Average Internet Marketing Budget for Law Firm

Marketing, Legal
23 min read
As a digital marketing company for law firms, we’ve worked with small, medium and big budgets and can tell you from experience that there is a marketing budget that’s just right for accomplishing your objectives, and it’s important that you know it. Spend too little and you won’t get the results you want. Spend too much and you won’t be able to handle the caseload, which will result in overworked employees, poor performance, and bad reviews. So, what is the right budget for you? It depends on your goals and is actually a percentage of your target gross revenue. That’s why you always start planning with your goals.

Goals

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 high-performance, experienced digital marketing agency. When interviewing potential digital marketing agencies, use this list of questions.

How to allocate your marketing budget

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:

1. Retention marketing. This is about reminding your former clients about your existence. It’s important to do that, because at some point they may need your services again or they may want to recommend you. This is why you invest a small portion of your marketing budget in staying on top of their mind, which means they’ll easily remember yours and your firm’s name when they need to.

How much exactly to allocate to retention marketing? There is no one formula, but, the rule of thumb is that it costs 7 times more to get a new client than to retain an existing one. So, for every $7 you spend on acquiring new clients, spend $1 on retention.

2. Acquisition marketing. Budget for acquiring new clients will be distributed among SEO, PPC, content marketing, online directories, reputation management, and high-performance website design for attorneys and other digital tools.

How to allocate your marketing budget

Minimum marketing budget for lawyers

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!

Minimum marketing budget for lawyers

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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Written by:
Sasha Berson

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