There is no perfect number, but there is a reliable way to decide. This guide gives you a starting point, a step-by-step method to set your own budget, a sample split for a small company, and the one number you should use to judge every dollar you spend.
Start With the Rule of Thumb
The U.S. Small Business Administration has suggested that small businesses with revenue under $5 million put 7 to 8% of revenue into marketing, assuming profit margins around 10 to 12% (SBA, archived). Treat it as a sanity check, not a rule.
| Your situation | Where you might land |
|---|---|
| Holding steady, strong referrals | Lower end |
| Growing, adding trucks or techs | Higher end |
| New company or new service area | Possibly above the range for the first months |
| Thin margins | Spend carefully and fix lost calls first |
The Better Method: Work Backwards From Jobs
Step 1: Know your numbers
Pull these from your job software or CRM for the last 6 to 12 months:
- Average ticket for repairs and for installs
- Booking rate (booked jobs divided by leads)
- Cost per lead by channel, if you track it
- How many extra jobs your team can handle
Step 2: Do the math
Example (made-up numbers): you want 25 more repair jobs a month. You book 40% of leads. So you need about 63 leads. If a lead from Local Services Ads costs you around $55, that channel needs about $3,450 a month. If your average repair ticket is $450, those 25 jobs bring about $11,250 in revenue.
Step 3: Check it against profit, not revenue
Ask: does the gross profit from those jobs cover the spend with room to spare? Remember that a share of repair customers later buy maintenance plans or replacements, so the real value of a new customer is often higher than the first ticket.
Where the Money Usually Goes
| Area | What it covers | Why it matters |
|---|---|---|
| Call handling | Missed-call text back, answering service | Saves jobs you already paid for |
| Google profile and reviews | Profile care, review requests, replies | Low cost, high-intent calls |
| Website and SEO | Service pages, town pages, speed, technical fixes | Builds leads you own |
| Paid ads | Local Services Ads, search ads in peak season | Fast calls when you need them |
| Customer marketing | Tune-up reminders, maintenance plans, referrals | Cheapest jobs to win |
A Sample Monthly Split
Example only for a small company spending $4,000 a month. Your mix will differ.
| Item | Share | Example amount |
|---|---|---|
| Paid ads (mainly Local Services Ads) | 45% | $1,800 |
| SEO and website | 30% | $1,200 |
| Reviews, profile and follow-up tools | 15% | $600 |
| Customer marketing and reminders | 10% | $400 |
Build the base first: profile, reviews, website and follow-up. Ads on top of a weak base often waste money, because more of the calls they bring are missed or lost.
Time Your Spend With the Seasons
HVAC demand follows the weather. A simple pattern:
- Shoulder seasons (spring and fall): spend on tune-up campaigns, maintenance plans and website work. ENERGY STAR recommends pre-season check-ups in spring for cooling and fall for heating (ENERGY STAR).
- Just before peak: raise ad budgets a few weeks ahead of the first heat wave or cold snap.
- Peak: keep ads running only as long as you can answer and book the calls.
Our HVAC marketing calendar shows this month by month.
Judge Everything by Cost per Booked Job
Cost per click and cost per lead can fool you. A cheap lead that never books is expensive. Track:
| Metric | Formula |
|---|---|
| Cost per lead | Channel spend divided by leads |
| Booking rate | Booked jobs divided by leads |
| Cost per booked job | Channel spend divided by booked jobs |
| Return | Gross profit from those jobs divided by spend |
Use call tracking numbers for each channel and record the source of every job in your CRM. Review monthly, and move money toward the channels with the lowest cost per booked job.
Five Ways to Get More From the Same Budget
- Fix missed calls first with missed-call text back.
- Start paid search with Local Services Ads before broad search campaigns.
- Follow up on every install quote. See how to get more HVAC leads.
- Grow maintenance plans, since repeat work costs far less to win.
- Ask every customer for a review. See our review guide.
Questions to Ask Any Agency
- Will you report cost per booked job, not just clicks and leads?
- Who owns the website, ad accounts and tracking numbers?
- What happens in the first 30 and 90 days?
- What contract length do you require?
Our HVAC marketing plans start with a $1 full audit, so you can see where your money would do the most good before you spend more.
Sources
Want this done for you?
Start with our $1 full audit: your Google Maps ranking, reviews, website and missed calls, plus a 30-minute video walkthrough.
Frequently Asked Questions
What percentage of revenue should an HVAC company spend on marketing?
A common starting point is the SBA guideline of 7 to 8% of revenue for businesses under $5 million with healthy margins. Growing or new companies often spend more for a while.
Is it better to spend on SEO or ads?
Both have a role. Ads bring calls fast but stop when you stop paying. SEO and reviews take months but keep working. Most companies build the base first, then add ads.
How do I know if my marketing is working?
Track cost per booked job for each channel and compare it with the gross profit from those jobs. If profit is higher than cost, it is working.
Should I cut marketing in slow months?
Cut some ad spend, but keep working on reviews, website pages and maintenance plans. That makes the next busy season easier and cheaper.
What is a good cost per booked job for HVAC?
It depends on your ticket size and margins. The right number is one where the gross profit from the job, plus likely repeat work, is clearly higher than the cost.
More HVAC Marketing Guides
Or see how it all fits together on our hvac marketing service page.
