Marketing, when done right, is an investment. It fuels growth, attracts better clients, and increases your firm’s profitability. But when done poorly, it’s just an expense, and a costly one.
There’s no magic number for your law firm marketing budget. It depends on your goals, audience, and growth stage. So, how much should you spend? And how do you decide what to spend on?
This blog covers it all. You’ll learn how to decide your marketing spend, create a budget, and get the most out of every dollar.
How Much Should Lawyers Spend on Marketing?
Law firm marketing budgets vary. Newer firms often invest more upfront to establish their presence, while established firms keep their budgets more consistent.
A reasonable budget allocates 5 to 15% of gross revenue on marketing. Where you fall in that range depends on:
- Your firm’s size
- Your level of competition
- Your growth goals
Startups and small firms might lean closer to 15%. Larger, stable firms may stick to the lower end.
Creating Your Law Firm Marketing Budget
Creating a strong marketing budget is about planning based on data and goals. Here’s a step-by-step approach:
- Know Your Business Goals
Be clear about your business goals. Be as specific as possible.
An example of a clear business goal is: “Increase criminal defense clients by 15% in the next 6 months.”
Your goals should match your firm’s stage of growth and market position.
- Look at Past Marketing Spend
Observe what you’ve already done. Where did the money go? What worked? What didn’t?
Review the following:
- ROI from each channel (Google Ads, SEO, social, etc.)
- Cost per client acquisition
- High-performing campaigns
- Seasonal marketing trends
- Competitor benchmarks
This analysis helps you stop wasting money on underperforming efforts.
- Determine Your Audience and Allocate Accordingly
Different practice areas need different strategies.
Personal injury firms may benefit from TV, radio, and billboards. In comparison, corporate firms may prioritize thought leadership and LinkedIn ads.
Your potential clients will check out multiple firms before calling you. So, your budget needs to cover both awareness and direct response marketing.
- Study Your Competitors
Want a realistic starting point? Research what your competitors spend.
Look at their website traffic, social media presence, and paid advertising efforts.
The idea isn’t to copy them. It is to stand out. Find gaps they’re missing and assess how you can fill them.
- Allocate Budget by Growth Stage
Your growth phase should determine your law firm marketing budget:
- Beginner firms: $10,000–$100,000 annually. Focus on building your brand and generating leads with paid ads and SEO.
- Mid firms: $150,000–$1,000,000. Use a mix of traditional and digital strategies.
- Big firms: $1,000,000+. Focus on dominating your market and protecting your share with high-visibility campaigns.
Law Firm Advertising Budget
Marketing and advertising aren’t the same. Marketing is the strategy. Advertising is one part of it: the paid promotion side.
Your law firm advertising budget may include:
- Google Ads: Targeting your practice areas.
- Social media ads: Building awareness and engagement.
- Traditional media: TV, radio, or print campaigns.
Using a Law Firm Marketing Budget Template
A good law firm marketing budget template helps you organize spending, track ROI, and forecast results. It should include:
- Ad spend (Google Ads, social media).
- SEO and content marketing.
- Event sponsorships or networking costs.
- Website and branding cost.
Note: Your budget should be flexible. Markets change, algorithms change, and so should your spending.
How MyLegalSoftware Helps You Track ROI
There is no effective budget without tracking.
MyLegalSoftware (MYLS) helps law firms track marketing performance in real-time. You’ll be able to tell:
- which channels bring in high-quality leads
- how much each lead costs
- which campaigns increase revenue
MYLS helps you spend wisely on your Law firm marketing.
Ready to Work on Your Marketing Budget?
Start a free trial or schedule a demo with MyLegalSoftware today. Our tool makes monitoring your firm’s marketing efforts as easy as ABC.
Frequently Asked Questions
- What’s the best law firm marketing budget?
There is no “best.” A good law firm marketing budget is between 5 and 15% of gross revenue. Smaller or newer firms spend closer to 15% to build awareness, while established firms spend on the lower end to maintain their market presence.
- How much should my small law firm spend on marketing?
A small or new law firm may start with 10 to 15% of gross revenue. This helps establish the brand, attract clients, and compete with larger firms. You can adjust this percentage based on ROI and business goals as the firm grows.
- What should be in a marketing budget for law firms?
A complete marketing budget for law firms should include:
- Google Ads and social media advertising.
- SEO and content marketing.
- Branding and website updates.
- Event sponsorships and networking costs.
- Email and client communication tools.
- How much should I spend on Google Ads?
There’s no fixed rule, but many firms dedicate 20 to 40% of their advertising budget to Google Ads. It depends on your practice area, competition, and desired lead volume.
- Is advertising the same as marketing?
No. Marketing is the overall strategy, while advertising is one piece of it. Marketing covers everything from branding to client communication. Advertising focuses only on paid channels like Google Ads, social media ads, and traditional media.
- How do I know if my law firm’s marketing budget is working?
Track your ROI (return on investment). If your campaigns are bringing in clients and covering their costs, your budget is working.
- Can I use a law firm marketing budget template?
Yes. A template helps you organize spending, forecast results, and avoid overspending.
