Law firms typically spend a lot on marketing, as it is one of the most effective ways to attract new business. However, the amount that firms spend can vary greatly depending on their size and the type of law they practice.
For example, a small family law firm may only spend a few thousand dollars per year on marketing, while a large corporate law firm may spend millions. The most common methods of marketing for law firms include advertising in newspapers and magazines, mailing out brochures and other promotional materials, sponsoring events or donating to charity auctions, and creating a website.
It’s difficult to estimate how much law firms spend on marketing since the amount can vary widely depending on the firm’s size, location, and market niche. However, a study by the American Bar Association found that most firms (81%) spent between 1% and 5% of their revenue on marketing. That would put the average marketing budget for a law firm at around $200,000 per year.
However, it’s important to note that this figure doesn’t include spending on things like lawyer advertising or client development activities. So in reality, firms are likely to spend significantly more than this on marketing each year.
Now realistically based on Law Shop Marketing experience, we saw all types of budgets ranging from $1,000 to $10,000 per month invested in various marketing services. Some law firms are investing less and other law practices decide to invest more and of course, that depends on what areas of law they practice based on the local competition.
For example, lawyers specializing in Employment and Labour Law, Family and Divorce Law, Personal Injury Law, and Criminal Defense Law will spend more compared with areas of law that represent Corporate and Business Law, Civil Litigation Law, Wills and Estate Planning, Immigration Law, and Real Estate Law.
In general, a marketing budget for law firms is 20% to 30% of their monthly revenue. If the marketing plan generates $20,000 to $40,000 in revenue per month the expected cost might be $2,500 to $5,000 per month!