What to Do with $3,000 in Marketing Ad Spend - Owned and Operated

Do you know what you would do with $3,000 in marketing money? This is what Jack would get done if it were him in this situation.
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We were sent in a question this year that I've found incredibly fascinating. "I am 18 starting my cleaning business. I have $3,000 to spend on ad spend the first month. Any suggestions to scale?" First off, good on this kid for starting early and taking ad spend seriously.

But this creates an interesting hypothetical. Where do you put that money so early in the life of your business in order to do the most good, get the most gains, and create solid leads?

Let's talk about where I would put that money if this were me starting my first cleaning business.

Marketing, Ad Spend, and LSAs

The first and most obvious answer to me: If you have your website then you have everything already set up. This is your success point. The most bang for your buck is going to come in the form of Google Local Service Ads, better known to us all as LSAs.

When potential customers search for home cleaning services in their area, LSAs appear at the top of the search results. These ads allow customers to call you directly without needing to visit a website or landing page.

To get started with LSAs, make sure you have:

  • A Google My Business (GMB) account, which is free to set up.
  • A phone number that you can answer promptly, which could even be your personal number initially.

With a high booking rate--say 50%--you could spend $100 per lead, resulting in about 30 leads from your $3000 budget. If you close half of these leads, you’ll have 15 bookings.

With an average ticket of $300 per house, you’re looking at significant returns, especially if these clients turn into recurring customers.

That's what we call a good start. This is a repeatable process also when you get that money. Or, you could also supplement that with some free hustling on your own part by getting into NextDoor and Facebook groups, looking for customers asking for referrals, and just saying "Hey, I can do that."

Save for Future Needs

Another strategy is to hold onto the $3000 for the future. As your business grows, unexpected expenses or opportunities for expansion will come up. Having a financial cushion could end up being useful. You might need this money for:

  • Purchasing new tools or equipment.
  • Hiring your first employees.
  • Investing in reliable transportation or branding your vehicle.

By saving some of your budget, you guaranteeing that you’re prepared for these moments without having to scramble for funds.

Leverage Social Media for Free Leads

I mentioned this briefly above, but in the early stages, social media can be a goldmine for free leads. Here’s how to hustle your way to success:

  • Facebook Groups: Join numerous local groups such as "Los Angeles Homeowners" or "LA Moms." Engage actively by responding to posts asking for cleaning service recommendations.

    Offer your services and promote any special deals directly in these groups.
  • NextDoor: This neighborhood-focused platform is excellent for connecting with locals looking for services. Regularly check for posts asking for cleaning service recommendations and be prompt in offering your services.
  • Yelp and Other Review Sites: Encourage satisfied customers to leave positive reviews. High ratings can drive new business without additional ad spend.
  • HOAs and PTA Meetings: Engage with homeowners' associations and parent-teacher associations. These community groups can provide a steady stream of referrals.

Build a Strong Online Presence

While LSAs can bring immediate leads, building a robust online presence is crucial for long-term success. Here’s what to focus on:

  • Google My Business (GMB): Optimize your GMB profile with accurate information, photos, and regular updates. Ask satisfied customers to leave reviews to boost your visibility.
  • Website and SEO: Make sure your website is professional, mobile-friendly, and optimized for search engines. Even if you’re focusing on LSAs initially, a good website builds credibility and helps convert leads. Leads are good.
  • Social Media Profiles: Maintain active profiles on platforms like Facebook and Instagram. Share cleaning tips, customer testimonials, and before-and-after photos to engage with potential clients.

Utilize Word-of-Mouth Marketing

Word-of-mouth remains one of the most effective marketing strategies. Satisfied customers can become your best marketers. Implement referral programs where existing clients get discounts for referring new customers.

This strategy not only saves money but also leverages the trust and satisfaction of your current client base.

Make the Most of It

With a $3000 marketing budget, the best initial strategy might be to save the funds for future expenses and leverage free or low-cost marketing channels. Start with Local Service Ads for direct leads, but don’t overlook the power of social media hustling and word-of-mouth marketing.

Building a strong online presence and engaging with local communities can set a solid foundation for your cleaning business to thrive. But, just remember: You're young, you're making moves, and you'll make mistakes.

We all do. But if you learn from them then you'll know what to do next time.

Jack Carr, CEO of Rapid HVAC
https://rapidhvactn.com

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