How much should a service business spend on marketing? An honest framework.

Every blog says '7–10% of revenue'. That's useless if you don't know what to spend it on. Here's a framework we actually use with clients.

Under $500k revenue

Budget: $1,500–$3,000/mo. Priority: a real website, basic local SEO, and one paid channel (Meta or Google). Don't try to run three platforms with no in-house operator.

$500k–$1.5M revenue

Budget: $3,000–$6,000/mo. Priority: paid ads in both channels, weekly content on social, call tracking, and the AI Voice Rep so capacity doesn't bottleneck growth.

$1.5M–$3M revenue

Budget: $6,000–$12,000/mo. Priority: dedicated funnels per service line, retargeting, branded video, and reputation management. SEO becomes a serious investment, not an afterthought.

$3M+

Budget: $12,000+/mo, often a percentage of revenue. Priority: market dominance in your service area, brand recognition, and verticals — not just leads. At this stage marketing is also a recruiting tool.

The honest part

Most service businesses underspend. Not by 10% — by 50–70%. The ones that win are the ones who treat marketing as a fixed cost line, not a 'this month if we have it' expense.