Some firms pick a marketing budget by what other firms “reportedly” spend. That is, by picking a percentage of gross revenues, because that is what is reported in the legal press. You may hear that firms spend anywhere from 1% to 4% of gross revenues. Some more. Whether you are at the low or higher end of those numbers is not nearly as important as how you got there.
Your firm’s budget should be based on what it is trying to accomplish in terms of its marketing goals. If you don’t plan before you decide to throw dollars at business development, you are wasting your money. As Michelle Golden at Michelle Golden at Golden Practices reminds us “Marketing budgets should be based on marketing plans.” In my view, planning is critically important for any firm before deciding how much money is available for marketing.
And I propose that the plan be focused mainly on existing clients and proven referral sources.
What do you and your law firm do when it comes to your marketing budget?