What percentage of revenue should a home-service business spend on marketing?

Established home-service companies typically spend 5 to 10 percent of revenue on marketing, and companies pushing hard for growth spend 10 to 15 percent. A $1 million contractor at 8 percent is putting about $6,600 a month across everything: SEO, website, ads, branding, and review generation.

Newer companies under $500,000 usually need a higher percentage because they are building awareness from zero, while a mature $5 million operation with a deep referral base can hold near 5 percent. The number that actually matters is your cost per booked job compared to your gross profit per job.

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