Grow My Law Firm

Your 2009 law firm marketing budget – what to keep and where to cut

Early fall is the typical time when most law firms start working on their budgets for the next year. Your firm likely does so as well. Although it’s not likely that you’re going to increase your marketing budget for next year, have you given any thought yet to whether you’re going to level-fund or reduce it?

Whatever decision you make, it’s best to start with the big number and work backwards. Following is a basic list of areas that are typically funded:

• Professional association fees & dues
• Memberships
• Sponsorships & donations
• Directories
• Sales promotional collateral
• Promotional activities
• Client & referral source entertainment
• Memorial gifts
• Client and referral gifts
• Promotional specialties (logo giveaway items)
• Advertising
• Internet

In my experience, one of the biggest chunks of firm marketing budgets is sponsorships and donations. I’m referring to such expenses as golf tees, ads in the programs for charitable events, charitable capital find contributions, and the like. These aren’t actually advertising, because they really don’t have the potential to bring in business, but they have to be done because of a relationship with a vendor or referral source who asked.

It is likely that the sponsorships and donations column of your marketing budget has become very inflated over recent years when things were better. Now may be a good time to reduce that number. Try slashing it by 1/3, and determine what really needs to be spent and what you can really let slide without a detrimental affect on your practice. It won’t be easy saying no next year to some causes that expect your continued support, but the truth is that these people are also facing cuts in their own budgets. They won’t like it, but they will understand.

Another big chunk is likely directories, which include Martindale. I recommend eliminating everything except Martindale and any top-notch practice area-specific sites that send you business. Don’t waste your time or money on any of the transient sites that pop up regularly. Read the blog post here for more information about that.

I do recommend scaling back your Martindale listing as much as possible to save money, but you really do need to be there if you value your Google ranking. Martindale has a partnership with Google that displays Martindale member listings at the top of location-specific legal searches. There is no more efficient way to stay on top of Google than by buying a Martindale listing. You just can’t compete against that partnership. You can read more about the Martindale/Google partnership here.

Your entertainment budget is also likely to be a significant chunk if your practice depends upon social networking. You can scale this back however by buying a half season of baseball tickets, inviting clients to lunches instead of dinners and resisting the urge to buy the whole bar a round of drinks.

Your advertising column should already be one of the leanest in your budget, as actual physical ads in magazines and the like are one of the least effective legal marketing tactics that you can use. If this is as lean as I expect it is, there won’t be much room to cut here.

Your internet marketing column is likely to be where you’re getting the biggest bang for your buck. This includes your website, blog, any web-based social networking associated costs and search engine keyword buys. If you’re properly utilizing these tactics, the pay-off should be so significant that you wouldn’t dream of reducing spending here. If you’re not seeing a return, we need to talk. CPilch@GrowMyLawFirm.com

Your gifts column may be reduced by scaling back the dollar amounts on each gift. It is possible to find items with high perceived value that don’t cost an arm and a leg. Your memorial contributions may also be scaled back to an amount that is acceptable coming from your firm.

Your promotional items inventory can be scaled back by choosing less expensive give-away items. I’m always amazed how many law firms spend unnecessary money on expensive and redundant items that they received as samples in the mail rather than working with a good promotional specialties representative who knows all the best sources for the items that your clients perceived to have long-term value. You can read more about this here.

And last, but not least, regarding sales promotional materials, I must ask, “Do you really need that brochure of yours?” If you’re mostly giving it to people in the office, that’s a pretty big waste of money. They’re already clients and don’t need to be sold. It’s entirely possible that you can almost eliminate this column in your budget. Copies of your published articles are much more effective in establishing your credibility, and they only cost ink or toner and good quality stock to print them in the office.

I recommend the above cost-cutting strategies even if your law firm is level-finding your 2009 marketing budget. I would then take the saved funds and reinvest them back into your internet budget in a new website or enhancements to your current one. It is likely that your website is 5 or more years old and looks dated. A fresh new look can significantly enhance a potential client’s perception, and enhancements to a user interface can make posting fresh content a breeze for someone who doesn’t want to learn complicated web design software.

I’ve hit upon the basics above, but each firm is different. Only you can make judgments about what is best for your firm. Good luck.

by: Christine Pilch

Important Martindale / LinkedIn legal marketing partnership launched

Martindale recently formed an important partnership that all lawyers should be aware of. Martindale is now closely connected to LinkedIn, which you probably know is the most significant social networking website for professionals these days.

Check it out yourself. Go to your own Martindale listing and look for the small IN logo next to your firm's name in the firm listing and next to your name in your attorney listing. When clicked, the user goes to a login page, where they can go to LinkedIn to see how they are connected to members of that firm. The caveat though is that users must give Martindale access to their LinkedIn account information.

I'm not sure that I'm happy about allowing Martindale the ability to poke around inside my LinkedIn account, but I understand the concept. They need to know who you're connected to to display how you may be connected to members of that particular firm.

I found a significant bug though. Several of my clients with LinkedIn accounts don't have LinkedIn reflected in their Martindale profiles. I asked my contact at Martindale, and he said that the product is very new and they need to work through such things. I'll be patient because I believe this is an important affiliation.

Time will tell though if the association goes both ways. Will links to Martindale profiles eventually be seen in LinkedIn bios? It would be terrific for attorneys to be linked to their AV, BV or CV rated Martindale bios from LinkedIn.  

 

By: Christine Pilch

How marketing is a lot like fishing

August is a great time to get away for awhile and go down to the “‘ole fishin’ hole.” And as we all know, fishermen can certainly come home with some very interesting stories.

Have you heard the one about the motorist who, traveling within a group of fast moving traffic on the highway, was pulled over by a police officer? When notified that he was speeding, he asked the officer, why he was singled out of at least a dozen other vehicles all traveling at the same speed. The officer asked, “Ever go fishing?” The motorist responded “Yes”. The officer then asked, “Ever catch them all?” - Doh!

That’s an eye-opening lesson for all of us who are sometimes lulled into thinking there is safety in numbers. That officer could spend his entire day using that technique and rack up quite a few in his net because he knows exactly how to catch what he’s looking for.

Recently, while relaxing on my boat I was watching bass fishermen participating in a fishing tournament. These guys are real pros. They are armed to the teeth with the latest and greatest tools of their trade – hi-tech boats, rods & reels, lures, bait, fish-finder scanners, anti-glare sunglasses, GPS maps and location markers.

While watching them and appreciating the things they were doing, it became very clear to me that these guys can teach us a lot about marketing. After all, like any marketer, before they can catch any fish - they have to first attract them.

Fishermen (and fisherwomen) realize their job is to know their customers’ every want and desire so they can offer it right back to them. With fish as their customers, they have to understand where to find them and what they like to eat. They must know where they like to hang out at different times of the day – under fallen trees in the shade, in the shallows under the lily-pads or deep, next to a steep drop off. And, they have to know their food preferences - what they like, when they like it and how they prefer to be served.

Lastly, to win, these tournament fishermen have to develop their individual techniques to a degree where they know not only where to find the fish and what attracts them, but how to catch and reel them in and how to land them in the boat better than all of their competitors that day.

Marketing is exactly that. You’ve got to understand the kind of client you want to attract and do your research to understand who they are and what they want - where they hang out - what publications or media they frequent - what you’re going to offer that will attract them, and what is the best way to reel them in while building their confidence so that they like and trust you.

Therefore, the next time you’re thinking about going fishin’ for more clients, remember this, you can’t just stick any ‘ole ad in the newspaper and expect to pull in a whopper. Otherwise, all your stories will be about the big ones that got away.

By: Dennis Kunkler

Persistence pays in legal marketing – staying the course

An advertising man named Thomas Smith wrote the following in 1885:

The first time a man looks at an advertisement, he does not see it.
The second time, he does not notice it.
The third time, he is conscious of its existence.
The fourth time, he faintly remembers having seen it before.
The fifth time, he reads it.
The sixth time, he turns up his nose at it.
The seventh time, he reads it through and says, 'Oh brother!'
The eighth time, he says, here's that confounded thing again!
The ninth time, he wonders if it amounts to anything.
The tenth time, he asks his neighbor if he has tried it.
The eleventh time, he wonders how the advertiser makes it pay.
The twelfth time, he thinks it must be a good thing.
The thirteenth time, he thinks it might be worth something.
The fourteenth time, he remembers wanting such a thing a long time.
The fifteenth time, he is tantalized because he cannot afford to buy it.
The sixteenth time, he thinks he will buy it someday.
The seventeenth time, he makes a memorandum to buy it.
The eighteenth time, he swears at his poverty.
The nineteenth time, he counts his money carefully.
The twentieth time he sees the ad, he buys what it is offered.

This begs the question, do you stick with your marketing campaign long enough for it to work, or do you abandon it if you don’t see quick results? Now I’m not talking about the most common approach; “Goodness, revenue is down, so we’ve got to run an ad. Let’s call (insert media here) and come up with something quick.” This knee-jerk reaction to a problem long in the making rarely enjoys much success.

I’m talking about a marketing plan that targets the right clients with the right message at the right time. I’m talking about a plan that grew out of solid positioning.

If you’ve done your positioning, you already know who you should be talking to, what they get from your legal services and why your firm is uniquely qualified to provide it. You know your distinction and you know the niche that you fit into in your market. You know what your desired clients need from a lawyer and what pain you can soothe. You know that people will be blind to advertising messages that talk about you, your legal service, your years in practice, your new offices and the quality of your quality work.

So if your marketing is directed at specifically targeted clients about something that they want or need, or a problem that they need resolved, does it make sense to abandon it prematurely? Is it may be more likely that they haven’t heard or read your message the 20 times that Thomas Smith said people need to take action?

We wrote a book that explains how you can position your law firm called, “The Definitive Insider’s Guide to Growing Your Practice Through Innovative Brand Strategies.” If you would like to receive a complimentary copy, please drop us an email.

by: Chrstine Pilch

Stop wasting your precious advertising dollars by not understanding the purpose of an ad or brochure

Most law firms that create or direct the creation of their ads oftentimes miss the mark. And, I’d probably miss the mark too if I believed practicing law was easy enough to represent myself in court. I’ve seen “Law & Order” on TV, and it doesn’t look difficult.

There’s more to creating an ad than trying to be clever or artsy. Your first question should be, “Why?” Why are you creating this ad? What’s its purpose? Although the answer may seem obvious, let’s look at the three main reasons for an ad.

In order to “grow” your business, you must understand what makes a business grow. Sounds simple enough, right? Just bring in more customers. Well, maybe…

Some lawyers may immediately think they need to get more customers. They need an ad, or they want to mail out a brochure, or whatever.

With that kind of Ready, Fire, Aim kind of thinking, they might possibly bring some clients in, but are they the right ones? Are they your best possible clients? Or, are they the least profitable ones? You know, the ones that are hard to please, waste a lot of your time and are slow to pay.

Business growth is all about attracting the right buyer and satisfying their expectations and/or providing even better value.

Your firm’s growth will come from either adding new clients, getting clients to come back more often, or by getting clients to increase the amount they spend on each matter.

It boils down to this; there are only 3 ways to grow a business.

1. By adding new customers
2. Increasing the frequency of purchases
3. Increasing the amount spent each purchase

When you increase any one of these areas, you will increase your business fractionally. But, if you were to add 33% new customers, that doesn’t necessarily mean a 33% growth.

However, if you were to increase each area by one-third, your firm will more than double its billings. That’s not a fractional increase, that’s exponential!

Go ahead, insert some of your own figures to this equation and add even modest increased percentages and see what this would do for your firm’s bottom line.

Remember, each line is a multiplier. 33% more customers, times 33% more purchases, times 33% more spent each time equals more than 200% growth.

When Madison Avenue copywriters put an ad together they usually are given at least one of these three objectives to meet. Otherwise, what’s the point of the ad? Why would they spend millions of dollars without a specific reason for the ad?

Unfortunately, some do just that. We’ve all seen the entertaining ads on TV and 10 seconds later we cannot identify the product or the company.

Your ads purpose should be to either get new prospects to call, get clients to come back more frequently, or to get them to spend more the next time you provide them services.

Make sure your ads, mailers or web site have a definite purpose. Pick one of the 3 ways to grow, and tie your ad around achieving at least one of those three objectives.

Otherwise, why bother spending your money?

Love them or hate them, McDonalds does a great job at this with their targeted ads, menu offerings and slogans.

Add new customers:
$1.00 menu for Seniors
Happy Meals for Kids
SuperSize for Teens
Salads for Weight Conscious Women

Increasing the frequency of purchases:
“You Deserve a Break Today”
“Expanded Breakfast Menu”
“Late-Night Hours”

Increasing the amount spent each purchase:
“Do You Want Fries With That?”
“Do You Want to SuperSize That?”

by: Dennis Kunkler

The importance of submitting well-written articles for publishing

I recently had lunch with an old friend who happens to be the editor of a business publication. He wasn’t in a very good mood because he had spent his morning editing rewriting articles that were submitted by guest authors.

He didn’t try to hide his frustration. The submitted work was full of punctuation and grammatical errors. He fixed tense and voice shifts within paragraphs and even sentences. He dealt with off-topic ramblings and poorly constructed arguments.

I asked, “Why would anybody submit something that was substandard?” He responded that it is common for him to have to do this for many people’s work. They mustn’t know that they are poor writers.

I have ghost written and edited hundreds of articles for clients, and my friend is right, much of what is submitted to me from lawyers as a final draft isn’t anywhere near acceptable. But when it goes to a publication, it is nearly perfect as a result of my polish.

Are you a strong writer? If your work appears in print radically different than you submitted it, chances are you should be working with your own editor prior to submission. Actually, you just damage your relationship with an editor if you force him to go through a time consuming process of rewriting your work. As a result, your work won’t be readily welcomed in the future because you're disrespecting the editor's time.

Being published is a very cost-effective method of niche legal marketing. It is a means of positioning yourself as an expert, and anything coming from an expert should be as flawless as possible. That means that you might have to pay somebody a few hundred dollars to edit your work, but this investment should pay off in prestige, enhanced reputation and in successfully positioning yourself as the go-to authority in your area of practice.

Christine Pilch

Beware accepting advertising on your website or blog

Many people are getting more and more strapped for cash lately, and I’ve been noticing one revenue-building tactic that I consider dangerous. Some legal blogs and websites are starting to accept Google ads as part of their design. This may bring in a little money, but at what cost to the public’s perception of your level of professionalism?

You work hard to get people to your website or blog in the first place, and they come for one reason – legal information. When did it become okay for a lawyer to promote unrelated products and services that simply distract your visitors? Why would you give anybody a reason to leave your site for another?

Perhaps more alarming is one particular estate planning site I recently happened upon that had several Google links to other estate planning sites. Again, why would you send away potential business for a fee from Google? That seems rather penny wise and pound foolish to me.

I caution you to think very carefully about the potential impact on your reputation and the potential loss of business to a competitor when you include Google ads on your site or blog.

by: Christine Pilch