Cost per case, or CPC, is an easy and efficient way to evaluate how well your marketing channels are performing. CPC determines exactly how much you spent to acquire one new client:
CPC = Budget Spent on Marketing Channel / # New Clients
But what makes a “good” CPC? $100? $1,000? The answer is not as simple as one benchmark number for all firms to strive for. A desirable cost per case will all depend on how much you earn from one client’s settlement.
Cost Per Case Across Different Areas of Law
Depending on how much your firm earns on average per settled claim, you can afford to pay significantly more (or less) in marketing dollars to sign one new client. For example, in June 2017, Social Security disability attorneys earned $3,164 on average for each approved disability applicant. Personal injury attorneys typically win $10,000 or more per successful trial.
If a Social Security disability attorney and a personal injury attorney both had an average CPC of $500 from running pay-per-click ads on Google, the personal injury attorney would be significantly more successful with the campaign, even though the overall costs are exactly the same.
Cost Per Case Varies in the Same Area of Law…
Your firm will likely have wildly different success than neighboring firms. This means that even attorneys taking cases of the same type may have different CPC needs.
A chapter 7 bankruptcy attorney in rural areas of the US will often receive under $1,000 per claim. Other attorneys handling chapters 11 or 13 bankruptcy will be able to afford a significantly higher marketing budget.
A Good Rule of Thumb
Most CPCs will be profitable if you are spending around 15% (or less) of your expected case settlement per client. This usually means attorneys in specific areas of law should spend:
- Social Security disability: $450 and below
- Personal injury & workers’ compensation: This is very volatile and completely varies depending on the cases you sign, but if your firm averages settlements of $30,000, you could afford a CPC of $1,500 and below.
Again, there is no perfect guideline. If your firm wins more cases than others, or receives higher settlements from profitable mass torts, then you can afford to spend more on marketing.
Lead Generation and Cost Per Case
When working with a lead provider like eGenerationMarketing, your firm is able to “skip” some of the more expensive aspects of lead generation, such as actually bidding on keywords on Google or Bing, or paying to have a TV commercial air in your network.
Our clients see a highly desirable CPC because instead of paying for an ad, you’re paying for a claimant’s contact information as soon as he or she shows interest in speaking with a legal professional. Our Social Security disability clients see an average CPC of $300, and our personal injury clients can typically expect a CPC of $550. Some clients who are more successful with the service have even lower costs.
To learn more about our Social Security disability, personal injury, or other legal lead availability, give us a call today at 617.800.0089.