Building Blocks Digital

When you're just starting an HVAC or plumbing business, you don't have a large customer database to rely on. You have to build one from the ground up.

The customers you bring in today may call you for maintenance next year and come back years later when it's time for a major repair or replacement. That long-term value starts with getting them through the door the first time.

That's why I usually recommend spending more on marketing in the early stages.

If you're doing around $1 million in revenue, that could mean investing up to 10% in marketing. A more conservative business might choose 5%, but I generally wouldn't recommend going below that.

As your business grows, your marketing budget as a percentage of revenue can come down. Once you're doing $3 million to $5 million or more, around 6% may make more sense because overhead is higher and margins are often tighter.

The business has changed, so the percentage should change too.

Swipe through the carousel to see how your growth stage can influence your marketing budget.

One new competitor is probably not why your Local Services Ads dropped from the top into “See more” overnight.

A sudden ranking change usually means something else changed.

There are three main places I would look:

1. The phones. Maybe a new employee came on, the business had a busier month than usual, or calls stopped getting answered as consistently. Google rewards businesses that answer quickly and keep calls from going to voicemail.

2. The location. If the business moved, your proximity to the searcher changed. You may now be serving a different part of the market, or demand may not be the same in the new area.

3. A paused account. Maybe you intentionally shut the ads off because you could not service more leads. Maybe insurance, licensing, a background check, or billing quietly paused the account.

These are the kinds of changes that can create a fast drop.

A new competitor entering the market or a slowdown in new reviews would not normally explain a sudden cliff.

Find what changed first. Then fix the problem that is actually costing you the leads.

Comment “LSA” if you want the full checklist and fix order.