Smart Money, Dumb Money and Law Firm Marketing
Are you a victim of dumb money and law firm marketing? Do you know what I mean? Use this article as a guide.
If you only remember one piece of advice about law firm marketing, let it be this:
All good marketing is measurable.
When it comes to marketing, there are two types of investments you can make:
Smart Money Investments
These are marketing activities that are broken into steps that can easily be measured and adjusted.
For example, you:
- Are a Florida Intellectual Property Attorney who focuses on technology.
- Receive a significant amount of referral business from corporate transactional attorneys.
- Purchase a list of all members of the business law section of the Florida Bar.
- Match that list of subscribers to Technology today magazine.
- Develop and execute a seven-step direct mail sequence to the attorneys who appear on both lists. Each step has a different message.
- Measure the response rate at each step in the process, and you measure the ultimate return on investment from your mailing. (This helps you identify and refine your message).
- Invest smart money in direct mail, email, events, internet marketing, some forms of print advertising, and many forms of electronic media.
Most law firm marketing consists of spending dumb money.
This means money invested where a return is not precisely measurable.
- Bus stop benches
- Car wraps
- Trade show booths
- “Image or Brand” Advertising
These forms of marketing do not work for Law Firms because they require repetition and market saturation. But they are specifically “dumb” because you cannot measure the target audience, activity, and results with any specificity, and you cannot make any adjustments while your marketing campaign is in progress.
Why do lawyers invest dumb money in marketing?
There is no way to know for sure since it varies from law firm to law firm. But just guessing I’d have to say it is because they don’t know any other way.
That’s one of the reasons we are here. To help lawyers make smart decisions with their marketing.
If you want to join a community of smart people, follow this link to my Business Development Community. You’ll be amazed at how much benefit you receive – including referrals.