Screwing Lawyers: Calculate The True Cost of Your Agency’s Long Term Contract
I hear this story about once a day from a frustrated lawyer… “Our marketing isn’t working.” “My agency doesn’t tell me what they are doing.” “Our rankings haven’t improved.” “The vendor won’t let us into Google Analytics.” And so on and so on.
Being frustrated with your marketing isn’t uncommon or even unfair. Sometimes best efforts belly flop (even at my own agency.) But the lemon juice poured in the fresh cut is recognizing that you are contractually stuck with the ineffective, lazy, useless, opaque “efforts” of your marketing agency for the foreseeable future.
I received this email today from a frustrated firm:
“Just a quick update: we unfortunately found some fine print yesterday that we had previously missed. It looks like we are stuck with FindLaw until November of 2020.”
The true cost of your long term marketing contract isn’t the value of the contract to the agency ($8,200 a month for the next 36 months…) but actually the opportunity cost of all of that lost business your firm could be generating if your agency was actually effective. Using extremely rough math…that $8,200 monthly cost equates to roughly $300K over the life of the contract, but it really should be measured as three years of your firm struggling to find clients while your bottom line bleeds…drip drip drip…into your agency’s top line.
Using basic business metrics, if that investment returned just a pathetic 4x (i.e. cost of client at 25% of the value of the matter) that $300K expense is really $1.2 million dollars in revenue your firm isn’t capturing. And, your underperforming agency has NO incentive to turn this around – because their profitability is inversely related to how hard they work for you.
So let’s be clear: entering into a long term contract with a marketing vendor benefits them, not you. As soon as you are locked in, as this is a service industry, your agency’s profitability skyrockets by doing as little as possible for you. This is compounded by the deliberate obfuscation of performance data. Ask yourself why your long term agency contract precludes you from access to your site’s Google Analytics or Google Ad campaigns. What do they not want you to see? What are they not doing for you?
You are supposed to be sophisticated savvy lawyers. Imagine how you would act if you could be hired under the same terms that you hire agencies: long term, guaranteed retainers with no requirements to share what you are allegedly doing for your clients? Would you do client work or instead hire hordes of cold callers to assail the front desks of your next prospective victim?
Oh, and before you sign…read the fine print.