Firms that operate in several markets often set budgets by dividing a total across offices or states. It is administratively simple and it ignores the two variables that actually determine returns: what a market costs and how much of it your firm can serve.
Start with intake capacity, not with spend
The binding constraint in most firms is not budget. It is how many new matters intake and attorneys can handle well in a month. Allocating spend to a market where leads will sit unworked converts marketing budget into unreturned calls. Establish capacity per market first, then fund to it.
Build a per-market view
For each market worth funding, assemble what you know:
- Cost per lead available from your sources in that market.
- Historical contact, consultation, and retention rates for that market.
- Resulting cost per retained case.
- Average case value, which can differ substantially by jurisdiction.
- Intake capacity and attorney bandwidth.
Markets where cost per retained case sits comfortably below the value of a case, and where capacity exists, are where incremental budget belongs.
Fund the test separately
New markets have no history, so they cannot compete on the same numbers as established ones. Setting aside a defined portion of budget for market tests, with a fixed duration and a decision date, keeps experimentation from being cut every time an established market has a strong month.
Expect seasonality and competitive pressure
Advertising costs in legal categories move with competitor activity. A market that was efficient last quarter may not be this quarter, without anything changing on your side. Reviewing allocation monthly, rather than annually, allows for adjustment before a full budget cycle is spent at unfavorable rates.
Separate brand from acquisition
Billboards, sponsorships, and general awareness spend serve a different purpose from direct-response campaigns and should not be judged on the same metrics or drawn from the same pool. Blending them makes both harder to evaluate.
Watch for the point where volume stops converting
Pushing more spend into a fixed market eventually reaches audiences less likely to convert, and cost per retained case rises. Recognizing that ceiling is more valuable than defending a market share target, and usually signals that the next dollar belongs in an adjacent market or in intake capacity instead.
If you are evaluating market-level volume for workers’ compensation or personal injury, book a consultation and we will review what is available.