Marketing Budgets? No way!
On 28.04.10, In Legal Marketing, by Blake Houser
In a marketing plan there is little talk on exactly how to set a productive marketing budget. Let’s face it most marketing strategies or tools come with a price. How much should you spend on marketing? Before we can prudently answer that question we must first develop our strategic goals. Once the firm has set their goals in terms of revenue and clients a formula for attracting those clients can be utilized for a manageable budget.
It’s all about the R.O.I.
The bottom line is simple it is not how much you spend on marketing that counts it is your return on investment that matters. A prudent formula is to first look at what your average client is worth to your firm. Depending upon the overall profit margin a firm may want to consider a minimum of ten percent of the projected annual gross revenue from a single client.
For example, Firm A’s clients are worth $18,000.00 over a five-year period. That is $3,600 annually, would you be willing to pay $360.00 to get one new client? That should be an easy yes. Once this is done market just as fast as you want to grow your business. Fail to market — fail in business.
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