As a remodeling, design/build, or landscape architecture firm, your P&L is a battlefield. Are you overspending on sales and marketing? Or starving your growth by spending too little? One competitor’s Instagram ads are relentless, another swears by word-of-mouth alone. The truth? Most firms are flying blind, wasting dollars or missing opportunities. Let’s cut through the noise with a proven, data-driven framework to allocate your sales and marketing budget for maximum impact.
The Myth of “Word-of-Mouth Is Enough”
Referrals are powerful, but they’re not a strategy. Projects take 6–18 months, and even loyal clients forget to mention you. Firms that break past $1M in revenue don’t rely on hope or unpredictable pipelines - they invest intentionally in sales and marketing systems that keep them top-of-mind and attract new prospects consistently. Here’s how.
The Budget Framework: Real Numbers, Real Results
Based on data from hundreds of firms, here’s what successful companies in your industry spend on sales and marketing, tailored to their growth goals:
- Maintenance Mode (0–5% growth): 3–5% of revenue
This covers basic Google Ads, a functional (if dated) website, and minimal lead flow. It’s survival mode for firms content with their size, relying heavily on repeat business. Best for: Established firms with 80%+ referral business, happy staying small. - Modest Growth (10–15% YOY): 6–9% of revenue
This fuels consistent lead generation through multiple channels—think targeted ads, updated content, and strategic trade show appearances. Best for: Firms aiming for steady growth with solid operations. - Aggressive Growth (20–30% YOY): 10–15% of revenue
Now you’re playing to win. This budget supports testing new channels, investing in SEO and content, and competing with market leaders. Best for: Firms ready to scale or enter new markets. - Market Domination (30%+ YOY): 15%+ of revenue
Big players treat sales and marketing as an investment, building systems for predictable revenue. Best for: Firms with strong margins aiming to own their category.
Let’s put that into perspective:
- A $2M remodeling company that wants to grow by 25% should be investing at least $200K annually in sales and marketing.
- A $750K boutique landscape architecture firm trying to increase quality leads should budget $60K–$100K a year (roughly $5K–$8K per month).
This isn’t a cost. It’s fuel. You don’t win the race by skimping on gas.
But Wait—Size Matters
Your market size changes everything. A landscape architect in Manhattan can justify spending 12% of revenue on marketing because one high-end project pays for a year of advertising. That same percentage might bankrupt someone in a small midwest town.
Large Markets (Metro areas 500K+): Competition is fierce, but the prize is bigger. You can spend more because the lifetime value of clients is higher and there are simply more prospects to reach. Expect to be on the higher end of each range.
Medium Markets (100K-500K population): The sweet spot. Enough competition to keep you sharp, enough prospects to grow, but not so saturated that you need a Fortune 500 budget to be seen.
Small Markets (Under 100K): Referrals and relationships rule here. You can often get away with lower percentages, but don't go too low or you'll lose share to companies willing to invest in growth.
Growth Stage Matters, Too
- Startup (Years 1–2): Spend 15–20% to get noticed. It’s painful but necessary to avoid obscurity.
- Growth (Years 3–7): 6–10% balances existing relationships with new lead generation.
- Maturity (8+ years): 3–5% can work if your reputation carries weight, but complacency risks losing ground.
The #1 Mistake to Avoid
Spending without tracking. A flashy website that generates no leads, Google Ads sending clicks to dead-end pages, or sponsoring events out of habit—these are budget killers. Instead, follow this:
- Track Everything: Every lead, conversion, and dollar spent.
- Test Smart: Give new channels enough budget and time to prove themselves.
- Scale Winners, Cut Losers: Double down on what works; ditch what doesn’t.
What This Actually Looks Like
Let's say you're a remodeling company doing $1.5M annually, wanting to grow 25% this year. That puts you in the 8-10% range, so $120K-150K marketing budget.
Instead of spreading it thin across twelve different tactics, you might invest:
- 40% in Google and Facebook ads (proven lead generators)
- 25% in SEO, content marketing and email nurturing (longer-term relationship building)
- 10% testing new channels like social media advertising or direct mail
- 25% optimizing your sales engine
The key is having enough concentrated firepower in each channel to actually move the needle.
Take Control of Your Growth
Our free pipeline inspection analyzes your current sales and marketing spend, pinpoints leaks, and delivers a 90-day plan to boost lead quality and ROI. Schedule your free pipeline inspection now—no pitch, just actionable insights. Act fast—spots are limited to ensure tailored results.
