Too often, law firms approach their marketing budget the wrong way: they start with a lump sum and try to fit their plans into it. But the truth is, the plan should drive the budget—not the other way around.
Many firms get overwhelmed by the possibilities, leading them to either plug random numbers into a spreadsheet or create a single catch-all budget for “marketing.” While understandable, this isn’t the most strategic approach.
Three Key Questions to Guide Your Marketing Budget
Before you start filling in your budget spreadsheet, take a step back and ask yourself:
What do we want to accomplish this year? – Defining clear goals ensures your budget supports meaningful initiatives.
What marketing will make a difference? – Focus on tactics that align with your firm’s marketing strategy and objectives.
How can we allocate the funds most effectively? – Prioritize investments that will yield the greatest impact for the firm.
Structuring Your Budget for Maximum Impact
The budget template we use with clients includes key categories such as:
- Business Development
- Communications
- Events
- Research
- Technology
- Consultants
Not every category needs to be filled—only those that align with your firm’s strategic priorities. Once you have a baseline budget, benchmark it against industry standards. Is it between 1-3% of your firm’s gross revenue (a common range for law firms)? If it’s higher, identify what’s driving the costs. Over time, tracking year-over-year spending will help refine future budgets.
Aligning Budget with Strategy
For example, if your firm has a strong content marketing program but lacks a CRM to distribute content effectively, investing in a CRM should be a priority. Or, if a past conference led to valuable relationships, allocating funds to attend again makes strategic sense. Reviewing past spending and results helps inform future decisions.
Making the Most of Your Budget Midsize firms must make strategic choices about where to invest their marketing dollars for the greatest impact. If you’d like my budgeting spreadsheet template, download it here.