Professional services
Law Practice Marketing Budget Calculator
What a practice can afford to spend acquiring a matter, and what a budget should return.
Result
Business arithmetic for running a practice, not legal advice. Fee agreements, contingency limits, trust accounting and advertising are all governed by the rules of professional conduct where you practise, and several are strict. Check the applicable rules before any of this affects a client agreement or a marketing decision. Legal advertising is regulated by the rules of professional conduct: claims about results, testimonials, specialisation and referral arrangements are all restricted and the restrictions vary by jurisdiction. Fee sharing with non-lawyers is prohibited in most places, which rules out several common marketing arrangements.
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About this calculator
What should a practice spend on marketing?
It varies hugely with practice area and maturity. An established practice living on referrals spends very little; one building a consumer-facing practice spends far more. The cost per matter against margin is the test, not the percentage.
Are there rules on legal advertising?
Yes, and they are specific. Claims about outcomes, client testimonials, describing yourself as a specialist and paying for referrals are all regulated, with the rules differing by jurisdiction.
The formula
budget = revenue x share; cost per matter = budget / matters won; ceiling = a share of gross profit per matter
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