The very first category that we cover when building an overhead budget at Profit Builder seminar is advertising and marketing.

These terms are often used interchangeably, but there is a distinct difference between advertising and marketing.

According to the American Marketing Association, “marketing is the process of identifying customer needs and determining how best to meet those needs. In contrast, advertising is the exercise of promoting a company and its products or services through paid channels. In other words, advertising is a component of marketing.”

So… what should YOU be spending in your advertising and marketing budget category?

First, let’s consider this principle:

More energy, less money

I think of marketing as energy. The more energy I spend, the better results I get.

This means, that we’d encourage you to focus on marketing strategies that cost less and can have a greater impact than advertising tactics that cost you money.

Have a look at these examples of advertising tactics and marketing strategies…


  1. Business Cards
  2. Billboards
  3. Bulk Mail
  4. Website design, update, and hosting
  5. Online Advertising


  1. Referral systems
  2. Improve your salesmanship
  3. Core Story Exercise
  4. Customer Communications
  5. Website publishing

When implementing a new paid advertising or marketing strategy, make sure that you employ two important concepts: TEST SMALL and TRACK YOUR RESULTS.

We always recommend multiple methods of advertising through multiple channels. It’s very important not to invest too much money in a strategy you have not yet proven. Test small.

You also must be able to track your advertising tactics so that you can know what IS WORKING and what isn’t. There’s no need to continue to invest in a tactic that’s not producing results. Track your results.

Now, to the bottom line… we recommend that you spend anywhere between 1-2% of your gross sales to maintain your level of sales on advertising and marketing tactics and strategies. If you want to grow your company, we typically see spending in this category in the 2-10% range during a growth period.

We see companies who spend 0% in this category, but we believe that it’s always a good idea to be advertising and marketing your company.

A lot of contractors respond with this when we ask how they get their clients: “word of mouth or referrals.”

We love referrals! But when you continue to advertise and market your company, you have the opportunity to choose to attract the types of clients that you WANT.

What are you doing in your company to attract your ideal client?

Hit reply and let me know,

Talk soon,

Tony Bass, Founder

Super Lawn Technologies


PS – join us at an upcoming Profit Builder seminar (next one scheduled for December) to learn how to budget.