For remodeling, design/build, and landscape architecture firms, every dollar counts. But how do you decide where to allocate your budget to maximize growth without wasting resources? The answer lies in a strategic, data-driven approach that balances immediate returns with long-term brand strength. Enter the 60-20-20 Rule - a proven framework to split your marketing budget across advertising, content, and moat-building initiatives. This approach ensures your firm drives leads today while building a defensible market position for tomorrow.
The 60-20-20 Framework Breakdown
60%: Immediate Revenue Generation
This is your "bills-paying" budget—the money that should generate jobs within 90 days.
Examples:
- Google LSAs for high-intent keywords
- Remarketing efforts
- Direct mail to targeted neighborhoods
The catch: These dollars only work if your sales pipeline actually converts leads into contracts. Spending 60% on lead generation while closing only 15% of prospects is like pouring water into a broken bucket.
20%: Relationship and Authority Building
This is your "trust-building" budget with investments that compound over time and reduce your customer acquisition costs.
Examples:
- Content marketing and SEO
- Video case studies
The insight: Contractors who skip this category stay trapped in expensive lead generation forever. Those who invest here gradually reduce their dependence on paid advertising.
20%: Competitive Moat Building
This is your "future-proofing" budget—small investments that create sustainable advantages competitors can't easily copy.
Examples:
- Proprietary customer experience systems
- Advanced CRM automation and attribution
- Strategic market positioning initiatives
- Process improvements that become selling points
The reality: Most contractors spend zero dollars here, which is why they compete solely on price. The 10% investment creates the differentiation that commands premium pricing.
Why This Framework Prevents Marketing Waste
Problem #1: The "More Leads" Trap Many contractors assume they need more leads when they actually need better conversion. The 60-20-20 rule forces you to evaluate whether your pipeline can handle the leads you're buying.
Problem #2: No Compounding Returns Spending 100% on immediate generation creates a marketing treadmill. You're always hunting for the next lead. The 20% relationship investment creates compounding returns that reduce future acquisition costs.
Problem #3: Commodity Competition Without moat-building investments, you're forever competing against every other contractor with a Google Business Profile. The 20% creates sustainable advantages that justify higher pricing.
Ready to Optimize Your Budget?
Every business has unique needs, but the 60-20-20 Rule provides a starting point to allocate resources effectively. Want to see how your current budget stacks up? Our free Funnel Inspection analyzes your marketing spend, identifies gaps, and provides actionable insights to boost your ROI. Don’t leave money on the table. Schedule your free funnel inspection today and let us help you build a budget that drives growth and strengthens your brand.
