When growing your law firm or practice, you should always consider Return on Investment (ROI) before committing to any marketing spending. This includes any training, coaching, or consulting as well as the direct cost of the marketing itself. Plus the time and effort you need to invest personally.
Then compare these costs with the return you could achieve – i.e. your best and worst case outcomes. But remember that results don’t have to be just about money – they could be about time, peace of mind, confidence, freedom, or anything else that is important to you.
However, ROI isn’t the only thing you should consider.
Cost of Inaction (COI) is equally important.
You might save money by not investing in marketing or other external help, but what’s the cost of not doing it?
What seems like the ‘safe’ option can sometimes carry the highest risk.
For example, one law firm told me 6 months ago they had little work in one of their departments. They asked about getting my help and I gave them a proposal. They are still considering that proposal, occasionally coming back with further questions or for further proof of results my other clients have achieved. In the meantime, their department continues to have little work, and they are still £30,000 per month below their target revenue.
So this firm’s cost of inaction over 6 months has been £180,000. My proposal was to spend less than 10% of that to get my help to increase their monthly fee income by £30,000. Even if we had achieved only a £15,000 increase per month, they would now be £90,000 better off and would have achieved more than a 10x ROI.
Where in your firm is COI costing you more than you realize?
Before you can decide your ROI and COI for marketing activities you need to be clear about which strategies you should be investing in to grow your law firm profitably.
But if you aren’t sure which steps to take and you’d like my help to get clear on which strategies you should be investing in, then come to my one-day online workshop ‘Profitable Practice Secrets’. At this workshop, we’ll work together to analyze what your firm or practice needs in order to grow, and then start implementing the key ‘Accelerators’ to get more clients and increase your fee income and profits.
And if you’d like something you can access immediately, I recommend you watch my quick video ‘The 3 Step Accelerator Plan For Law Firms’. This is the 31-minute shortcut to getting more clients and increasing fee income and profits in your law firm (even during lockdowns) and it’s available to watch immediately – perfect if you’re in a hurry.