How Much Should a Contractor Spend on Marketing?

Ask ten contractors what they spend on marketing and you’ll get ten different answers, from “nothing but word of mouth” to “way too much on the wrong things.” So what’s the right number, and more importantly, where should it go? Here’s a straight guide, built from how trades actually win work.

In short: there’s no single right figure, but a common benchmark is 5 to 10 percent of revenue on marketing, more if you’re growing. What matters more than the percentage is where it goes: a website that converts, local SEO, reviews, and paid ads only once the foundations earn their keep. Spend on what brings jobs, not on what looks busy.

How much should a contractor spend on marketing?

The 5 to 10 percent of revenue benchmark is a fine starting point. Newer businesses or those pushing hard to grow often sit at the higher end; established outfits coasting on repeat work sit lower.

But percentages are a blunt tool. A sharper approach is to work backward from the numbers that matter: what is a customer worth to you, and what can you afford to spend to win one and still profit? If a typical job nets you $800 and you close one in three leads, you can spend real money to generate those leads and come out ahead. That math should drive your budget more than any rule of thumb.

Where should the budget actually go?

This is where most marketing money is won or lost. In rough order of priority for a contractor:

1. A website that converts. Fast, mobile-first, easy to contact. This is the hub every other channel points to. (What that takes.)
2. Local SEO. Getting found on Google for “near me” searches, which brings calls without paying per click. The best long-term value in the trades. (How it works.)
3. Reviews. A steady flow of genuine Google reviews. Nearly free, and one of the biggest drivers of both trust and rankings.
4. Google Ads and Local Services Ads. Paid visibility for instant work, once your site is ready to convert what they send. (Are they worth it?)

Notice the order. Paid ads come after the foundations, not before, because sending paid clicks to a weak website is like pouring water into a bucket with a hole in it.

What should you fund first?

If your budget is tight, spend it on the foundations: a site that actually converts, and the local SEO that gets you found for free over time. These compound. Every month they keep working, unlike an ad that stops the second you pause it.

Once those are pulling their weight, layer on paid channels to fill gaps and grab urgent, high-value jobs. That sequence, foundations first, then paid, is what separates contractors who get a return from those who just spend. You can see how it all fits together on the digital marketing in Denver page.

SEO or Google Ads for a contractor?

It’s rarely either/or. They do different jobs:

• Google Ads buy instant visibility, but the traffic stops when you stop paying.
• SEO takes months to build, then keeps bringing calls without paying per click.

For most contractors, the strongest play is running ads for quick work while SEO builds underneath. You get jobs now and you’re not renting all your visibility forever. Over time, as your rankings grow, you can lean less on paid clicks.

Do you need a local agency?

No. Web design, SEO and ads are all done online, so an agency doesn’t need to be in Austin, Charlotte or your own city to do great work. What matters is that they understand your market through real research, and that you get direct access to the person doing the work. A good remote setup often costs less and cuts out the layers.

If you’d like help figuring out where your marketing dollars would go furthest, get in touch and I’ll map it out together, no bullshit and no pressure.

Digital marketing for trades across the US

I work with contractors in Austin, Dallas, Phoenix, Tampa, Nashville, Charlotte and Denver, along with the towns and suburbs around them, all online and built around what actually wins you jobs.