Ask ten contractors what they spend on marketing and you'll get ten wildly different answers. Some are dropping $2,000 a month on lead platforms and barely breaking even. Others have never spent a dime and rely entirely on word of mouth. Both approaches have problems.
The rule of thumb
Most business advisors recommend spending 5-10% of revenue on marketing. For a contractor doing $200K a year, that's $10,000-$20,000 — or roughly $800-$1,700 per month.
But here's the thing: that's a guideline, not a rule. What matters more is your cost per acquired customer and whether you're getting a positive return.
Calculate your real cost per customer
Before you set a budget, figure out what you're actually paying to land a job right now. Here's the formula:
Total marketing spend / Number of jobs landed = Cost per customer
If you're spending $500/month on a lead platform and landing 3 jobs from it, your cost per customer is about $167. If those are $3,000 jobs, you're spending 5.5% on acquisition — that's solid.
But if you're spending $500/month and only landing 1 job, that's $500 per customer. On a $2,000 job, that's 25% — way too high.
Where to put your money
Not all marketing dollars are equal. Here's what actually works for contractors, ranked by return on investment:
1. Google Business Profile (free) — If you haven't claimed and optimized your Google listing, do this before spending a penny on anything else. Add photos, respond to reviews, keep your hours updated. This is how most homeowners find local contractors.
2. Reviews and referrals (nearly free) — Ask every happy customer for a Google review. Set up a simple referral program ("refer a friend, get $50 off your next service"). Referral leads close at 40-60%.
3. Flat-fee lead platforms ($59-$119/mo) — Platforms like Lead Blueprint charge a flat monthly fee with no per-lead charges. At $59/month, you only need to land one small job to pay for the entire year. Compare that to per-lead platforms where you're paying $50-$85 per lead whether it converts or not.
4. Social media (free but time-intensive) — Post your work on Instagram, Facebook, and TikTok. Before/after photos perform incredibly well. You don't need to go viral — you just need local homeowners to see your work.
5. Paid ads ($300-$1,000/mo) — Google Ads and Facebook Ads can work, but they require testing and optimization. Don't start here unless you've maxed out the free options above.
What to avoid
Start small and track everything
If you're just starting out, here's a simple first-year plan:
Track where every lead comes from. After 3 months, double down on what's working and cut what isn't. Marketing doesn't have to be complicated or expensive — it just has to be consistent.