How Much Should Contractors Spend on Advertising?: Calculating ROI and Scaling Your Ad Budget
A mathematical approach to setting your marketing budget based on your revenue goals.
Advertising is not an expense; it is math. Once you know your Cost Per Acquisition (CPA) and your Average Job Value, you can scale your business predictably.
Working Backwards from Revenue
If your goal is $100,000 in new revenue, and your average job is $5,000, you need 20 booked jobs. If your close rate is 25%, you need 80 qualified leads. If your cost per lead is $50, your ad budget should be $4,000.
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How Much Should Contractors Spend on Advertising?
A mathematical approach to setting your marketing budget based on your revenue goals.
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