The first question every contractor asks us: 'What's this going to cost me?' Fair question. Here's the honest answer, broken into the three components of paid advertising: ad spend, management, and opportunity cost.
Component 1: Ad Spend (paid directly to Meta)
Ad spend is what you pay Meta for impressions, clicks, and leads. It's your largest recurring cost. Most contractors start here:
- $1,000–$1,500/mo minimum to get meaningful data
- $2,000–$3,500/mo for steady lead flow in most markets
- $5,000+/mo when scaling beyond one metro
Ad spend is paid on your card, directly to Meta. We never touch your money. This keeps your data, your ad account, and your billing 100% under your control — no vendor lock-in.
Component 2: Management Fees
If you hire an agency, you pay management fees on top of ad spend. At Elev8, our management fees are flat (not a % of ad spend) so our incentives stay aligned with results, not bigger budgets:
Component 3: Cost Per Lead (CPL) by Trade
Based on 12 months of data from our portfolio. Your actual CPL will depend on market, season, and offer — these are realistic starting ranges:
Don't fixate on CPL. A $15 lead with an 8% close rate ($188/job) is worse than a $25 lead with a 20% close rate ($125/job). Always measure cost per booked job, not cost per lead.
Your Total Monthly Investment
For most home service businesses starting Meta ads with an agency, budget:
ROI: What You Should Actually Earn Back
A healthy Meta ad campaign for contractors generates 3–5× Return On Ad Spend (ROAS). At $3,000 total investment and 4× ROAS, that's $12,000 in booked revenue per month. At $9,000 total investment and 4× ROAS, that's $36,000/mo.
ROAS is on ad spend alone, not management fees. If you spend $3,000 on ads and earn $12,000, your ROAS is 4×. Your profit calc needs to account for management fees and cost of goods — but the agency fee often pays itself back in 1–2 booked jobs.
What If You Run Ads Yourself?
You save management fees. You also typically see 40–70% higher CPL because DIY setups miss: proper conversion API integration, creative refresh cadence, audience testing, and daily optimization. Most contractors trying DIY spend 15+ hours per month and still underperform a managed account by 2–3×.
If you're under $1,000/mo ad spend, DIY probably makes sense. Above that, the math usually favors hiring.