Lawyer Monthly - August 2021 Edition

60 WWW.LAWYER-MONTHLY.COM | AUG 2021 So HowMuch Should I Spend on Legal Marketing? Why You Need a Bespoke Law Budget In short, there is no one figure that you should spend. According to recent American Bar Association reports, fewer than half (46%) of law firms have a marketing budget, and only 14% of solo law practices have a defined budget. It seems that relying on word of mouth and referrals is still the preferred method of attracting new clients. However, doing this could mean that your law firm is missing out on a lot of potential clients and revenue. Most law firms that do have marketing budgets spend between 2 and 15% of their revenue on their marketing output, with the majority of outlays skewing more towards the lower end of those figures. But if you are a smaller firm spending at that lower end, the odds are that your marketing might not deliver the results you desire. Effective legal marketing budgets should be based on your individual law firms and a variety of factors. It is also vital to remember that a smaller marketing budget well spent is better than a bigger marketing budget used poorly. Simply put, there is no one rule for what your law budget should be and there is no one figure. The truth is that each law firm should have its own budget based on its goals at that particular time; so while the top 200 law firms in the US and UK spend between 2.67% and 4% on their marketing budget, that does not necessarily mean that you should follow suit. The example above highlights what Kirkland & Ellis are spending as a percentage of their revenue, but it is important to remember that your law firm might not be competing with Kirkland & Ellis. Your law firm might serve a different location, a different customer and be at a different stage of your business life than Kirkland & Ellis and these factors will determine what your budget should be, not what the other law firms are doing. Law firm that have a marketing budget Solo practices that have a defined budget 46% 14% Deciding your budget should be the first thing you do before you make any other decisions on your legal marketing strategy. Without knowing your budget, you will not be able to measure your success, which could lead to a marketing strategy that is operating blindly and does not deliver. Measurement is the key to a successful marketing strategy and the budget is the start point for that process. This guide will go through the best steps to create your law firm’s marketing budget to maximise your return on investment and win you the most new leads.