Setting a marketing budget is one of the biggest challenges law firm leaders face. Rather than spending what's left over, firms should build their budgets around business goals, revenue targets, and measurable outcomes.
In this episode of The Law Firm CMO Playbook Podcast, hosts Matt Starosciak and Carl Downey discuss practical approaches to building a law firm marketing budget. They explain why there isn't a one-size-fits-all formula, while also sharing situations where a percentage-of-revenue approach can serve as a useful starting point.
Throughout the conversation, they provide real-world budgeting examples for estate planning, criminal defense, bankruptcy, personal injury, and family law firms.
The hosts also discuss why marketing budgets should remain flexible, explaining how factors such as changes in Google search, Local Services Ads, partner departures, intake performance, and shifts in the legal landscape can all influence future marketing investments.
In this episode, Matt and Carl discuss:
- Different ways to build a law firm marketing budget
- Budget benchmarks across several practice areas
- How growth goals and revenue shape marketing investments
- Why marketing budgets should adapt to changing conditions
- Planning and evaluating marketing investments year over year
Key Takeaways:
- [0:05:42] Marketing Budgets Should Start With Business Goals – There's no universal formula for determining how much a law firm should spend on marketing. The right budget depends on where the firm is today, where it wants to go, and how quickly it wants to get there.
- [0:12:48] Different Practice Areas Require Different Investments – Marketing budgets vary significantly based on case values, competition, and client acquisition costs. A strategy that works for a criminal defense firm may not make sense for a personal injury or family law practice.
- [0:21:34] Work Backward From Revenue Targets – Rather than choosing an arbitrary budget, firms can estimate the number of cases they want, calculate expected revenue, and use those numbers to build a more strategic marketing plan.
- [0:35:03] Marketing Investment Should Reflect Growth Plans – Firms pursuing aggressive growth may need to invest a larger percentage of revenue than firms focused on maintaining their current market position. Budget decisions should align with long-term business objectives, not industry averages alone.
- [0:37:45] Budget Planning Should Be an Ongoing Process – Annual planning works best when firms review marketing performance, evaluate what worked, and use that information to make informed investment decisions for the year ahead.
“I think comparing to other firms and making assumptions about other firms is a huge mistake when it comes to budget.”
- Matt Starosciak
“You got to work within your firm and within what your firm can do.”
- Carl Downey
Connect with Carl:
Website: www.completelawmarketing.com, www.cmoforlaw.com
Email: [email protected]
YouTube: https://www.youtube.com/@LawFirmCMOPlaybookPodcast
LinkedIn: www.linkedin.com/in/carldowney/
Facebook: https://www.facebook.com/completelawmarketing
TikTok: https://www.tiktok.com/@lawfirmcmoplaybook
Instagram: https://www.instagram.com/lawfirmcmoplaybook/
Connect with Matt:
Website: www.provenlawmarketing.com, www.cmoforlaw.com
Email: [email protected]
Book: The Lawyer Marketing Book: https://www.thelawyermarketingbook.com/
YouTube: https://www.youtube.com/@LawFirmCMOPlaybookPodcast
LinkedIn: https://www.linkedin.com/in/mattstarosciak/
Twitter: https://x.com/MattStarosciak