketing?

AP By Aaron Phillips · Booked Job · Updated June 2026
Short answer: The common rule is 5–10% of revenue, but that's the wrong frame. Budget by cost per booked job: spend where a customer costs less than the job is worth, starting with the free channels you already own.

Most guides say 5–10% of revenue. Fine as a ceiling — but it tells you nothing about whether a dollar works. The real question: does a channel book jobs for less than the job is worth? Angi ~$542/booked job vs Google LSA ~$168 answers that fast.

5–10%
Of revenue is the common rule — but cost per booked job is the number that matters

The percent rule is a starting point, not the answer

Budget by cost per booked job, not a flat percent.

Most guides say 5–10% of revenue. Fine as a ceiling — but it tells you nothing about whether a dollar works. The real question: does a channel book jobs for less than the job is worth? Angi ~$542/booked job vs Google LSA ~$168 answers that fast.

Start with the channels you already own

Free channels first — they have the best return.

A complete Google Business Profile, steady reviews (91% won't consider under 4 stars — BrightLocal 2026), and a referral system cost almost nothing per lead. Max these before paying for anything.

Then add paid where the math works

Pay per booked job, not per lead.

Google Local Service Ads (~$168/booked job, pay per lead) is usually the first paid dollar. Track spend ÷ jobs booked per channel monthly; kill what loses, feed what wins. And answer fast — 78% hire the first responder (Lead Connect 2026).

Frequently asked questions

How much should a small contractor spend on marketing?

A common rule is 5–10% of revenue, but budget by cost per booked job instead. Max your free/owned channels first, then add paid where a customer costs less than the job is worth (e.g. Google LSA ~$168/booked job).

What's a good cost per lead for a contractor?

Cost per lead is the wrong metric — it hides your close rate. Track cost per booked job: ~$542 via Angi vs ~$168 via Google LSA once close rates are counted.

Where should a contractor spend first?

Free/owned channels — Google Business Profile, reviews, referrals — then Google Local Service Ads. Answer every lead fast; 78% hire whoever responds first (Lead Connect 2026).

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