You put money into ads and the phone stayed quiet. Now you don't know what to spend. You'll hear rules of thumb like “spend a set percent of revenue.” My take: a percentage is only a starting guess. Three questions set your real number: what a customer is worth to you, whether your free basics are done, and whether you're holding steady or trying to grow.
A marketing budget only makes sense next to what a customer is worth. For example, a customer worth $150 one time can't justify much to win them. A customer worth $5,000 a year can justify a lot more. Work it backwards: what you'd happily pay for one new customer, times how many new customers you want this year. That's your ceiling. My take: it's a better guide than any percentage. Skip this math and you either starve a business that could grow, or pay more for customers than they bring back.
Before you pay for clicks, finish the free basics: a complete Google Business Profile, reviews you ask for every time, a site that answers what customers search for, and the same correct info on every listing. Google says businesses with complete and accurate info are more likely to show up in local search results, and that more reviews and positive ratings can help your local ranking (Google Business Profile Help). That work costs time, not money. My take: an ad that sends people to a half-empty profile pays for visits that don't turn into calls.
My take: once your basics work and you've done the customer math, a percentage of revenue is fine as a starting point. Pick one you can afford to test. The SBA's marketing guide tells you to include a complete breakdown of the costs of your marketing plan (SBA). Then track spend to booked work: cost per customer, not clicks or views. Check every three months and move money toward whatever brings in customers. Your budget is a test you keep running, not a promise.
I won't give you one percentage for every business, because I don't have a source I'd stand behind. The SBA's marketing guide doesn't set one either. It tells you to break down the costs of your marketing plan (SBA). My take: start from customer math. What is a customer worth, what will you pay to get one, and do your free basics turn visitors into calls before you buy traffic?
Spend more time than money at first. Your profile, reviews, site and listings cost effort, not cash. My take: pay for ads once something is turning visitors into customers. Then a bigger push at launch can help people learn your name.
Yes. Your profile, reviews and site are what people see when they look you up. My take: they also decide whether a paid click turns into a call. Google says more reviews and positive ratings can help your local ranking. My take: most owners have more room to improve there than they think.
One number: cost per customer, tracked by channel to real booked work. If you can't tell where a customer came from, fix the tracking before you raise the budget. My take: a budget you don't measure only ever grows.
Not sure if customers searching in your town can find your business? Email alejandro@ojedaworks.com and I'll check for free.
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