In our last post, we discussed how much money you should spend on marketing. We advocated that you should allocate 10% of your revenue toward marketing. Now, imagine the person who’s law firm makes $2,000,000 a year in revenue. Are we arguing they should prioritize using $200,000 of that on marketing?
Yes, we are.
We spend 20% of our revenue on marketing to show you how serious we are. There’s no secrets here. We wouldn’t be telling you to do this if we didn’t believe in it. To be fair, we’re spending twice the amount of money we’re telling you to.
When people think about devoting $200,000 to marketing, their first reaction is usually about how much money that is to lose. Without a doubt, that is a large amount of money, and this next point will sound somewhat contradictory: It’s ok if you “waste” it. (I am using the term “waste” in the way the average person would when they spend that amount of money on marketing and don’t see the return they’d hoped for. What I am going to argue is that it is not truly a waste of money.)
Define “Waste”
Your marketing plan doesn’t work; you spend the money, and it fails. Then what exactly is the benefit? In marketing, you often have to fail before you succeed. That’s why it is not a waste in how people assume it to be. There are very few marketing initiatives that work on version one. (This is also why we chose to describe your plan as Version One; we expect it to evolve into better versions of itself.) Very few marketing ideas work from the initial concept.
For every firm that has wasted money on something, other firms have gotten clients from the places where you have not succeeded. If you allocate money to something that doesn’t work, should you stop and reallocate elsewhere or modify what you’re doing? The crazy part is that there is no right or wrong answer when considering the opportunity cost.
If you try something and it fails, modify it. Maybe it failed for reasons that can be changed, but there may be something else that you want to try instead. For those who would instead move their money there, that’s fine, too. The thing that is more important than success is your willingness to try.
Spotlight Branding
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