Lawyers choose which marketing strategies to use based on a variety of factors, not the least of which is cost (money, time, other resources). But cost is a misleading factor.
It’s not how much we spend. It’s how much we earn in return.
We might think a certain ad campaign (or any marketing strategy) is “expensive” but if the ROI is high enough, it might actually be “cheap”.
If you spend $1,000 per month on an ad, for example, and it brings in $5,000 per month in net revenue, that ad is profitable. If you can continue to get that kind of ROI, you would want to invest as much as you can in as many ads as you can.
The same goes for seminars, mailings, video production, other content, or other marketing endeavors.
It’s also pertinent to hiring additional staff (or better staff), a bigger office, or even a better wardrobe.
Nothing is expensive if it pays for itself and helps you increase your profits.
You might be reluctant (or unable) to spend $50,000 per month on advertising, but if you’re getting a 5-1 return (and you can handle all the new business), you’d be foolish not to beg, borrow, and steal to get more money to invest in that slot machine.
There is a risk that you won’t continue to get a sufficient ROI, however, so you have to watch your numbers.
But many lawyers don’t. They allocate a monthly or quarterly budget for “advertising” or “marketing” and hope it pays off.
But that’s not how a profitable business (or practice) should be run.
