There are two ways to go about determining your marketing budget this year. The first is to look at what you spent last year and how effective your spend was. Many lawyers don’t have the metrics around what tactics they used and the ROI associated with each tactic, so they pick a % of revenue to assign to marketing.
1) Marketing budget = based on historicals and past performance of marketing tactics
– Calculate how much revenue you made last year
– Calculate how much money you spent on marketing
– Look into how much revenue can be attributed to marketing
– Put more money toward the tactics that brought in a certain threshold of revenue and eliminate the other tactics. Always identify what works and try to amplify it.
2) Marketing budget = x% of revenue
As everyone knows, in order to reap the benefits of any activity, you have to be willing to invest in it. I would start a certain threshold (say 20% of revenue) and then adjust it accordingly so that you are spending what you need in order to meet your goals.