Where the marketing money actually goes

Two different kinds of cost get called "marketing budget," and confusing them is why owners cannot tell whether it works. Here is the split, and what each part buys.

Module 5 of the Castells Media academy for contractors: Marketing basics.

Two costs, not one

Who should own the ad account

The three things marketing has to do, in order

Why "leads" alone is the wrong number

What a budget cannot buy

What a booked job actually cost you. Compare that with what you keep from a job. If a job leaves you $200, this month lost money; if it leaves you $900, it made money. That single comparison decides the budget, and almost nobody runs it.

Do this next: Ask whoever runs your marketing for two separate numbers this month: what went to the platforms, and what went to the work. If they cannot separate them, that is the first thing to fix.

Written by Castells Media, a marketing agency at 1298 Antelope Creek Drive, Roseville, California, working with home service businesses across the US.

Castells Media Inc, 1298 Antelope Creek Drive, Roseville, California