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Marketing your mediation practice, how much to spend and how to spend it
12 March 2007In response to a “tag” by Vickie Pynchon of the Settle it Now — negotiation law blog, on the topic of “how to start a mediation practice” and in connection with a question posed by a mediator I was consulting with recently, here are some thoughts on marketing your mediation practice.
A Mediation Marketing Tips reader asked the following question.
Question: How much she should I spend on marketing my mediation practice?
Answer: It depends on what your goals and objectives are and your niche. How much money should you spend? You must decide how quickly you want to grow your practice. Because mediation is a very personal service, the biggest expense is going to be in terms of your human capital — your time, intellect and energy.
Marketing experts from other service industries estimate one should spend between 15 and 30% of the gross income you want to achieve. The percentage you should target is inversely proportional to your revenue. The more you make, the less you spend. If you are just starting out, you may want to spend closer to 30% and if you are already well established, then annually you can spend less on marketing.
So, for example, if you want to earn $100,000 in mediation income you would spend at least $15,000. This is a good ball park figure if you are ready to mediate full-time. Certainly, you can spend less and the greater cost will be in terms of your opportunity cost (your time and energy, foregoing earning income from other avenues). Perhaps you are giving up a $100,000 year salary or more if you came from the legal field. As most experts say, don’t quit your day job at first, then, you must quit your day job. See prior post on this topic.
There is some truth to the saying that you need to spend money to make money. I do recommend that whatever marketing you do, you think about your Return on Investment (ROI) and your Return on Your Marketing Dollar (ROMD). I see a lot of mediators who are unwilling to spend any money to grow their business because they are uncertain about what the returns are going to be. This is when working with a professional can help.
The truth is that if you are committed to making mediation your life’s work and want to do it as a profession and not as a hobby (or as a court volunteer), then be prepared to spend 2-5 years to build it and be prepared to spend your time and money to make it happen. For those who persevere and make it, like all the experts I interviewed for the Success System, the rewards are well worth it.
Here are some marketing items that most mediators will want to invest in:
1) Blog/Web site — internet presence. In today’s world every mediator really must have a web site. A combo site with static pages and space for blog entries is ideal. The good news is that if you start off with a blog you can do this for free or customize it very inexpensively. There are web designers that can customize a blog for around $150. Or you could have international coders bid a job on elance.com or rentacoder.com. I had this blog customized initially for $49 and then my web designer further customized it later. I use wordpress.com for my blogging platform and it is really easy to use (and it’s free).
Web domain registration and hosting = approximately $60-$100/year
Web design $150-$5000 (if you include a design logo, newsletters, autoresponders and other marketing tools)
2) Keep in touch: autoresponders automatically send out emails to your lists (as you program them to). You may want to offer a special report or newsletter or some other free item to begin generating a mailing list. Also, begin collecting the email addresses of those attorneys or parties you work with. Then periodically through your autoresponder you can send out an email. I use aweber.com $20/month
The biggest expense by far is your time. You will need to invest a lot of time into marketing your business. Once you have your internet presence established, you will want to create a marketing plan and update it periodically.
Some line items to consider for your marketing/business development budget:
Business/marketing Coach ($99 - $1000/mo)
Marketing workshops at conferences ($250-$500)
Print materials: logo, brochure, letterhead, business cards etc. (I don’t recommend spending a fortune on these items and if your budget is tight in the beginning you can forego printed brochures and rely on your online presence - which is what I do) $500-$2000 (or more with some PR services)
Conferences (advanced training and ADR conferences) $1500 x4 per year = $6,000
On-line registries (mediate.com, mediationnow etc.) Depending on your niche, if you are hired by the public directly (e.g. family, elder and other mediation niches), this can be a good investment to have a listing with mediate.com. If, however, you are targeting litigated cases, then very low ROI
Marketing Strategies (time and small amount of money)
Writing (you can hire a writing assistant if you don’t like to write)
Speaking (have a free talk to present to your target audience, practice at mediation conferences)
Networking — go to functions in your target market ($200/quarter)
Follow up — emails, phone calls (no cost, time cost)
Direct Outreach — mail, newsletters, public relations (TV, radio, online media and social media connections)
Be smart and strategic about how you market your practice and you can make your money go far. If you are like me, and don’t want to spend the time figuring out all the technology yourself, you can hire someone. If you have the time and inclination to do some of these items yourself, go for it. Just remember, don’t skimp on creating a professional image. Your image and the professionalism that you project in your business will send a message to prospective clients. So, I don’t, for example, think you should make your own brochures. Save your time and work on your professional blog/website instead.
I have worked with a coach since 2005 and have found this to be an excellent investment of my time/money. By far it is your sweat equity (as you engage in education based marketing) and the outstanding work that you do at the mediation table that is going to grow your practice. You have to want it and you have to be willing to pay the price. If that is you and you are good at what you do, you can build your dream practice.
NEVER GIVE UP!
Build your dream practice today.
Kristina Haymes
p.s. Our special price of $97 on the success system expires soon, www.mediationmarketingsecrets.com. Also our mediation rainmaking success coaching, featuring mediation veteran and pioneer Woody Mosten and me is here. Go to www.mediationcoachingclub.com and sign up for your free consultation.
Posted in Marketing Strategies, Practice Building Advice, Answers to your marketing & practice building quest
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