Unimaginative, Unethical and Completely Void of Creativity
This article probably doesn’t apply to you, so please read it and forward it to a lawyer you believe will benefit from the message.
Like hogs nudging each other at the troth, hourly billing lawyers look for ways to gorge themselves on the slop in front of them while they attempt to, simultaneously, stick their snouts into the slop of all other pigs in proximity.
Just in case the hog analogy is too ambiguous, I will be more direct:
Hourly billing is used by unimaginative, unethical lawyers who are completely void of any and all creativity.
I will explain.
Hourly billing is unimaginative.
Trading hours for dollars has been around since the beginning of recorded history. In fact, if you look at the oldest profession, you will see that practitioners in that industry (also considered a professional service) charge by the hour today just as they did centuries ago.
Many service businesses charge by the hour. Auto mechanics, plumbers, electricians, and high school math tutors are just a few examples. And workers in entry level jobs are also paid by the hour. The supermarket clerk, bank teller, postal worker and parking lot attendant are all compensated based upon the time they put in.
The ubiquity of hourly billing makes it easy for clients to understand. This is one of the reasons lawyers give when they cite billing their clients in six minute increments. After all, isn’t complex commercial litigation akin to picking up cheeseburger wrappers in a parking lot?
“Besides, every case is different,” says the hourly billing lawyer. “Even though I have tried dozens of cases and represented hundreds of clients, how am I supposed to know what lies beneath the surface of your case? I mean, I guess I could do a comprehensive diagnostic review of your matter and ascertain your desired outcome in advance. But that would mean investing time upfront for minimal compensation. I feel like I am being nudged to the end of the troth because nobody else is doing that.”
As the “everyone else is doing it” justification surfaces we reflect upon visions of people lighting up cigarettes, eating charbroiled meat and refinancing their homes at 105% loan to value. How can it be wrong if everyone else is doing it?
Hourly billing is unethical.
Let’s say I hire an hourly billing lawyer to handle the following litigation matter for me:
A guy was going to sell me his boat and he has changed his mind. I gave him a $100,000 deposit and he refuses to refund it to me – saying he has already spent my money. I want my money or I want to complete the deal for the boat as soon as possible.
Since the lawyer charges by the hour, how does he maximize his fee? He spends as much time as possible on this matter.
Doesn’t that place his interests in this case in conflict with my interests?
I want my money or the boat as soon as possible. If the hourly billing lawyer resolves the matter quickly, he limits his compensation because he cannot bill for time that has not yet passed. Yet if the lawyer drags the matter on and antagonizes the opposing party, he stands to earn more money.
Need another example of the lack of ethics promoted by hourly billing?
Top billing lawyers in big law firms (the hogs with the largest snouts) often bill in excess of 2,000 hours per year. This means, on average, they bill 41.75 hours per week or more. That’s a little more than 8 hours per workday.
So from the minute they get into the office to the time they turn off the lights they are working on client issues. They take no time off to have lunch. They take no personal phone calls. They attend no administrative meetings or continuing education events. Every time they go to the bathroom they think about a client.
Of course, I’m sure they don’t do that. They probably have at least a couple of unbilled hours each day and probably work an additional day or two each week… That means they work seven days per week, for an entire year and bill six hours each day in order to hit that 2,000 billable hour number.
Is this possible? Technically yes. Is it likely? You tell me: Working seven days per week, nonstop for a year? Or working a combination of more hours in fewer days and taking one or two days off per month? It’s possible but not likely over an extended period of time.
Yet some attorneys consistently bill over 2,000 hours every year, play golf on weekends and manage to find time for vacation. How do they do it?
You draw the conclusion.
Hourly Billing Reflects a Lack of Creativity
What makes you different?
All lawyers look the same. All lawyers say the same things when you interview them. They are smart. They are educated. They have excellent track records. (There must be a crappy lawyer out there somewhere who keeps losing to all these great lawyers but I have yet to meet him). And they all bill by the hour.
If you want to be viewed by your client as different, come up with a different way to be compensated.
Lawyers have made themselves commodities.
The client has no choice but to compare you to everyone else based upon price. Your hourly rate has become your name tag.
The Boss says to the General Counsel: “Please call the $250hr guy for the parking lot dispute and use the $400hr guy for the executive compensation agreement.”
If you bill by the hour, this analysis may seem harsh. But you have to ask yourself:
“Would I rather be called on my bullshit by a law firm strategist or by a client?”
Think about it:
When I take you to task, it hurts your pride. When the client takes you to task, it hurts your wallet.
Call your friends who bill by the hour and tell them to lift up their snouts. Times are changing. The troth will soon be dry.
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EmailShould You Care That I’m Back on Twitter?
I made the decision to start using Twitter again.
This should not impact your life in any way.
I’ll explain why in a minute but first some background…
I was an active participant on Twitter for the better part of 18 months in 2008/2009. I spent a great deal of time using this form of media. I had thousands of followers, some of whom were actual people. I had a few meaningful conversations but never developed any business as a result of my involvement.
So I cast it aside.
And now I’m back.
But this time things are different.
I’m not using Twitter as a broadcast media to develop business. I’m going to use it to keep abreast of things that are important to me. I’ll follow the beat writers from my favorite sports teams. I’ll follow the liberal media. I’ll have Twitter conversations with friends and family (people with whom I would have a real life conversation) and I’ll broadcast an occasional promotional message.
But I’m not going to go crazy following 20,000 people just to get half of them to follow me back. And I’m not going to repeat the same posts over and over again to get you to read something I wrote.
Twitter is a good way to aggregate news and information. It may have some value in developing relationships. I think I’m a more mature Twitter user now so I’m going to give it another try.
Connect with me on Twitter: @TheDaveLorenzo
Or don’t.
Join Me in New York?
Don’t let the dog days of summer get you down.
July is the perfect time to make sure your cash flow heats up.
I’d like to help you make more money and have more fun doing it.
This summer I’m offering an opportunity to put your client attraction systems on overdrive.
I will be conducting two private business strategy sessions with attorneys from all over the world in New York City on July 24, 2012.
This is something I’ve never done before and it’s something I probably won’t do again in 2012.
This will be your only chance to work directly with me in New York this year and I’m limiting this opportunity to 20 people.
Details are below and this event is “first come first serve”. Once the 20 slots are filled, we will not be accepting any more attendee applications.
Don’t miss out. Call now to reserve your place.
Contact Kary Cheda today at (305) 692-5531 or kcheda@dlorenzo.com to learn more.
Rainmaker LegalMax™ Summit
July 24, 2012
New York
Morning Session on Business Strategy
7:30AM
During this session we will discuss:
Expert Status: How to select a powerful market niche for your law firm and eliminate your competition.
Thought Leadership: Clients will beg you to work with them once you learn this powerful strategy.
Powerful Pricing: How to maximize fees and deliver value to your clients well beyond their expectations.
Unlocking Hidden Value: There is gold right in your current client database. Once you realize how to harvest it, you’ll be amazed at the results.
Developing Systems: Not enough hours in the day? Create systems to leverage your most valuable asset… your time.
Attendee Case Analysis: Each attendee will have an opportunity to have a 30 minute case analysis call with me prior to the event.
Your Investment for the morning session is only $299
Afternoon Session on Law Firm Marketing
2:00PM
During this session we will discuss:
The Five Things Your Website Marketing Guy Hopes You Never Learn: Internet marketing scams are abundant. How do you find a web developer you trust?
The Most Cost Effective Marketing Strategy for a Small Law Firm: Don’t have thousands to spend on TV? No problem. We’ll show you how to compete with the big boys.
The One Thing They Forgot to Teach You in Law School: This one thing is costing you thousands of dollars each year. You can fix it in five minutes.
Ethics and Law Firm Marketing: The truth is the best marketing strategy. How your story can be your competitive advantage.
The Ultimate Law Firm Marketing Plan: You will leave this session with a twelve step actionable plan for developing new business.
Your investment for the afternoon session is only: $299
Sign up for both sessions and save:
Sign up for both sessions at the discounted rate of $499 for the entire day plus I will provide you with my Rainmaker’s 30 Day Fast Start Marketing System - a $1,000 value - absolutely F-R-E-E.
Save one hundred dollars on the session plus you get a bonus gift worth $1,000 but only when you sign up for both sessions.
Contact Kary Cheda TODAY and register at (305) 692-5531or by email at kcheda@dlorenzo.com
Go One-On-One with The Rainmaker
Private Sessions Available
July 23, 2012 and July 25, 2012
While in New York I’ll make myself available to work with you and/or a group of attorneys from your firm.
These power sessions will be customized to meet your needs and they include two months of follow-up coaching.
During our time together we will analyze your specific firm’s current state, future goals and create a customized action plan specific for your law firm.
A strategic review will be sent to you prior to our meeting in order for me to learn about your firm. The time we spend together will be solid working time you will come away with a step-by-step action plan in order to help you achieve your desired goals.
Not everyone is eligible, you and I must speak to determine if a private session is right for you.
Contact Kary Cheda TODAY and register at (305) 692-5531or by email at kcheda@dlorenzo.com
Is Your Law Firm A Roach Motel?
You may remember The Roach Motel.
It is a device that lures the nasty little bugs into a box with pheromones and then catches them in glue until they struggle to their death. The packaging of this simple bug trap has made it a bestseller in its market for 35 years.
I find that many lawyers these days have developed law firms that function exactly like The Roach Motel.
The practice of law was attractive, enticing and seductive. You saw the attractive package and you entered. Now you are struggling mightily and you fear that you will continue to struggle until you exhaust all energy.
You’re in and now you cannot get out.
Your law firm is not what you thought it would be.
You spend 12-16 hours each day working on client matters. Your kids are growing up and you know this because you peek in on them while they are sleeping. You’re afraid to turn away any business because you never know when the next client will come along. You often find it is easier to spend an hour handling a simple task yourself rather than hiring and teaching a young lawyer how to do it. Besides, hiring takes time and you have none of that to spare.
You are just like that ugly little bug, stuck on the glue struggling to escape.
But there is hope for you.
You are not a small-brained insect. You have the ability to change your behavior. You can escape from the torture of building a law firm you cannot stand. And you can escape quickly.
But you have to be committed to making a change.
If you are committed, I can help you.
Call me today to discuss how you can escape The Law Firm Roach Motel. For a nominal consultation fee we can discuss your options. 888.692.5531
Don’t you deserve the opportunity to make a great living and live a great life?
Remember: Sometimes lawyers check in but they need help checking out.
Law Firm Marketing Advice You Must Ignore
There are lots of people out there today who want to take your money. In the process of trying to sell you their version of “snake oil” they make all kinds of promises.
Unfortunately, most of those promises are hollow assertions made by people who have not used marketing to build a business…ever.
The problem: Most lawyers are so desperate for clients that they will listen to anyone with a microphone or a column in a national lawyer publication.
Here are three of the more egregious lies that you absolutely must ignore.
Lie Number 1: The Internet Is All You Need
Some lawyers get a huge number of clients from the Internet. They use Search Engine tricks, pay-per-click advertising and advertising on Facebook to make their phones ring. There are two problems with using the Internet as a marketing panacea:
1). The Internet is constantly changing and evolving. If your Internet advertising team cannot keep up with the changes, you will wake up one morning and find that your client base has dried up.
2). Relationships always trump clicks and page views. The person who finds you on the Internet is a shopper. He/she is probably looking for a bargain. You may spend time with them only to find they can’t or won’t pay you.
You should definitely have an Internet strategy but make sure it is just one piece of your overall marketing plan.
Lie Number 2: Focus on Brand Building and Clients Will Follow
Each of us has a personal brand. Your brand is essentially your reputation. The misguided part of this advice is that you should focus on building a reputation. Think about that…If you have to focus on building a reputation there is no substance to your work.
As an alternative to building a brand, I recommend you focus on doing good work. Take care of your clients. Go the extra mile. Make a difference in their lives. If you do that your brand will be strong.
The “branding experts” have it backwards. In truth, build your law firm on a foundation of service and integrity and your brand and the clients will follow.
Lie Number 3: Former Lawyers Are Excellent Sources of Law Firm Marketing Guidance
This statement just defies commonsense. If someone was a lawyer, and the quit being a lawyer to teach others how to build a law firm, why would you listen to them? If they were so good, so successful at attracting clients, why wouldn’t they keep attracting clients and practicing law?
Put another way: Would you want to learn how to drive from someone who had several car accidents in the past two years?
If you want advice on the law, ask a lawyer. If you want advice on marketing, ask a marketing expert.
We are living in tough economic times. Even the con artists are having difficulty making a living. Don’t be a victim. If you hear any of these lies, run the other way.
Bragging vs. Self Promotion
One of my clients called me a few weeks ago with a dilemma you will find familiar.
Sidney (or Sid as his friends refer to him) is an excellent lawyer. He works hard and attracts the bulk of his clients by referral. Sid is a bit of a generalist. He does mostly corporate transactional work for his clients but, as a former litigator, he will also handle some simple litigation matters.
Sid is on the board of directors of his local Chamber of Commerce. He is one of three lawyers on the board and he enjoys helping the Chamber make leadership decisions. Here is where Sid’s dilemma begins. Sid has watched the other attorneys receive referral after referral from other members of the Chamber of Commerce board of directors. Yet Sid gets very few referrals from those folks.
When he first approached me about this issue, I advised Sid to invite each of the members of the board out to lunch to have a conversation and attempt to understand why the business was not going his way. This proved to be an enlightening experience.
As Sid interviewed the other members of the board of directors he began to realize that people thought he was a nice guy, but they just didn’t remember him when it was time to pass a referral. You see, the other lawyers on the Chamber board were always aggressively promoting themselves at the meetings. And they were aggressive with follow-up. This kind of thing always made Sid uncomfortable. He never wanted it to seem like he was bragging.
Obviously this scenario sounds familiar. I’m sure you feel the same way. You would love it if the world knew how great you are but the thought of trumpeting your accomplishments makes you uncomfortable.
Here are three ways to promote yourself without seeming like a braggart:
Host an Event at Your Office
Your office should look like a shrine to your greatness. You should have photos on the wall of you shaking hands with famous people. You should have your advanced degrees on display. You should post “thank you” letters in frames all over the place. Then, once each quarter, you should invite 50 people to your office for an informal wine and cheese event.
People will definitely take notice of the information and accomplishments that adorn the walls of your office. You will look good without saying a word.
Send an Orientation Kit in Advance
Each week you should be meeting with at least three potential referral sources. These meetings generally take place over a meal. Be sure to send an “orientation kit” in advance to the person with whom you are meeting. This kit should include testimonials from past clients and/or influential people in the community. It should also include any press clippings highlighting your successes.
The cover letter accompanying the orientation kit should be from your assistant/office manager. It should explain that your office sends out this kit in advance of every meeting you will be attending.
If you develop this strategy properly, it is very impressive. People come to a meeting with you full of knowledge about your background and accomplishments.
Have Someone Make the Introduction
You probably know about 250 people (more or less). Research has shown that number is the “sphere of influence” of the average businessperson. But that means each person you know also has a sphere of influence of about 250 people.
When you have identified specific individuals you would like to meet, reach out to your natural network (this sphere of influence) and ask if someone can make an introduction. We always think more highly of people who are introduced directly to us.
It is not unusual to have a discomfort with promoting yourself. Just keep in mind that people cannot hire you if they do not know who you are or what you do.
The Skinny Cook, The Imperfect Priest and Me
We all love to count other people’s money.
It’s a pastime that has become an obsession.
I hear it all day long.
“How much do you think that guy makes?”
“Do you see the car he drives?”
“Wow. Look at those shoes. She must be doing well.”
People have the expectation that expensive accoutrements mean high net worth.
In most instances, this is not the case. If you have any doubt, check out the work of Dr. Thomas Stanley. His research proves that affluent people become affluent because of how they save and not because of what they make. In short, high income does not equal high net worth.
Do This Get More Clients For Your Law Firm
Everyone wants to see the baby but nobody wants to deal with the labor pains.
It’s human nature.
I have to work really, really hard to get most of my clients to implement the strategies I teach. In fact, I have to sell them on the idea that taking action is the key to success.
(Most people believe that good ideas are the key to success but, in reality, an idea that is not implemented is worthless).
If you want something that is as close to a surefire client attraction strategy as I can give you, listen up. I’m going to give it to you, step-by-step. Here it is:
The weekly newsletter is one of THE MOST POWERFUL client attraction tools ever invented.
Here’s how you can implement this, immediately:
Step 1: Collect contact information from everyone you meet. This is not rocket science. After you have a conversation with someone, ask them if you can add them to your newsletter list. Once they agree, ask for a business card.
Step 2: Add that contact information to an email program that allows you to send email newsletters in bulk. Do your homework in this step. Use a reputable service that has a high deliverability rate.
Step 3: Send a “Welcome” email. This step is critical. You want to send an email to everyone who signs up and you want to ask them to “confirm” their subscription. This confirmation is known as a “double opt-in” and it helps make sure you are sending email to people who really want it. Almost every email service requires email confirmation these days and they make this process easy.
Step 4: Send your subscribers a weekly newsletter. You may bristle at the frequency but that is the key to success. Frequency of communication builds trust. If your newsletter is interesting, people will want to read it every week.
What you can expect
The results from this simple process will amaze you.
It will take about six months before you see any clients from this effort. (Hey, it’s not magic. People on your list need to get to know you, like you and trust you.)
If you focus on building your list and if you provide interesting and entertaining content every week, you can expect people to contact you when they have a need for your services.
Your Competitive Advantage
Think back to the first time a client paid you money for your services. Do you remember the feeling you had when you looked at that check?
You essentially created income from thin air.
Yesterday you didn’t have this client and this money and today you do.
As you read every word of this article I want you to keep that feeling with you. The euphoria you felt when you were paid by a client should stay with you throughout this article.
That first client (and that first check) is special. It’s special because it serves as a validation of your ability to “make it” on your own. It’s special because it reinforces your belief in yourself. It’s special because it pays (some of) the bills.
Now that good feeling has probably been replaced with the anxiousness you feel while you wait for the phone to ring.
And you wonder how you went from euphoria to anxiety so quickly.
Does this sound familiar? It is a common concern among lawyers. Everything is going well and then, all of a sudden, things just stop. Or they slow down to a trickle.
Why does this happen?
If you ask one hundred lawyers you would probably get at least fifty different answers. Then you’d probably get another forty-nine “I don’t know” responses.
The one person who could probably give you the accurate answer is the person who has figured out how to keep the phone ringing. That lawyer has learned the secret to attracting clients on demand. He’s learned how to manage his law firm so he can get home, on time, for dinner every night.
Just what is this secret? What is this competitive advantage?
The secret to keeping the clients coming in the door while living a great life is a dedication to continuous improvement.
The secret lies in constantly trying new things. The secret (which isn’t really a secret at all) is to constantly look for new and innovative ways to attract clients, engage referral sources and deepen relationships.
The minute you personally stagnate, your law firm stops growing. The minute you complain about “not having time to learn something new” you have doomed yourself and your law firm to failure.
The competitive advantage enjoyed by highly successful lawyers is the fact that they are always learning and growing. They implement one new thing in their law firm on a monthly basis.
When was the last time you implemented something new? What was the last good idea you had about law firm marketing, business strategy or productivity improvement?
New Book: Client Attraction Secrets for Lawyers
I am pleased to announce that my new book, Client Attraction Secrets for Lawyers is now available for ordering. The book will be released on March 5.
Click here for a link to the publisher’s page where you can read more about the content and powerful information packed into the easy-to-read 150 pages.
This is a fantastic crash course in ethical, effective legal marketing that will help you Make a Great Living and Live a Great Life ® and it is only $19.
Grab your copy today while supplies last. Visit the James Publishing website now.
