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Painting Biz Owners: Manage Your Ad Spend with Targeted Revenue Brackets. #MarketingMentality

Name: Painting Biz Owners: Manage Your Ad Spend with Targeted Revenue Brackets. #MarketingMentality
Uploaded: 2024-09-12T14:18:30+00:00
Duration: 53 s
Channel: Daniel Honan
Description: In this video, the speaker advises painting business owners on how to manage their advertising spend as they grow. For businesses generating up to…

12 Sept 2024 · 1 min

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In this video, the speaker advises painting business owners on how to manage their advertising spend as they grow. For businesses generating up to roughly $250,000–$500,000 in annual revenue, marketing should be handled in‑house, with a focus on Google Local Services Ads—a pay‑per‑lead channel that typically costs $20–$50 per lead and relies heavily on reputation. Once a business reaches the $500,000 revenue mark, the speaker recommends hiring an external agency to manage ad spend, warning that this service is not cheap. He suggests budgeting $3,000–$5,000 per month on the low end, noting that some firms spend $10,000–$20,000 per month. As lead acquisition costs rise, owners should increase their service rates to protect margins and maintain profitability, emphasizing the importance of knowing the numbers.

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So if you're doing between $0 and somewhere around $250,000 to $500,000 a year, you should be handling your marketing on your own. You can easily scale your business to that point with very little investment within advertising. Local services ads in particular are very much based around reputation. It's a pay-per-lead channel on Google. They're exclusive leads to your business, and we see leads come in at somewhere between $20 and $50 a lead in most markets. When you get to that $500K mark, that's when you want to start looking into having somebody else jump in and manage your ad spend. Do not expect it to be cheap. We really recommend budgeting somewhere between $3,000 to $5,000 a month on the low end. We have some guys doing $10,000 to $20,000 a month. I would say that's probably like on the mid to high end. Just be prepared to invest. It is getting more and more expensive to acquire calls on Google, but that's really where you should also be increasing your rates. Just because it's more expensive doesn't mean you need to stay static as well. Maintain those margins. Know your numbers. That's so important.