Work out what a lead is worth to you, then budget for enough leads to win the signed jobs you want. In our example building business, a lead is worth about $400, a lead costs about $80, and 2 signed jobs a month takes about $2,000 a month in ads. To start, about $57–$114 a day for the first fortnight is enough to learn which ads bring work.
Every builder is different. The figures in this guide show the method; swap in your own signed job value, margin and close rate to get your budget. Example amounts are shown in your currency.
Step 1: what a lead is worth to you
Three numbers decide it: what a signed job is worth, the share of that you keep after costs, and how many of your leads become paying work. Multiply them and you get the most you can pay for a lead and still break even.
| Example building business | |
|---|---|
| Average signed job value | $25,000 |
| Margin you keep after costs | 20% |
| Leads that become paying signed jobs | 8% |
| A lead is worth | $400 |
Pay less than that per lead and your ads make money; pay more and they lose it, however busy the phone is. There’s more on this in what a lead is worth.
Step 2: what leads cost
In the US, the median Facebook cost per lead for home and home improvement businesses is about US$41, against about US$28 across all industries1. Leads are getting dearer too: the average cost per lead rose about 21% in a year2.
Your own cost depends on your area, your offer and your ads. This example uses $80 a lead. Once your ads have run for a few weeks, use your real figure from Ads Manager.
Step 3: budget for the signed jobs you want
Start from the work you want, not from a number that feels safe. Divide the signed jobs you want each month by your close rate to get the leads you need, then multiply by what a lead costs.
| Each month | |
|---|---|
| Paying signed jobs wanted | 2 |
| Leads needed (2 ÷ 8%) | 25 |
| Cost per lead (example) | $80 |
| Monthly ad budget | $2,000 |
| Kept from those signed jobs before ads | $10,000 |
| Left after the ads are paid for | $8,000 |
If the last line comes out small or negative with your own numbers, more ad spend won’t fix it. Lift the value of each signed job, your close rate or your margin first, or aim the ads at the signed jobs worth more.
Step 4: how much to start with
A brand-new campaign needs enough results to tell a good ad from a bad one. Meta has long described about 50 results in 7 days as the point an ad set leaves its learning phase, though some accounts have been shown lower bars3. Most small businesses can’t afford 50 leads a week, so aim for 10–20 leads across the first two weeks instead.
At $80 a lead, that’s about $57–$114 a day. Run two or three ads, judge them on the signed jobs they bring, then move budget to the winners a step at a time.
The signed jobs worth advertising
For builders, one signed job can pay for months of advertising, which makes it easy to keep running ads that don’t work. The hard part isn’t getting enquiries: it’s getting enquiries from people with a budget, a block or a house, and a timeline.
- Kitchen and bathroom renovations: the most-searched work, and the most price shopping.
- Extensions and second storeys: big, slow decisions that need trust before a call.
- Knock-down rebuilds and custom homes: long lead times, very high value.
- Decks, outdoor rooms and smaller projects: quicker wins that build reviews and referrals.
Ad ideas for builders and renovators
- A walkthrough video of a finished renovation with the budget range stated, so the wrong people self-select out.
- A “what does it cost” guide or calculator as a lead magnet for people early in the process.
- Client stories filmed on site, which build the trust a big project needs.
When to spend more, and less
Many people plan renovations after the holidays and before spring. Expect enquiries to lead signed contracts by weeks or months, and keep ads running steadily rather than switching them on and off.
Mistakes that waste budget
Paying for Pinterest-board leads
Beautiful finished-job photos attract dreamers as much as buyers. Put your price range or minimum project size in the ad and the form.
Measuring on enquiries, not signed jobs
With a close rate in single digits, an ad that brings lots of enquiries can still bring no contracts. Track which ads produced the jobs you signed.
Changing everything every day
Big edits to budgets, audiences or ads send an ad set back into learning, and results wobble while it relearns. Make fewer, bigger changes and give them a few days.
Spreading a small budget over too many ads
Ten ads on $80 a day means none of them gets enough leads to judge. Fewer ads, each with a fair share of the budget, tell you more, faster.
Agency or do it yourself?
Agencies commonly charge $500–5,000 a month, or 10–20% of ad spend, on top of the ads themselves45. On a $2,000 budget, that fee can be a big share of what you spend reaching customers. A good agency can earn it; if you mainly need someone watching the numbers and telling you what to change, you may not need one. See the signs your agency isn’t worth it.
Questions
What close rate should a builder expect from Facebook leads?
It varies widely by job size and how well you qualify leads. The example below uses 8% to show the maths; use your own rate from the last few months.
Should builders use lead forms with extra questions?
Often yes. Questions about budget, timing and whether they own the property cut the number of leads and raise their quality, which usually makes each signed job cheaper.
How much do builders pay per lead on Facebook?
The US median for home and home improvement businesses is about US$41 a lead1, but qualified renovation leads often cost more. What matters is the cost per signed job.
See what your own ads are worth
Tony checks every live ad each morning and tells you which to turn off, which to scale and why, using your numbers. The first audit is free and takes four minutes.
Sources. Dollar figures from studies are shown in your currency, converted at Reserve Bank of Australia rates for 9 October 2026 and rounded; each source has the original. Example amounts are the same number in your currency.
- WordStream (LocaliQ), Facebook Ads Benchmarks 2025: medians of 726 US lead campaigns, April 2024 – June 2025. www.wordstream.com/blog/facebook-ads-benchmarks-2025
- Search Engine Land, “Facebook ad costs jump 21% in 2025, but still beat Google”, September 2025 (WordStream LocaliQ data). searchengineland.com/facebook-ad-costs-jump-beat-google-461690
- Jon Loomer, “Is the learning phase changing?”, May 2024: Meta’s documentation reflects about 50 optimised events in 7 days to exit learning; some accounts were shown 10 in 3 days. www.jonloomer.com/qvt/is-the-learning-phase-changing/
- Margin Media, “How much does it cost to advertise on Facebook in Australia?”, October 2024: management usually A$500–5,000 a month, or 10–20% of ad spend. marginmedia.com.au/our-blog/facebook-ad-costs-australia
- Linear Design, Facebook ads management pricing guide, 2026: US$500–5,000+ a month or 10–25% of spend; many require 3–6 month minimums, some 6–12. lineardesign.com/blog/facebook-ads-management-pricing-guide/