Marketing budget is one of those questions that gets vague answers because it depends so much on circumstances. But "it depends" isn't useful when you're trying to decide whether to spend £500 on a new website or £150 a month on directory listings.
Here are some concrete benchmarks, and a way of thinking about it that should help you make better decisions.
The General Rule of Thumb
Most small businesses spend between 5-10% of their revenue on marketing. For a sole trader turning over £60,000 a year, that's £3,000-£6,000 annually, or £250-£500 a month.
For trade businesses that are growing and want to grow faster, the upper end of that range (or beyond) is reasonable. For an established business with a full diary and more work than it can handle, the lower end may be sufficient.
The key question isn't "what's the right amount"; it's "what return am I getting on what I'm spending?"
The One-Off Investments (Worth Prioritising)
Some marketing investments are one-off costs that continue paying back for years:
A well-built website is the clearest example. A professionally built site that ranks well on Google, converts visitors into enquiries, and represents your business credibly is one of the best long-term investments you can make. Cost depends entirely on scope, so it's worth talking through what you actually need rather than fixating on a figure. Spread over five years of use and consistent enquiry generation, the return is straightforward.
Google Business Profile setup and optimisation is essentially free but takes time to do properly. Done once and maintained, it can put you in the map pack for your area, worth significantly more than its cost.
These foundation investments have the best return on investment of any marketing spend for most trade businesses.
The Ongoing Costs (Evaluate Carefully)
Directory listings (Checkatrade, Rated People, MyBuilder) typically cost £800-£2,000 per year. The question to ask is: how many jobs did I actually win through this platform last year, and what were they worth? If the answer is "I'm not sure," it's worth tracking for a quarter before renewing.
Google Ads can generate leads reliably but require budget to sustain: typically £200-£500 per month minimum to run a meaningful campaign in Sussex. Below that threshold, the campaign volume isn't high enough to optimise properly.
Social media advertising (Facebook and Instagram ads) can work but require more management than most sole traders have time for. Unless you're confident with ads or have someone managing them, it's rarely the first place to invest.
The Low-Cost, High-Return Activities (Do These First)
Before spending money on advertising, make sure you're doing the things that are essentially free:
- Asking every satisfied customer for a Google review (and actually following up)
- Posting regular photos of your work to your GBP listing
- Making sure your website loads fast and has a visible phone number on mobile
- Having your website appear in your email signature and van signage
- Responding to all Google reviews, both positive and negative
These activities compound over time and build a presence that advertising can't replicate at any price.
How to Think About It
Rather than setting a fixed marketing budget, think in terms of cost per lead. A one-off website investment that generates steady enquiries month after month gets cheaper every year it stays live and ranked. A directory subscription renews every year whether it delivered or not. Compare them on cost per lead and the maths usually favours the asset you own.
Most tradespeople who think they "can't afford" to invest in their digital presence are actually spending more on marketing overall, just on channels that don't compound in the same way.
If you want help working out where your current spend is going and what would give you the best return, get in touch.
