Growth Needs a Plan, Not a Guess
Every home service business owner eventually asks the same question: how much should I be spending on marketing?
It is one of the most important decisions you'll make as an owner. Yet for many, the answer is vague or inconsistent. Some choose a number based on gut feel or what is left over at the end of the month. Others go all in when business slows down and pull back the moment things get busy again.
The result is unpredictable growth, wasted opportunity, and marketing that feels more like a cost than a tool for scale.
This article is here to offer clarity. No buzzwords or generic percentages, just practical insight into how much to invest and how to make that investment work for you.
Marketing Spend Reflects Intent
Marketing is not just another line item on your profit and loss statement. It is the engine that creates visibility, supports pricing power, and builds long-term stability. Your marketing budget is a reflection of what you want your business to achieve.
If your goal is to stay flat and maintain your current level of work, your budget will look one way. If your goal is to expand, increase your ticket size, or enter new service areas, your budget will need to support that ambition.
This is not just about spending money. It is about making sure your visibility matches your goals.
How Much Should You Spend?
There is no universal number, but there are established benchmarks that work well for most home service businesses.
- Three to five percent of annual revenue is typical for companies focused on maintaining their current visibility and lead flow.
- Six to ten percent is more appropriate for companies that want to grow. This level of investment allows you to generate more demand and build the systems to track and improve performance.
- Ten percent or more is often necessary for companies scaling aggressively or expanding into new markets.
These numbers provide a range, not a rule. What matters most is that your investment aligns with what your business is trying to accomplish. Too often, owners expect growth-level results from a maintenance-level budget, which leads to frustration and inconsistent performance.
Budgeting Based on Your Business Model and Capacity
Marketing spend should be calibrated to your actual capacity. A solo operator with a $500,000 business and a $5 million multi-crew operation will have very different needs.
If your team is already booked out for two weeks and you are struggling to find talent, increasing lead volume may create more chaos than benefit. In that case, your budget might shift to brand building, employee marketing, or improving operational efficiency.
On the other hand, if you are entering a slow season, launching a new service, or expanding into a new service area, a more aggressive lead generation strategy is appropriate. Your marketing budget should be flexible enough to support those shifts in real time.
Why a Monthly Budget Beats an Annual Guess
Annual budgets are helpful for long-term planning, but marketing is more effective when it is managed monthly. That gives you the opportunity to respond to seasonal trends, adjust based on campaign performance, and reallocate money as needed.
A monthly cadence also helps you avoid overspending during slow periods or underspending during peak demand. At the start of each month, review your past spend, look at lead volume and quality, and adjust based on what the business needs right now. This approach gives you both discipline and flexibility.
A Marketing Budget Should Deliver Measurable Return
A smart marketing investment should feel like momentum. You should see an increase in call volume, better-fit customers, stronger close rates, or improved local visibility. If you are spending several thousand dollars per month and still asking, “Is this even working?” then something needs to change.
Either the strategy is not aligned with your goals or you are not tracking the right indicators. Marketing is not about activity. It is about outcomes.
The Best Budget Is the One That Matches Your Strategy
There is no magic number, but there is a right approach. Set a monthly budget that aligns with what your business needs to achieve, not what feels safe in the moment. Make sure that budget supports the channels that work for your specific market. Most importantly, make it part of a system you can evaluate and improve over time.
You do not need to outspend your competitors. You need to outplan them.
