Ask ten business owners in Sherman or Denison what they spend on marketing and you’ll get ten answers — ranging from “nothing, it’s all word of mouth” to “honestly, I have no idea.” Both answers cost you money. Spend nothing and you’re invisible the moment word of mouth has a slow month. Spend without tracking and you’re probably funding things that don’t work while starving the things that do.
So let’s answer the question with actual numbers, and — more importantly — talk about where those dollars should go for a local Texoma business, because the order you spend in matters more than the amount.
The Benchmark Numbers
The standard guidance for small businesses is 5–10% of gross revenue. In practice, for local businesses, it breaks down more usefully like this:
- Maintenance mode (5–6%): You’re established, busy, and mostly want to protect what you have. A business doing $500K a year should still expect to invest around $25,000–$30,000 annually — roughly $2,100–$2,500 a month — to stay visible.
- Growth mode (8–12%): You want more customers, a second crew, a new location. Growth requires buying attention you don’t currently have, and that’s a bigger check.
- New business (12–15% of target revenue): Nobody knows you exist yet. Underspending in year one is the most common reason good businesses grow slower than mediocre competitors.
If those percentages made you wince, here’s the reframe: marketing isn’t an expense competing with rent and payroll. It’s the machine that pays for rent and payroll. The question isn’t “how little can I spend” — it’s “what does a customer cost me to acquire, and what are they worth?” If $100 of marketing reliably brings you a $1,500 job, the budget isn’t the constraint. Your capacity is.
Where the Money Should Go First
Dollar one does not go to ads. For a local business in Texoma, there’s a clear priority order, and skipping steps is how budgets get wasted.
1. Foundation: your website and Google presence
Every marketing dollar you spend anywhere eventually sends someone to Google your name. If they find an outdated website that doesn’t load right on a phone, or a half-empty Google Business Profile with a two-year-old photo, you just paid to lose a customer. Fix the destination before you pay for traffic. This is a one-time investment plus light upkeep, and it makes every future dollar work harder.
2. Owned channels: reviews, email, and social
These channels are nearly free and compound over time. A steady stream of Google reviews, a customer email list you actually use, and a social presence that shows you’re alive — together these might cost a few hundred dollars a month to run properly, and they raise the return on everything else. A Denison customer who sees your ad, then finds 80 detailed reviews and an active Facebook page, converts at a completely different rate than one who finds crickets.
3. Paid visibility: ads, once the foundation converts
Only now do ads make sense — Google Local Services Ads and search ads for high-intent searches (“emergency plumber Sherman TX”), Facebook and Instagram ads for awareness and offers. In our market, a service business can get real traction with $500–$1,500 a month in ad spend because Texoma clicks cost a fraction of what they cost in Dallas. That’s a genuine local advantage — the same budget that disappears in a big metro actually moves the needle here.
The Rule That Protects Every Dollar: Track It
Before you increase any budget, answer one question: when the phone rings, do you know why? Ask every new customer how they found you and write it down. Use a tracking number on ads if you can. After 90 days, you’ll have something most of your competitors don’t: a list of what actually generates customers, ranked. Then budgeting becomes simple — cut the bottom, feed the top. We’ve seen Texoma businesses cut their spend and grow simply because they finally stopped paying for the thing that never worked.
A Sample Budget for a $400K Texoma Service Business
Say you run a $400K-a-year service business and settle on 7% — about $2,300 a month. A sensible split looks like: roughly a third to paid ads once your foundation is solid, a third to ongoing SEO and content so you keep ranking for searches like “[your service] Sherman TX,” and the final third to the connective tissue — review generation, email, social, and tracking. The exact mix shifts by industry and season, but if your current spend looks nothing like this — say, 90% into one radio slot or a single ad platform — that concentration is worth questioning.
Get a Second Opinion on Your Budget
If you’re not sure whether your marketing budget is working as hard as it should, that’s exactly the conversation we like having. We’ll look at what you’re spending, what it’s producing, and where the gaps are — and we’ll tell you honestly if something you’re doing yourself is already working fine. Explore our marketing services for Texoma businesses, then call (469) 790-0543 or book a free consultation. No pressure, no jargon — just a clear read on where your dollars should go.