How Much Does Marketing Cost?

What Can I Expect To Pay A Marketing Agency For A Home Service Business?

If you’re trying to understand how much does marketing cost, you’re not alone.

Most companies benchmark a percentage of revenue for marketing; across large firms, budgets have averaged about 7.7% of company revenue in 2024–2025. For home services, ad costs vary by trade and channel—search CPCs and conversion rates swing widely—which is why you should align spend to leads and booked jobs, not vanity metrics.

How Do Marketing Agencies Determine Pricing?

In a word: time. Most agency pricing reflects the hours and seniority required to plan, produce, and optimize work across channels. Tools matter, but labor drives cost.

“People tend to think an agency is super profitable, but after people costs the margins can be surprisingly thin,” notes Mark Sherwin, President & Co-Founder. “Simple tasks cost less; complex, specialized work costs more.”

Practical takeaway: ask for a breakdown by activities (strategy, content, media management, reporting) and who does the work (specialist vs. coordinator). Tie each activity to the outcomes you expect.

Why Do Prices Vary So Much Between Agencies?

Different delivery models create different price points. Some firms staff senior strategists and in-house creators; others rely on templated outputs or offshore fulfillment. Neither is inherently “bad,” but you should understand what you’re buying and how it maps to results in your trade.

For context while budgeting, compare this post with our guidance on signs you’re overspending on marketing and our pre-hire questions checklist.

How Do Some Agencies Keep Prices So Low?

There are three common plays behind bargain pricing:

1. Outsourcing without context. Writers and builders who have never spoken with you struggle to match your voice, service area realities, and seasonality.
2. Templated or unchecked AI output. Templates and unreviewed AI can move fast but often miss accuracy and differentiation—risking brand trust.
3. You don’t own the work. Low sticker prices sometimes hide leased websites or content. If you leave, you start from scratch. Always confirm asset ownership in writing.

What Should A Home Service Business Budget—In Practice?

Use revenue-based guardrails, then adjust by goals and capacity. If growth is the priority, many firms spend more during peak acquisition periods; if crews are maxed out, invest in reputation, upsell paths, and retention. Whatever you choose, track cost per lead and cost per booked job so spend stays profitable.

What To Ask Before You Sign

To make pricing meaningful, ask:

• What outcomes will this budget buy in leads, booked jobs, and timeline?
• Who is doing the work each week, and how will I see it?
• Which assets/accounts do I own if we part ways?
• What will we stop funding if results don’t materialize by a set checkpoint?

Set A Budget That Buys Outcomes—Not Just Activity

Budgets work when they’re tied to clear goals, transparent work, and asset ownership. If you want help sizing an effective plan for your trade and market, we’ll give you honest guardrails and tell you fast if we’re not the right fit.

Avoid wasted budget and stalled leads—talk with us about a right-sized marketing plan for your service area.

Frequently Asked Questions: Marketing Cost

Last updated: October 2025