Read the following interesting comment earlier today in an article on National Law Review (‘How to Create a Measurable Law Firm Marketing Budget‘) about law firm marketing budgets as a percentage of overall gross revenue that made me stop and think:
If you’re intent on setting a marketing budget, know that large law firms spend anywhere from 2% to 5% of gross revenue, while small firms spend between 5% or 10% of gross revenue, according to the American Lawyer.
The figure of around 3% of gross revenue has been knocking around for most of my career, but is that really enough? Can law firms really say they are investing in business development and marketing if the amount invested is single digit figures of gross revenue?
I suspect the answer to that is “no”; and I think you would find most other businesses would laugh at this level of investment in marketing…
Shoutout to Campaign Creators on Unsplash for the photo credit