I am the sole owner of a debtor bankruptcy practice. I have one other attorney and three staff members. Last year we spent $50,000 of advertising. Our fees collected were $550,000 and Net Income was around $160,000. Are we spending too much?
You are spending 9% of fee revenue. I believe that in a consumer practice such as personal injury and debtor bankruptcy you have to spend around 10% of fee revenue to get the business you need to sustain the practice. I have some practices spending 19% of revenue.
So, I don't think you are necessarily spending too much if the advertising is working for you. You have to constantly measure the ROI on your advertising and fine tune it when needed.
Also, insure that the business is actually coming from the advertising – in other words don't advertise to get business you would have had anyway or in a market that you have saturated and more advertising will not yield any additional business.
Click here for our blog on marketing
Click here for articles on other topics
John W. Olmstead, MBA, Ph.D, CMC
Posted at 06:58 PM in Marketing
Tags: a, Advertising, and, Bankruptcy, Firm, How, Law, Marketing, Much, on, Should, Spend