I’m going to answer this question in two different ways. Please consider both responses – they are both important.
10% of Your Revenue Goal as a Benchmark
First, consider 10% of your total revenue as a benchmark for marketing spend. But, base this calculation on your 12-month revenue target, not your current revenue.
For example, if you want $100K in monthly revenue twelve months from now, I would look to spend about $10K per month on your marketing now.
Note that this figure is NOT just your “ad spend” – this is your total spend on marketing. Including ad spend, any vendors you’re paying, any marketing members on your team, freelancers, designers, etc. All of that, combined, should be in the neighborhood of 10% of your revenue goal.
That said…
Marketing Isn’t an Expense, It’s an Investment that Should Produce a Return
This means you should NOT just “write off” 10% of your revenue as a marketing expense. Every single dollar that you spend on your marketing should produce a return. If it’s not, cut it. If it is producing a return, consider increasing your spend.
One of the most valuable exercises that you, as the owner of your law firm, should regularly practice is evaluating your marketing spend against the results generated.
To do this effectively, the first thing you need to do is define the results you’re looking for with each campaign. For example, a Google Ads campaign is likely aimed at producing hot leads & clients for a specific service offering, like DUI defense or probate administration. You’re going to measure that campaign based on metrics like cost per lead, cost of acquisition, and overall quality of leads.
A newsletter campaign will have a different purpose and should be measured by different metrics. A monthly newsletter is a great tool to increase referrals and repeat-client engagements. Measure success with metrics like open rate, click-through rate, and most importantly referrals generated per month.
Bottom line: 10% of your revenue target is a reasonable benchmark for your marketing spend. But, don’t just write a blank check. Every dollar you spend on marketing should have a defined objective and you should measure your results.
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