Marketing & Lead Gen

Where to spend your marketing budget, how much, and what to expect back — by company stage and channel.

Budget by Revenue Tier

Target 5-10% of gross revenue for marketing. The allocation shifts as you grow:

Source: SubcontractorHub

Google Local Services Ads (LSA)

LSAs appear above Google Ads and organic results on a pay-per-lead basis — charges are only for customer contacts (calls, messages, bookings), not clicks. This is the first paid marketing channel for any HVAC company after Google Business Profile.

LSA benchmarks: PushLeads 2026, 888 contractors, 126,650 leads.

The complete LSA guide covers everything from application to ongoing operations — approval process, background checks, insurance requirements, ranking factors, lead credit management, budget strategy, the 2026 Performance Max migration, and troubleshooting. Below is a summary of the key points.

At a glance

• Approval takes 3-4 weeks. Background checks for field workers are the bottleneck. Full process →
• Reviews are the #1 ranking factor. Target 4.8+ stars, 100+ total, 5-10 new reviews per month. All ranking factors →
• Response time is the #2 factor. Under 5 minutes is the target. Google uses AI to analyze every call. Call analysis details →
• Rate leads weekly. Consistent lead feedback recovers $3,000-$10,000 annually in credits. Lead management →
• Performance Max migration is active. HVAC is in the first wave (August 2026). Manual bidding is eliminated. Historical data does not transfer. Migration details →

Google Ads (PPC) — Only After LSA Maxed

• Minimum spend: $3,000-$5,000/month + $800-$1,500/month management
• Average CPL: $153 (2-3x more expensive than LSA)
• Best for: specific service targeting, commercial, areas LSA doesn't reach

Google Business Profile (Free)

• Profiles with 50+ reviews and 4.5+ ratings appear 2-3x more in local 3-pack
• Required: complete service listings, weekly Posts, real job photos
• Consistent process yields 15-30 reviews/month

Review Generation System

5-step automated workflow (LeadDuo):

1. Tech completes job → 3-minute wait → automated SMS with Google review link
2. No review at 24 hours → follow-up email
3. No review at 7 days → final SMS
4. Never send more than 3 asks
5. Respond to every review within 24 hours

Response templates

• 5-star: "Thank you so much, [Name]! We're thrilled [Tech Name] took great care of you..."
• 4-star: "Thanks for the review! If there's anything that would make it a 5-star experience..."
• Negative: "Thank you for your honest feedback. I'd like to personally make this right — could you call me at [phone]? I'm [Owner Name], the owner..."

Email Marketing

Near-zero cost, high ROI. ROI: $30,000-$80,000 annually from 1,000 active customers (BDR).

• Seasonal tune-up reminders: 6-8 weeks pre-season
• Agreement renewal: 60 days pre-expiration
• System age alerts: triggered at 10-12 years
• Post-install follow-up: 3-5 days

After-Hours Strategy

After-hours leads close at 80-90% (vs 50-65% daytime). The contractor who answers the phone at 10 PM gets the job.

• Live answering service: $200-$400/month
• After-hours dispatch fee: $89-$149
• Replacement conversion from emergency calls: 20-25% (higher than daytime)

Channel ROI Tracking

Track cost per lead AND cost per acquired job by channel. The formula:

Email marketing ROI should be measured by revenue from existing customer base, not CPL — it's a different model than paid acquisition.