← The Law Firm Marketing Minute
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How much should you spend on marketing to grow your law firm? This is a very important question. I'm going to give you a two part answer and I need you to stick with me because both parts of this are really important. General rule of thumb, around 10% of your total revenue makes sense as a marketing budget. If you are looking to grow your firm, right? And so what that means is let's say you are aiming for the $1 million annual revenue mark. Your marketing budget should probably be about 10% of that $100,000. Now understand that's not, that's. I'm not telling you to spend 10% on just your advertising spend or even all 10% of that to a marketing vendor. That needs to include all of your marketing expenses. So if you have a marketing assistant, that includes their salary. If you are spending your time in marketing, a portion of your salary needs to fit into that bucket. Especially it should also include your advertising spend, it should also include your BNI costs, your networking costs, and it should include whatever you're paying vendors. So 10% is considered a rule of thumb for a business that wants to grow. There are firms that spend more, there are firms that spend less. It depends on your growth goals. By the way, that 10% should be on your goal revenue, not where you are today. So if you're a $500,000 law firm today, but 12 months from now, you want to be a $1 million law firm, you, your 10% should be based off your 12 month from now goal. If you wanna be a million dollar law firm, you need to market like a million dollar law firm. So that's part one. 10% sort of considered a good rule of thumb. But marketing is an investment, it's not an expense. You expect to see a return on your marketing investment. So do not just earmark that 10% as an expense and just chalk it all up to your marketing spend. If you are spending money on marketing, you, you should be tracking the return on that investment and you should be looking for a return. And if you are not getting a return, then you should stop doing it and switch to something else. So this is gonna get too long to cover all of this in this video. But one of the really important things you need to do for every single dollar you're spending on marketing is get clear on what's the purpose of that dollar. For example, if you're running a newsletter campaign, the purpose is probably to stay top of mind with your clients, your referral sources, so you generate more referrals and more repeat client engagements. If you're spending money on Google Ads, your goal is probably to generate phone calls. So getting really clear on not just what you're doing, but why you're doing it is really important. Within that 10% or whatever you allocate to your marketing spend, you need to be sure that everything that you're spending is purposeful, that you understand, you know, what's your goal, what's your objective, how are you tracking sales success or failure? So, bottom line, 10% considered a good threshold, but definitely you got to be really attentive to what that spend looks like. And if you're spending money and it's working, then then by all means, increase. And if you're spending money and it's not working, then probably you need to shift up your strategy. So we'd love to have a conversation with you about this. Feel free to reach out, and I hope this helps.