How Much Should a Contractor Spend on Marketing?

By Parker Lindsey, Co-Founder of Reno Rise

A common rule of thumb is that home contractors invest somewhere between 5% and 10% of revenue in marketing — newer businesses often higher to build momentum, established ones lower. But the percentage matters far less than the return. What actually counts is your cost per booked job: whether each marketing dollar brings back more than it costs.

The quick answer: a percentage of revenue

As a starting point, many home-service businesses budget 5–10% of their revenue for marketing. If you're newer or trying to grow fast, you'll likely sit at the higher end; if you're established with steady referrals, you may spend less. Treat this as a loose guardrail, not a rule — it varies widely by trade, market, and goals.

Why the percentage is the wrong thing to obsess over

A percentage tells you what to spend, not whether it's working. Two contractors can both spend 8% of revenue and get completely different results — because what matters is the return on each dollar, not the size of the budget. The better question isn't "what percentage should I spend?" It's "what does it cost me to book a job, and how much is that job worth?"

What actually drives your marketing budget

A few things move the number more than any benchmark:

• Your average job value. A remodeler closing $40,000 projects can spend far more to land one job than a handyman doing $400 tickets.
• Your growth goals. Filling a half-empty schedule takes more investment than topping up an already-busy one.
• Your market. More competitive areas cost more to reach homeowners in.
• Your channel. Paid ads, SEO, referrals, and lead lists all have very different cost and speed profiles.

How to think about cost per booked job

Here's the math that actually matters. Say your average job is worth $10,000 and you close one of every three estimates you run. That means each booked estimate is worth roughly $3,300 to your business. Suddenly the question "is it worth paying to get an estimate on the calendar?" has a clear answer — as long as your cost to book one stays well below what that estimate is worth, you're winning. Budget percentages can't tell you this; unit economics can.

Paying for results instead of budgets

This is exactly why the model you choose matters as much as the number. With most advertising, you spend a budget and hope it produces. The alternative is paying for outcomes. At Reno Rise, we cover the ad spend ourselves and clients pay per showed appointment — an estimate where both the contractor and homeowner show up — so the cost is tied directly to a real opportunity to win a job, not to a budget you're gambling. See how the system works or our appointment setting service.

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