There’s no single number that works for every contractor, but there is a reliable range. Most established service businesses, including contractors, spend somewhere between 5% and 10% of gross revenue on marketing. If you’re actively trying to grow, take on new territory, or shake a heavy dependence on referrals, that number can push closer to 12–15% for a period.

A few things shift where you should land in that range:

• How new is your business? A newer contracting company usually needs to spend more up front to build visibility from scratch — there’s no existing reputation or review history doing work for you yet.
• How seasonal is your trade? Roofers, landscapers, and exterior-focused trades often need to front-load spend before their busy season so the leads are already warm when demand hits.
• How referral-dependent are you right now? If 80–90% of your jobs come from word of mouth, that’s not a budget problem — it’s a risk problem. One slow referral season and your whole pipeline dries up.

Rather than picking a number out of thin air, it helps to break the budget into categories: local SEO and your website, Google Business Profile management, short-form video and social content, and paid ads if you’re using them. A lot of contractors overspend on paid ads and underspend on the organic and video side, which is exactly the stuff that keeps generating leads for months after you’ve stopped paying for it.

If you want help figuring out what a realistic number looks like for your specific trade and market, EJ Studios works exclusively with contractors and trades businesses across Oregon and can walk you through it on a free call.