We base our recommended ad budget on a formula, taking into account the number of calls you are looking to generate per day and the average cost per conversion in your industry (based on our experience working
with others in your industry). The formula we use is the following:
Desired # of calls/day x average cost/conversion x days in a month = suggested ad budget/mo
To get an idea on the average cost per conversion for your industry, here is a list of industries and average ranges of conversion costs for each based on our experience:
Home Services: $60
Insurance: $75
Legal: $100
Professional Services: $70
B2B (Business to Business): $85
So to take this one step further, as an example. You are a local landscaper looking to generate 5 or so calls per day. Taking into account the average cost/conversion listed above and applying the above formula we would find a suggested monthly ad budget of $6000-$7500.
5 calls/day x $40-$50/conversion x 30 days = $6000 - $7500 per month