As we’re writing this, the end of 2018 quickly approaches, so let’s use that in this example of a well-estimated marketing budget. Say you’ll end 2018 with $1 million gross revenue and you’re hoping to end 2019 with $1.5 million — so you’re looking for $500,000 revenue growth.
Let’s also assume that up until now you’ve spent zero on marketing. How much do you have to invest during 2019 so that you achieve the results you’re looking for?
The answer is 7%-10% from the amount of the targeted growth.
In the example above 7%-10% of $500 000 = $35,000 — $50,000 marketing budget for the year 2019.
We know this may sound like a lot to you, but high-performance marketing is an investment and that’s the way to think about it. If you could put $50,000 in a bank and get $500,000 at the end of the year, wouldn’t you do it?
The only thing that could stop you is not knowing whether you will really get the return on investment you’re looking for, and that’s a valid concern.
To ensure you make the best of your marketing budget, we recommend that you work with a high-performance, experienced digital marketing agency. When interviewing potential digital marketing agencies, use this list of questions.
Deciding to invest in marketing is the first step towards achieving the growth you want, but how you spend that amount of money is equally important.
There are two types of marketing you need to consider:
Your marketing budget is a percentage of your target growth, but there is an exception to that rule. If you’re looking to grow your revenue by $100,000, this doesn’t mean that you’ll achieve that goal (or even keep your firm at the top of past clients’ minds) with $7,000 yearly marketing budget.
The reason for this is that the industry is very competitive if you invest too little, your listings and your website will be invisible to prospective clients because your competitors will outspend you.
So what is the absolute minimum to spend on marketing if you want to at least keep seeing the results you’re seeing and achieve some growth? It’s not written in stone, but based on the experience, it’s no less than $2500-$3000 per month in a major metro area.
Be wary of marketing agencies who tell you they’ll only charge $500 per month. This is unrealistic and what will happen is you will give $500 per month for a year or two, seeing no results, and at the end of the second year, you will have spent $12,000 for nothing. And imagine how much you’d lose in missed opportunities while your competitors are signing all your prospects!
Great online marketing companies with specific legal expertise always seem expensive at first, but in the end, turn out to be free — because they deliver fantastic ROI.
Comrade is a Chicago-based digital marketing company that specializes in website design and marketing for attorneys. Read more about our content marketing service for law firms.
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