Paying for leads
How much should a tree service company spend on ads?
By Zachary Spencer, founder of Zenith Co.
Published
Work back from your own numbers: how many more estimates your crews can take each week, and what one shown estimate is worth to you (average job value times close rate). Then make sure the budget is big enough to learn from. We ask for at least $50 a day, about $1,500 a month, because below that a month of ads produces too few leads to tell what's working.
"How much should I spend?" is usually the first question on a call, and "it depends" is a useless answer. It does depend, but on three numbers you already know or can find out in ten minutes. This is how to turn them into a budget.
Step 1: How many more estimates can you handle?
Start with capacity, not ambition. If your crews are booked two weeks out, more ads just create a longer wait and unhappy homeowners. If you have two crews and room for another eight jobs a month, that's your target, and the number of estimates you need depends on how many you close.
If you close about a third of the estimates you walk, eight more jobs means about twenty-four more shown estimates a month, or six a week.
Step 2: What is one shown estimate worth?
Multiply your average job value by your close rate. With a $1,000 average job and a one-in-three close rate, each estimate where the homeowner is there brings in about $330 of work. That's the most you could spend to get one and break even on revenue. In practice you want to spend well under it, because the job has costs of its own.
The $1,000 and one in three are example inputs. Your own numbers can be much higher or lower, especially if you do a lot of large removals or a lot of small trims. The calculator on our homepage does this math with yours.
Step 3: Make sure the budget can teach you something
A budget has to buy enough leads in a month to see a pattern. At a few dollars a day you might get a handful of leads in a whole month. Three good ones could be luck. Three bad ones could be bad luck. Either way you can't tell whether the ads work, and the ad platforms don't have enough to go on either.
That's why we set a floor of $50 a day, about $1,500 a month, before we'll take on a company. It's not a magic number. It's the point where a month of ads gives both of us enough to judge.
Putting it together
- Decide how many more shown estimates a week you want, from your crew capacity and close rate.
- Work out what one is worth to you: job value times close rate.
- Start at or above the floor and run it for at least a month before judging.
- Look at cost per shown estimate, not cost per click or cost per lead. Add up everything you paid (ad spend and fees) and divide by the estimates where the homeowner was there.
- Raise the budget when the cost per shown estimate is well under what one is worth and your crews have room. Lower it or pause when they don't.
Budget mistakes we see
- Changing the budget every few days. A slow Tuesday isn't a trend. Give it weeks, not days.
- Judging by cost per lead. Cheap leads that never book cost more than expensive ones that do.
- Spending when you're booked out. Pause ads when the calendar is full. Leads that wait three weeks for an estimate go elsewhere.
- Forgetting the follow-up. No budget is big enough to make up for calling leads back the next day. Why speed matters most.
Where the money goes with us
Your ad spend goes from your card straight to the ad platforms, in ad accounts in your business's name. We never touch it or mark it up. Our fees are separate: a one-time setup fee and a flat fee per shown estimate, both set on the call. If you're booked out, block the days on your calendar, or email us and we'll pause the ads. The full terms.
Questions about ad budgets
How much should a tree service company spend on advertising?
Work back from how many more estimates your crews can take and what one shown estimate is worth to you (average job value times close rate), and spend enough to learn from in a month. Zenith Co. asks for at least $50 a day, about $1,500 a month, in ad spend.
What is the minimum ad budget for a tree company?
There's no universal minimum, but a budget of a few dollars a day produces too few leads in a month to tell whether the ads work. Zenith Co.'s minimum is $50 a day, about $1,500 a month, paid to the ad platforms on your own card.
How do I know if my tree service ads are working?
Track cost per shown estimate: everything you spent on ads and fees, divided by the estimates where the homeowner was there. Compare it with what one shown estimate is worth to you. Judge over a month or more, not a few days.
Should I keep ads running when we're booked out?
No. Leads that have to wait weeks for an estimate tend to book someone else. Block off full days on your calendar so nobody can book them, and pause the ads if you're booked out for weeks.
Who pays the ad platforms when Zenith Co. runs my ads?
You do, directly, on your own card. The ad accounts are in your business's name and you keep them if you stop. Zenith Co.'s fees are separate: a one-time setup fee and a flat fee per shown estimate.