How Much Do Law Firms Spend on Marketing

According to a 2018 study by the Legal Marketing Association, law firms allocate an average of 6.7 percent of revenue to marketing, although several experts advocate devoting anywhere from 2% to 18% of a business’s gross income to marketing.

Although 3% to 10% of revenue is common for a legal practice to invest in legal marketing, this varies significantly by area of practice. A company that requires a constant supply of new customers, such as a personal injury or workers’ compensation firm, will have to spend far more on SEO or mass media advertising than one that serves hospitals or government agencies.

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Many Law Firms Overestimate What Competitors Are Spending

In today’s marketing atmosphere, one of the most common reasons for not investing in legal marketing is that other law firms are spending very little. One study found that two-thirds of attorneys believe their competition spends a fraction of what they do on marketing and advertising.

However, many law firms inflate their competitors’ marketing budgets to justify not spending any money themselves. In fact, research shows that there isn’t a lot of disparity between what companies spend on marketing – even large-budget practices often spend less as a percentage than small or midsize legal practices.

Consider Your Firm’s Growth Stage

Are you starting a business simply to hang out a shingle? Do you have a well-known practice in your local area that wishes to grow? Are you regarded as an industry leader and wish to maintain that position?

Whether you’re just getting started in a market or have years of experience, it doesn’t matter if you’ve just graduated from law school or are already a market leader. In the mind of your target, you are unknown and unbranded.

In order to achieve any amount of brand recognition and distinction, you’ll have to invest time and money. If you want to establish a brand with a unique value proposition, you’ll probably need to allocate 8%-15% of your gross sales.

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