Home Service Marketing Spend, 2026 Benchmarks

How Much Should I Be Spending?

The easy calculation for this is to spend between 5-10% of your monthly revenue on marketing.

Yes, you heard that right.

The company in your area that is doing $12 Million a year, they’re spending $100k/m on marketing.

Weather they’re running Meta Ads, Google Ads, Microsoft ads. From the outside you can’t see that number, but from the inside.

They’re seeing leads flying in at a consistent rate due to their spending and it allows them to set more appointments and close more deals.

Truly, when you figure out how to consistently set appointments and close deals, it’s just a question as to, “How much more money do we have to put into this thing?”

Why Spending More = More Sales

Now i need to caveat this and be clear, if you don’t have any setting processes and your salesman are only trained on closing storm jobs, you’ll have a really hard time closing these deals

Now on the other hand if your salesman are trained killers who can consistently go to the door and close at the table, this will work. . .

So i want to introduce Contractor Math

When you build a system that can consistently pump out leads at a flat price, or you work with a lead aggregator like ourselves.

All you need to do to get to your desired outcome (aka revenue goal) is to do the math on what will it take in marketing spend to get here

Now this doesn’t include the fact when you double your sales team you’ll need to get double the trucks, maybe larger training rooms, more setters.

The way this works is you need to gather some data first.

 

What Is Your Set Rate?

What Is Your Blended Close Rate? (Not Counting Storm Work Or Referrals)

What is your cost per lead?

What is your average ticket?

What is your desired revenue?

 

Once you’ve got those numbers follow along with me on the math part

P.S. You could also talk to a custom GPT we put together that will run through this with you https://chatgpt.com/g/g-69bb47919d18819188f1afcc049bcb19-contractor-math-stoymedia- 

 

You first need to start at your desired revenue, lets say $10,000,000 per year

From there you divide that by your average ticket (Lets say $10,000) to find out how many projects you need to do

$10,000,000 / $10,000 = 1000 Projects

From there, divide that by your close rate to find out how many appointments you need to run

1000 / 0.3 (30% Close Rate) = 3333 appointments

From there you need to divide that by your set rate to find out how many leads you need to get there

3333/0.3 (30% Set Rate) = 11,110 leads

From there you multiply your lead cost by the amount of leads you need to get there

11,110 * $75 per lead = $833,250 in marketing spend

Therefor if you have a rigid marketing spend where everything is perfect you’ll be undershooting your 5-10% to get to where you want to be.

But who’s ever had a perfect campaign where things are $$$ in, leads out consistently??

So if we factor $10,000,000 a year is $833k a month,

10% of 833,000 is ~ 83,000

$833,250 a year in marketing spend is ~ 70k/m

So right about there, not factoring in if you have a lower / cost per lead.

 

Also if you need any help with your marketing or want a consistent lead source, visit https://stoymedia.com/book-a-call to schedule a free discovery call today.