How Much Should Sewer & Drain Companies Spend on Marketing?

Start With Your Growth Goal

Before deciding how much to spend, determine what you are trying to accomplish.

For example:

Maintain Current Revenue

You may primarily need enough marketing to replace normal customer churn and maintain your existing lead flow.

Grow 10–20%

Your marketing may need to generate additional opportunities without overwhelming your current operations.

Enter a New Service Area

You may need additional investment in:

• Local SEO
• Google Ads
• Location pages
• Google Business Profile
• Brand awareness

Grow a High-Value Service

You may want more:

• Sewer replacements
• Pipe lining
• Pipe bursting
• Hydro jetting
• Commercial work

That may require shifting marketing budget away from low-value services rather than simply spending more.

Your growth goal should come first.

The budget follows.

Marketing Budget Should Follow Business Economics

Marketing is an investment in customer acquisition.

The basic economics look like this:

1. Marketing Spend
2. Leads
3. Booked Jobs
4. Revenue
5. Gross Profit

If you do not understand these numbers, choosing a marketing budget becomes guesswork.

Know Your Average Job Value

Start with the average revenue generated by different services.

For illustration only:

These are examples, not industry benchmarks.

Your actual numbers should come from your own business.

The important point is that each service can support a very different customer acquisition cost.

A $300 Job and a $15,000 Job Should Not Have the Same Lead Economics

Imagine two services.

Service A

Average job value: $400

Service B

Average job value: $12,000

A $300 customer acquisition cost could be completely unsustainable for Service A and highly profitable for Service B.

This is why looking only at cost per lead can be misleading.

You need to understand what those leads eventually become.

Calculate Your Cost Per Lead

The basic formula is:

Cost Per Lead = Marketing Spend ÷ Number of Leads

For example:

Monthly marketing spend:

$6,000

Monthly leads:

60

Cost per lead:

$100

That number is useful, but it is only the beginning.

Calculate Your Lead-to-Customer Conversion Rate

Next, determine how many leads become paying customers.

Formula:

Lead-to-Customer Rate = Customers ÷ Leads × 100

Example:

60 leads

18 customers

Lead-to-customer rate:

30%

Now you can calculate your customer acquisition cost.

Calculate Customer Acquisition Cost

Formula:

Customer Acquisition Cost = Marketing Spend ÷ New Customers

Using the example above:

$6,000 monthly spend

18 new customers

Customer acquisition cost:

$333

This is much more meaningful than cost per lead alone.

Compare Acquisition Cost to Job Value

Suppose your $333 customer acquisition cost produces an average booked job worth $2,500.

That may look attractive.

But you still need to account for:

• Labor
• Equipment
• Materials
• Financing costs
• Sales costs
• Overhead
• Warranty obligations
• Marketing management

Revenue is not profit.

That is why gross margin matters.

Gross Margin Changes What You Can Afford to Spend

Imagine two businesses generate the same $5,000 job.

Company A

Gross margin: 60%

Gross profit before marketing and overhead:

$3,000

Company B

Gross margin: 30%

Gross profit before marketing and overhead:

$1,500

These companies cannot necessarily afford the same customer acquisition cost.

Marketing decisions need to reflect actual margins.

Calculate Marketing ROAS

ROAS means Return on Ad Spend or, more broadly, Return on Marketing Spend when used internally.

Formula:

Revenue Attributed to Marketing ÷ Marketing Spend

Example:

Marketing spend:

$10,000

Attributed revenue:

$50,000

ROAS:

5x

For every $1 invested, the company generated $5 in attributed revenue.

But remember:

ROAS measures revenue, not profit.

Calculate Marketing ROI

A simplified marketing ROI formula can be:

(Gross Profit From Marketing - Marketing Cost) ÷ Marketing Cost × 100

Suppose:

Attributed revenue = $50,000

Gross margin = 50%

Estimated gross profit = $25,000

Marketing cost = $10,000

Estimated marketing ROI:

($25,000 - $10,000) ÷ $10,000 × 100 = 150%

This provides more context than ROAS alone.

Work Backward From Revenue Goals

Instead of choosing an arbitrary budget, work backward.

Suppose you want to generate:

$100,000 in additional monthly revenue

Average new job:

$5,000

You need approximately:

20 additional customers

If your lead-to-customer conversion rate is:

25%

you need approximately:

80 qualified leads

If your average cost per lead is:

$150

estimated marketing spend would be:

80 × $150 = $12,000

This is still a simplified model, but it gives you a much stronger starting point than choosing a random marketing percentage.

Budget by Service, Not Just by Company

One of the best ways sewer and drain companies can improve marketing performance is to think by service line.

Instead of saying:

We spend $15,000 per month on marketing.

break it down into:

• Drain cleaning
• Hydro jetting
• Sewer repair
• Sewer replacement
• Pipe lining
• Pipe bursting
• Commercial work

Then ask:

• Which produces the most leads?
• Which has the highest close rate?
• Which has the best margins?
• Which customers are most valuable?
• Which services do we have capacity to perform?

Marketing budget should support the jobs you actually want more of.

High-Value Sewer Services Can Support Different Marketing Economics

A trenchless contractor may be willing to invest significantly more to acquire a pipe lining lead than a company would spend acquiring a basic drain-cleaning lead.

Why?

Because one qualified lead could become a high-value project.

But that does not mean you should accept unlimited lead costs.

Track:

• Cost per lead
• Inspection rate
• Estimate rate
• Close rate
• Average project value
• Gross profit

These numbers tell you what a lead is actually worth.

Know Your Maximum Affordable Cost Per Lead

You can work backward from customer value.

Suppose:

Average sewer replacement:

$10,000

Gross margin:

50%

Gross profit:

$5,000

Desired maximum marketing cost:

20% of gross profit

Maximum acquisition cost:

$1,000

If you close 20% of qualified leads:

$1,000 × 20% = $200

A rough maximum lead cost may therefore be around $200.

Again, this is a simplified example.

The correct number should reflect your real margins, operational costs, sales performance, and desired profitability.

Your Close Rate Has a Huge Impact on Marketing Budget

Consider two companies buying leads at $150 each.

Both receive 100 leads.

Marketing spend:

$15,000

Company A

Close rate: 10%

Customers: 10

Customer acquisition cost:

$1,500

Company B

Close rate: 30%

Customers: 30

Customer acquisition cost:

$500

Same marketing.

Same cost per lead.

Very different economics.

Improving your sales process can sometimes produce more growth than increasing the marketing budget.

Lead Response Time Affects Marketing ROI

A company may spend heavily on:

• SEO
• Google Ads
• Google Maps

and still lose leads because nobody responds quickly.

Common issues include:

• Missed calls
• Forms sitting unanswered
• Estimates never followed up
• No after-hours process
• Leads not assigned
• No CRM

Before increasing your budget, make sure you can handle the opportunities you already generate.

Capacity Should Influence Your Marketing Budget

More leads are not automatically better.

If your technicians are booked for three weeks, aggressively increasing drain-cleaning advertising may create:

• Longer wait times
• Poor customer experience
• Wasted leads
• Lower close rates
• Bad reviews

Marketing should align with operational capacity.

You may instead shift spend toward:

• Higher-value services
• Future bookings
• Specific geographic areas
• Commercial projects
• Services with available capacity

How Much Should You Spend on SEO?

SEO budgets depend heavily on:

• Competition
• Website size
• Number of services
• Number of service areas
• Current authority
• Content requirements
• Backlink requirements
• Technical problems

A contractor competing in one smaller market usually requires a different level of investment from a multi-location trenchless company targeting several competitive metro areas.

At No Dig, our current ongoing marketing packages start at:

• Starter — $1,497
• Growth — $2,497
• Authority — $3,997

The appropriate level depends on the business rather than simply choosing the lowest or highest package.

How Much Should You Spend on Google Ads?

Google Ads budgets should be based on the number of qualified opportunities you want to generate and what those opportunities are worth.

Consider:

• Search volume
• Average CPC
• Conversion rate
• Cost per lead
• Close rate
• Job value
• Margin
• Geographic reach

If the average click costs $20 and your landing page converts 10% of traffic:

10 clicks × $20 = $200

One lead = approximately $200

If 25% of those leads become customers:

4 leads × $200 = $800 customer acquisition cost

The next question becomes:

Is a new customer worth more than $800 to the business?

Marketing Management and Ad Spend Are Different

Do not confuse:

Agency / management fee

with:

Advertising spend

For example:

You may invest:

• $2,500 in marketing management
• $5,000 directly into Google Ads

Total monthly marketing investment:

$7,500

Both costs should be included when evaluating overall marketing ROI.

SEO and Ads Should Not Automatically Receive Equal Budgets

Your budget should reflect opportunity.

For example:

A company with:

• Strong organic rankings
• Weak paid search
• Available technician capacity

may choose to allocate more toward ads.

Another company with:

• Expensive ad costs
• Weak organic visibility
• Strong long-term growth goals

may invest more heavily in SEO.

Avoid arbitrary 50/50 allocations.

What About Google Business Profile?

Google Business Profile itself does not require paying Google to maintain an eligible listing.

But improving local visibility may involve investment in:

• Optimization
• Reviews
• Photos
• Posts
• Local SEO
• Citations
• Website improvements
• Local authority
• Tracking

For many sewer and drain businesses, Google Maps should be treated as an important part of the overall marketing budget.

Budget for Website Improvements

A weak website can limit every acquisition channel.

Before increasing traffic, ask:

• Is the website fast?
• Does it work well on mobile?
• Are service pages strong?
• Are CTAs clear?
• Are reviews visible?
• Are forms easy to complete?
• Are calls tracked?

No Dig website projects currently start at $5,000, depending on site size and scope.

A website should be evaluated as a business asset rather than simply an expense.

Budget for Review Generation and Reputation

Reputation should also be part of the marketing system.

Investments may include:

• CRM
• Review request automation
• Staff processes
• Monitoring
• Reputation management

Strong reviews can improve the conversion rate of:

• SEO
• Google Maps
• Google Ads
• Referrals

That means reputation can increase the return from other marketing channels.

Budget for Lead Follow-Up

If you are spending thousands of dollars to generate leads, it makes little sense to ignore what happens after the inquiry.

Lead-management investment may include:

• CRM
• GoHighLevel
• SMS automation
• Email follow-up
• Appointment reminders
• Estimate follow-up
• Call tracking
• Lead source tracking

The objective is to convert more of the opportunities you are already paying to generate.

Do Not Increase Spend Before Fixing Major Lead Leaks

Before doubling your marketing budget, check for problems such as:

• Calls going unanswered
• No call tracking
• Slow form response
• Weak landing pages
• Broken forms
• Poor mobile experience
• No estimate follow-up
• Bad reviews
• No CRM
• Wrong geographic targeting

Otherwise, increasing spend may simply make the existing problems more expensive.

How Marketing Spend Changes by Growth Stage

New Company

Priority may include:

• Website
• Google Business Profile
• Initial reviews
• Google Ads
• Basic SEO
• Tracking

The objective is building the foundation while creating initial demand.

Growing Company

Priority may shift toward:

• Additional service pages
• Local SEO
• More content
• Google Ads expansion
• Reputation
• CRM
• Better attribution

The goal is to make acquisition more predictable.

Established Company

More advanced priorities may include:

• Multiple locations
• Competitive SEO
• High-value service campaigns
• Advanced link building
• AI search visibility
• Commercial lead generation
• Sales automation
• Detailed revenue attribution

The company may spend considerably more because its ability to monetize leads is greater.

How Geography Affects Marketing Cost

A sewer company serving a smaller local market is not competing in the same environment as one targeting:

• New York City
• Houston
• Los Angeles
• Miami
• Chicago

Larger markets can mean:

• More search demand
• More competitors
• Higher CPCs
• Stronger websites
• More aggressive SEO
• Higher customer acquisition costs

Marketing budgets need to reflect the actual competitive landscape.

Multi-Location Companies Need Different Budgets

Adding another legitimate location can require additional investment in:

• Location page
• Google Business Profile
• Reviews
• Citations
• Local SEO
• Content
• Google Ads
• Tracking
• Lead routing

A three-location company should not expect exactly the same marketing requirements as a one-location business.

Marketing Budget Should Follow Capacity

Before increasing spend, ask:

Can we answer more calls?

Can we schedule more jobs?

Do we have enough technicians?

Can we quote projects quickly?

Can we follow up with estimates?

Can we service additional areas profitably?

Marketing growth without operational capacity can create new problems instead of solving them.

Track Marketing by Source

At minimum, understand leads from:

• Organic search
• Google Business Profile
• Google Ads
• Direct
• Referrals
• Other campaigns

If everything is recorded simply as:

Internet Lead

you cannot make informed budget decisions.

Track Marketing by Service

A lead for:

Drain Cleaning

is not economically identical to:

Pipe Lining

Your reporting should tell you what kinds of leads each channel is producing.

This makes budget allocation much smarter.

Track Marketing by Location

For companies serving multiple markets, also ask:

• Which cities produce leads?
• Which locations close best?
• Where is ad spend inefficient?
• Where does SEO perform best?
• Which markets produce higher-value work?

You may discover that some locations deserve significantly more investment than others.

Marketing Metrics Worth Tracking

A useful dashboard may include:

• Marketing spend
• Leads
• Qualified leads
• Cost per lead
• Customers
• Close rate
• Customer acquisition cost
• Average job value
• Attributed revenue
• Gross margin
• ROAS
• Marketing ROI

These metrics create a much better foundation for budget decisions.

What Not to Do

Choose a Budget Because a Competitor Spends It

You do not know their margins, close rate, or profitability.

Use Revenue Percentage Alone

Percentage can provide context, but it should not replace unit economics.

Increase Spend Without Tracking

More spending without attribution creates more uncertainty.

Focus Only on Lead Volume

Lead quality matters.

Ignore Gross Margin

Revenue is not profit.

Ignore Operational Capacity

More demand is useless if you cannot serve it.

A Better Way to Set Your Budget

Use this process:

Step 1: Define Revenue Goal

How much additional revenue do you want?

Step 2: Determine Average Job Value

How much is the average new customer worth?

Step 3: Estimate Customers Needed

Revenue target ÷ average job value.

Step 4: Use Your Close Rate

Determine how many leads are required to produce those customers.

Step 5: Estimate Cost Per Lead

Use your historical SEO and ad data when available.

Step 6: Calculate Required Marketing Investment

Leads required × expected cost per lead.

Step 7: Check Profitability

Compare acquisition cost with gross profit.

Step 8: Check Capacity

Make sure your business can actually handle the additional work.

Example Marketing Budget Calculation

Suppose a sewer company wants an additional:

$80,000 per month in revenue

Average job value:

$4,000

Customers required:

20

Lead close rate:

25%

Qualified leads required:

80

Average cost per qualified lead:

$125

Estimated acquisition budget:

$10,000

If marketing management adds another $3,000:

Total marketing investment:

$13,000

If the company achieves the $80,000 target:

Revenue-to-marketing ratio:

Approximately 6.15x

Whether that is profitable depends on the company's actual margin and operating costs.

Use Your Own Numbers

The examples in this guide are intentionally simple.

Your actual budget should use your own:

• Prices
• Margins
• Lead data
• Close rates
• Market costs
• Customer value
• Capacity

That is what turns marketing budgeting from guessing into financial planning.