Tag: marketing budget

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3 stats that should scare the Hell out of law firm BD teams

Citing various industry reports, including both the American Bar Association’s 2022 Tech Report and Clio’s Legal Trends Report, Annette Choti has come up with a list of ‘Five unbelievable law firm marketing statistics that may completely change the way you see legal marketing and how you reach prospective clients‘ over at Attorney at Work.

Annette’s article is a really good read, but 3 of the 5 stats she calls out in her article should have all law firm BD professionals saying: “What the…” and these are:

  • 43% of Law Firms Do Not Have an Annual Marketing Budget
  • 68% of Clients First Contact a Lawyer or Law Firm via Phone
  • Only 53% of Lawyers Say They Are Confident in Running the Business Side of Their Firm

While 1 and 3 above have me scratching my head, 2 made me laugh – invest as much as you want in law firm technology and sales/BD methodology; but make damn sure your reception desk knows who does what!!

If this all sounds too close to home to be true, feel free to drop me a line to talk through how we can fix this up.

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How much does your law firm spend on Marketing and Business Development?

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…

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Shoutout to Campaign Creators on Unsplash for the photo credit