Lawyer Monthly - August 2021 Edition

63 AUG 2021 | WWW.LAWYER-MONTHLY.COM Another important element to consider is the current position of your law firm. We have touched upon the top law firms and the amount they spend, and one of the factors driving those proportionally low expenditures being the sheer size of their balance sheet, which allows them to spend vast amounts on marketing. However, another facet of those law firms that spend a low percentage of their revenue is that they have something in common: they are well established, large law firms. Those types of firms have gained such a reputation that clients will actively seek them out, not the other way around. Your law firm may not have that advantage – yet. A good way to think of this is that, if you are an established company, you can probably afford to spend a little less than a brand new law firm. As a general rule across business (if we ignore the legal marketing averages, which we know are quite low), it is commonly accepted that established companies will spend between 6-12% of their gross revenue, and new businesses will spend significantly more (between 12-20% ) to allow them to gain a foothold in the market and become an established brand. Although this might seem like a lot to spend in comparison, if you are new to proceedings then it is a solid strategy to follow this rough outline. Remember that the number is a only a guide. An essential tip would be to consider your company standing from a customer perspective and not your own. If you have already got a good marketing presence (such as a good website, a content strategy, Search Engine Optimisation, social media etc.), then you could class yourself more in the ‘established’ category even if you are a law firm that has only been open for a few years. But if you have none of those things and your marketing amounts to very little, even if your law firm was founded in 1862 you must class yourself as one of the new guys in the marketing world, because while others in the legal profession may know your name, it is highly likely that – without any previous marketing – your target audience will not. Company Standing 6-12% on marketing of gross revenue Established Companies New Companies 12-20% on marketing of gross revenue Figure 3 SUGGESTED MARKETING PERCENTAGE