Your Fee Is Too Low
I was totally embarrassed when I heard that statement. I’ll admit it was the first time I had ever heard it after being in business of providing professional services for nearly 20 years.
Here’s the story:
A few years ago I was working with an attorney who had a solid book of business. The guy was doing just north of a half million dollars a year and it was coming from about 21 different clients.
He was a person of high integrity and he built his practice one relationship at a time. The big problem facing this forty-something attorney was that all the income was completely dependent upon him. He acquired the clients. He did the work and he answered every phone call.
And he was sick of working so hard.
My job was to help him figure out how to grow his law firm enough so that he could make the same (or more) money and not have to work so hard – while keeping his client relationships intact.
The solution we created transformed his business.
We decided to hire three new associates into his firm. Each one was assigned seven of the firm’s clients. They were each dedicated to taking care of their seven clients – no more and no less. Each associate received a base salary and a bonus based upon the growth of their relationships. So if one of their clients grew by $10,000 in any given year, the attorney who worked with that client received a $2,000 bonus.
This solution forced each of the attorneys to deepen their relationship with their clients and, in one year, they doubled the firm’s revenue.
At year end, when my client took me to lunch during the holidays, he uttered those magic words: “Your fee is too low”. He went on to say: “That one strategy – dedicating lawyers to a set number of clients and compensating them for deepening the relationship – has transformed my law firm”. As he finished uttering those words he slid an envelope across the table. In it was a sizable “bonus” for me.
Keep in mind that I did not perform any magic in my work with this client. All I did was get him to look at the situation from a different perspective.
Within 12 months, this lawyer went from running a one attorney practice that produced slightly over $500,000 in revenue to running a 4 lawyer law firm that produced $1.3 million.
Take a few minutes this week and look at your law firm from a different perspective. What could you be doing differently to make the practice of law easier for you and more valuable for your clients?
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EmailEthics and Law Firm Marketing: Who Else is a Flawed Human Being?
Too many people pretend to be perfect in the eyes of others. Not only is that unrealistic it is also unethical.
In any profession, your ethics matter. You must be completely transparent.
Take a look at people who run for political office. As I write this (May 2011) Newt Gingrich has announced that he will be running for President of the United States. Before the announcement was made, people were already jumping all over him for his two failed marriages, the tales of adultery and womanizing from his past and the financial difficulties he and his companies have experienced.
Do these things make him unfit to be President of the United States? Maybe. We like our Presidents to cover up their flaws until their behavior gets the best of them while in office.
As the provider of professional services, as a lawyer, you will have an intimate relationship with your client. He must trust you implicitly. That’s why you have to be transparent when it comes to your flaws and your character.
Will this cost you some business? Maybe. But nobody will ever be able to call you inauthentic or a fraud. And you will be able to look yourself in the mirror and know that you have been honest with your clients.
A few weeks ago I saw an interview with Jerry Jones (the owner of the Dallas Cowboys) who currently has a personal net worth of about $1.1 Billion. He told the story of how, when he first purchased the team, he went up to the counter of a car rental agency and presented his maxed-out credit card which the clerk promptly cut up right in front of him.
Would you hesitate to invest in the Dallas Cowboys now because Jerry didn’t pay his credit card bills years ago? Should a person’s past financial or personal history keep you from working with them? How do you feel about Jerry knowing that he discusses his financial issues openly rather than covering them up?
I’ve been there. Many of us have. And with the tough economic times of the past three years, many of us made bad investments in Real Estate that resulted in business decisions to sell the property for less than it was worth. Doctors, Lawyers, Bankers – all have made bad financial decisions. Does that make them unqualified to be a doctor, a lawyer or a banker?
Is it fair to judge these people based upon their past decisions? I think it depends upon how you come upon that information. Is it disclosed by the person involved or was it concealed?
My life is the perfect example.
My rich background includes: A failed marriage, financial problems, being fired by clients and companies, having public (and often messy) disagreements with past partners and dealing with people in my life who were convicted of a crime.
What does this say about me? Does it say I picked the wrong people to marry, be friendly with, invest with, and work with/for? Maybe. Have I learned from those mistakes? Absolutely. Will I make them again? Hopefully not. In my mind, those mistakes say that I am human. And as a human being, I handle adversity.
Do I brag to others that I have had these experiences? Absolutely not. But I do not run and hide from them either.
Keep that in mind as you work through the crisis-du-jour in your own life.
People make bad decisions – with their finances, with their relationships, with their choices of employment. Everyone stumbles.
My message to you is this: If you are struggling with one (or several) of these issues now, realize that you are not alone and this is not the end of the world. You will get beyond this difficult time in your life and you will be stronger for having gone through it
You cannot control how people will judge you. But you can learn from your past and move on. Be upfront and disclose this information. Then go about your business.
Ultimately you will be judged by the grace with which you handle these issues. Be transparent and do not judge others too harshly. Treat them as you would like to be treated and do not worry about the things you cannot control.
Listen To The People Who Vote With Their Wallets
The title of this article has been one of the rules I have lived by since my business career began.
This rule, simply stated, means to ignore the opinion of EVERYONE other than people who pay for your service.
Why?
Three reasons:
Most people are not qualified to evaluate you.
We only truly value things we invest in. That investment can be financial and/or emotional. Unless someone has invested in you or your services, they cannot give you an opinion of the value you provide.
Many of us receive opinions from detached observers. And while these people may be able to point out some areas for growth and development, they cannot speak about your services from the perspective of an actual interactive experience.
Do yourself a favor, if you want advice about the service you provide and the value the client receives, ask a client.
Everyone else is part of the problem.
If I had a dollar for every time I saw a lawyer receive bad business advice from another lawyer, I would have a pile of money the size of Mount Everest. Lawyers are the worst people to ask about strategy or marketing. The majority of lawyers believe you can ignore these business disciplines and live happily ever after. A select few lawyers believe marketing and business success can be found exclusively on line or in social media.
Remember this: Most lawyers in private practice struggle with their finances or they struggle with work/life balance or they struggle with both.
Ignore advice from other lawyers, even those you believe to be successful. If you want to know how to improve the quality of your service or your marketing message, ask your clients.
Your success benefits you.
Most people do not want to see you succeed.
I know. This is not the feel-good-happy-town account of the world you will get from many self help folks. But it is human nature. Several studies by leading institutions of higher learning have proven that seeing other people in pain actually helps most humans cope with the trials and tribulations of their own life. Sad but true. For additional proof, look at news reports and television ratings of reality TV.
If someone else has a subconscious interest in your lack of success, why would you want to take advice from them?
Your clients want you to succeed on their matters. They will give you valuable feedback. Listen to them.
At this point, you’re probably wondering why I am telling you to ignore business advice from everyone except your clients. After all, I give business advice to lawyers. Shouldn’t you listen to me?
This is precisely the thing that makes me different from everyone else who does what I do – especially other lawyers-turned-marketing-gurus.
I have developed systems, processes and practices based upon the opinions of lawyers just like you. I didn’t concoct these ideas in my basement after reading a marketing manual designed for carpet cleaners.
When I work with an attorney one-on-one, I interview current clients and past clients. I then develop the business strategy based upon the real world research. Having done this over one hundred times in the past three years, I have developed a good understanding for the perspective of the client.
But don’t take my word for it.
Call a few of your own clients. Ask them some pointed questions about their perception of the experience and value you provided them.
You may be surprised at what you find out.
Remember, the only votes that count come from people who vote with their wallet.
Ignore the Blowhards. Trust Yourself
I’m not sure why you came to this website.
Maybe you are here because you want more clients for your law firm. Maybe you are here because you are looking to hire someone to help you with law firm marketing. Maybe you are here just because you did a random Google Search and found it.
In any event, there are a few things I think you should know about law firm marketing before you read any further:
1: You can do it yourself.
You do not need to hire someone to help you with law firm marketing. You can go out and develop relationships on your own and those relationships will eventually lead to clients. Do not hire a law firm marketing expert until you try to do it yourself.
2: First be a good lawyer.
If you are a crappy lawyer you may still be able to attract clients but you will be doing the public a great deal of harm. If you suck as a lawyer, do not focus on marketing. Focus on finding a new career – preferably one that you do not suck at.
3. Embrace the True Definition of Marketing.
Marketing is relationship development. Sometimes this happens in a one-to-one setting. Sometimes it happens in a one-to-many setting.
Placing an ad on a billboard is a form of marketing just as a FREE consultation is a form of marketing.
Blogging is a form of marketing. There’s a lot of bullshit on blogs. Some people really believe the bullshit they write. That doesn’t mean it is true. It just means the author of the blog thinks it is true. Judge for yourself.
4. Do not fear the language.
In order for people to develop a relationship with you they must first know you exist. Marketing professionals have developed jargon to describe the process of relationship development. Just like someone must be an acquaintance before he becomes a friend, someone must be a prospect (prospective client) before he becomes a client.
If you want someone to “buy” (believe) your idea you must “sell” it to them (convince them).
Just words. Don’t get crazed.
5. If it smells like Bullshit, avoid it.
There are lots of unethical marketing practitioners in the world today just like there are lots of unethical lawyers. In many cases you need to get close enough to notice the stink of their bullshit. Do your homework. Ask for references before you hire one of them (from either profession). Do not rely on their words. Talk to the people who have paid for their service.
Do not judge one person because of the actions of another. If you have 10 bad experiences with lawyers does that mean that EVERY lawyer will be equally bad? No. The same is true of people who provide law firm marketing advice. You must do your homework and make sure you are working with someone who has your interests at heart.
Final Thought
Pompous assholes exist in every profession.
Use your head and do your homework (I might have mentioned that already). If you want legal marketing help, have conversations with several law firm marketing experts before you make a decision. There are a handful of true experts out there but they are hard to hire…mainly because they are busy. Just like lawyers…
Choices We Make
I provide guidance, systems and ideas to lawyers.
I don’t teach lawyers how to get rich quick.
Don’t get me wrong, some of the lawyers I work with improve their income substantially. But that’s not the reason my clients engage me.
My clients hire me to help them improve their income and get home for dinner, on time, every night.
These lawyers are not “get rich quick” kind of people. Most of them love the law. They enjoy what they do. But they also love spending time with family and living life.
Make a great living and live a great life is not just my firm’s slogan. It is what everyone who invests in my services wants – a great living and a great life.
You chose the law as your profession. That doesn’t mean you chose to sacrifice your life serving it.
We all make choices in life but that doesn’t mean you have to give up a great income to spend time with your family. And it doesn’t mean you have to spend eighty hours a week in the office to make an above average living.
But you do have to make some choices. You have to get your priorities in order.
You must choose the right clients. You must choose the rules under which you will operate your law firm. You must choose the advice you take and the advice you discard.
And you must choose to have thick skin. Because lots of people will be jealous if you have success at making a great living and living a great life.
I’m not a lawyer but I choose to work with lawyers. Why? Because I am good at helping people make tough choices. Lawyers trying to build a law firm and have a family life face some of the toughest choices in the business world.
I’m not going to help you get rich quick but I am going to help you feel good about the choices you make.
Most of the time doing the right thing is easy. It’s figuring out what the right thing is, that’s hard.
Are You Worth the Risk?
When a client comes to you with a problem he is anxious. He may never have faced this kind of situation before. He is worried about losing money, time and/or an opportunity. He knows that hiring the right lawyer is going to be the most important decision he will make toward achieving a favorable result.
In short, he is worried about the risk he is taking in selecting you as his lawyer.
Overcoming the client’s fear of making a mistake in lawyer selection is the single most important factor in law firm marketing. Most lawyers underestimate the depth of that fear.
There are six different elements of risk that come into play when a client is looking to hire a lawyer and you must overcome all of them.
Below are these elements of risk. I have also included some thoughts on how you can address this risk head on and make the client’s decision easier.
The risk of poor performance: The client hires a lawyer and the lawyer is not able to achieve the desired result.
To overcome this risk, show the client your past work. Help him feel comfortable with your skill level. Give the client the names and phone numbers of other people you have represented so he can check up on you.
The risk of financial investment: The client invests in you, you do not perform well and he is responsible for damages awarded to his adversary.
To overcome this risk, show the client the value he is receiving by hiring you. Help him see that NOT hiring you is the true financial risk because you are their best option.
The risk of loss of time: The client helps you become familiar with his situation. This takes time. If he needs to find another lawyer, he has lost the time he invested in working with you. In many matters, time is of the essence. If the client works with you and you cannot act quickly he may not achieve a favorable outcome.
Overcome this risk by demonstrating sensitivity to his time investment. Show up on time to meetings with him. Return his calls promptly and be attentive to his needs. If you are unavailable, make sure a member of your team responds to the needs of the client in timely fashion.
The risk of the loss of an opportunity: Your depth of knowledge is critical to the client’s success. If you miss an opportunity while working on his matter, you may cost him money or you may even jeopardize the entire engagement.
Start the relationship off by asking in-depth questions about the client’s situation. Show him that you are thinking about his matter beyond the superficial aspects of it. Asking good questions demonstrates the desire to completely understand a situation. This is critical to alleviating the client’s fear of loss of an opportunity.
Psychological risk: How does the client feel when he works with you? Does he feel like he is in good hands? There is a fine line between giving your client peace of mind and promising an outcome. You need to walk that line effectively and make the client feel good about your work. When you present your client with options and he makes a decision, reassure him.
Social risk: Clients talk to other people in their sphere of influence. Every interaction you have with a client or on behalf of a client either enhances or detracts from your reputation. Monitor what is being said about you in the community and realize that what you do is also a reflection on your clients.
Many times the client is making the decision to hire a lawyer during a brief conversation you have with him. You must, through your actions and your words, address each of these elements of risk to his satisfaction in order to be hired. Lawyers who are good at business development have made this a natural part of their initial client meeting.
If clients come to see you and leave without hiring you, you have a problem addressing these six elements of risk.
This is not unusual and it can be corrected. Call me today to find out how.
Law Firm Marketing Means Building Relationships
How are you?
That three word question, when asked with genuine concern, can be a powerful way to start or continue to build a relationship with a client.
Unfortunately, most of us ask that question and (subconsciously) hope we don’t get a lengthy answer.
Let’s face it, we’ve all had the experience of asking that question of someone at exactly the time when: their dog ran away, their kid failed a math test, they just finished a colonoscopy or they found something unusual on their spouse’s computer.
When you get those responses you immediately think: “That’s too much information!” And for most people, listening to those lengthy diatribes is frustrating and boring.
Today I’m going to share a secret with you. It’s not a get rich quick secret. It’s not a marketing guru secret. And it’s not a secret that only I possess. Many people know this secret but they fail to apply it.
Listening to the answer to that three word question is the secret to building your law firm.
You read that correctly.
Focusing on the lives of your clients, and having conversations with them about their lives, is the secret to building a successful law firm.
How can this be?
Isn’t there some sort of new technology that will help you attract clients? Isn’t there some kind of contraption that starts with the letter “i” that will help you increase your book of business?
Nope.
Law firm marketing is not about technology. It’s not about the latest fad web service. It’s about building relationships. Building a relationship starts with listening.
When you focus your marketing on building relationships it affects everything you do.
For example:
Is your website a static brochure that speaks only about your accomplishments, qualifications and credentials? Or does it offer solutions to, and education about, the most common problems your clients are facing?
How about replacing that ad in the daily business paper with an offer to get a free report? And in that report you address the very issue that is keeping your clients up at night?
How about starting a speech with a story that intrigues and captivates the audience because it engages them emotionally?
Your marketing must be set in the world of your client.
You must enter the conversation they are having around the kitchen table.
This is not something that comes naturally to lawyers. But it is something you can learn. If you need help or you are confused about where to start, give me a call.
In the meantime, you can send me and email and answer this question:
How are you?
What I Failed To Do and What You Can Learn From It
Have you ever felt bad for a client because they said they couldn’t pay you?
Ever discounted your fee because the client told you a sob story?
Let me tell you about a time I did that and tell you what I learned from it.
I had been working with Charlie the tax attorney for about two years. He is a great lawyer – maybe one of the best lawyers in his field in Miami. At the outset of our work, Charlie was the only attorney in his firm and he had a part time administrative assistant who worked with him on Tuesdays and Thursdays. He was billing about $200,000 per year back then. He shared an office with a criminal attorney who was a friend from Law School.
When we first started working together we would meet in weekly one-on-one sessions. Each week I would cover a topic with him, give him some action items, and he would religiously implement the things we talked about.
About six months into our work together Charlie and I were reviewing his financial statement and we realized that his billing had doubled. He was giving his part time assistant full time hours and he hired a paralegal to help him with his workload. When we reviewed his financial statements, he pointed to the time when we started working together and he said: “This was the turning point in my career as a lawyer.”
Things continued to go well for Charlie. Over time he hired another paralegal and an associate attorney. His client flow was increasing as was his billing. But something strange began to happen in our relationship. Charlie stopped wanting to see me every week. He became very slow to implement the adjustments I recommended. And when I recommended something he could not implement immediately, he would question the value of my advice.
This finally came to a head one summer day when he said he was “choking on my monthly fee”. He pointed out how expensive I was and how what he really needed was help with implementation because he “had enough good ideas”. And at that point he asked me to reduce my fee.
I wanted to keep Charlie as a client so I agreed to do it.
And for three more months, things were fine. Charlie’s firm had grown to over $800,000 in annual revenue and he had five staff members. He moved into a bigger (more expensive) office. He leased a fancy car. He was buying custom tailored suits. And then it finally happened.
Charlie called me from his scuba diving lesson in Aruba to inform me that he “just couldn’t afford to work with me anymore.” Again he said he had enough good ideas and he was going to take his time and implement them. Even the reduced rate was too much for him.
His practice had quadrupled in size, he hired three staff members, he had a beautiful new office, new clothes, a new car and was taking exotic vacations three times each year but my fee was too much.
And that’s where I learned the lesson.
Providing value to clients wasn’t enough. Helping them transform their law firms and their lives was not enough. I also had to demonstrate this value over and over – each and every time we met. I had to show them, in a subtle way, the value I was providing.
This experience changed the way I handled my work with my clients. It transformed the way I do business. These days I only personally work with a handful of clients. I intentionally keep my private client roster small so I can provide outstanding guidance and access to the few people who truly understand the value I provide and execute on the strategy we discuss. And I charge these people a significant fee for helping them grow their business and improve their life.
You can do the same thing in your law firm.
You can make a conscious choice to work only with qualified clients who appreciate your talent.
The key to transforming your law practice into an exclusive, private client firm is in your law firm marketing. What you say to your clients before, during and after you get hired makes all the difference in the world. How you develop your relationship is critical to their perception of your value. It is not enough to do good work. You must also be perceived as a highly valuable member of the client’s inner circle.
If you are ready to take your law firm to the next level, give me a call. I may not be able to work with you personally, but at least I can point you in the right direction.
How Did This Happen?
If you spend any time watching the cable news television channels, you will recognize the success strategy they employ. The political leanings of the station are unimportant because they all follow the same formula.
The station hires talking heads with impressive credentials and then encourages them to advance extremist theories. They tout their solutions as a panacea for the issues of the day leaving little room for doubt or disagreement. When their candidate makes a decision and it goes bad, the talking heads all shout the phrase: “How did this happen?”
It would be comical (and highly entertaining) if only the people actually running the government were not following the same script.
Before you start nodding your head in agreement, take a quick glance around your own law firm or circle of professional colleagues.
There are lots of lawyers out there looking for the ONE solution to help solve their client attraction problems. They reach for Search Engine Optimization, Social Media, Directory Listing/Matching Services, Pay for Placement SuperDuperElite Lawyer Awards and every shiny new object they can find, hoping against hope that this ONE thing will get them twenty new clients this month.
Eventually, when they realize they spent $20,000 on an electronic billboard that nobody reads, they blame the billboard sales guy.
You should not blame these hucksters for your lack of new clients. It’s not about them. It’s about YOU.
In reality, you need one specific thing in order to grow your law firm…
Personal responsibility.
You read that correctly. You need to take personal responsibility for the success of your firm. This means you must deeply believe that you and only you are responsible for your success.
Not your clients.
Not your website developer.
Not the economy.
The only person responsible for your success is the guy in the mirror.
It is only after you have embraced this fact that you can begin to make forward progress.
Once you have accepted your role as the architect of your future you will change your approach toward law firm strategy and business development.
Instead of looking for something to drive 100 clients to your doorstep, look for ways to improve your own approach toward client attraction.
After accepting personal responsibility for your firm’s success you can then focus on the seven basics of law firm strategy. They are:
Match your message to your target audience: Stop talking about yourself. Talk about the issues that keep your clients awake at night.
Become a thought leader: You cannot be everything to everyone. Pick one area and master it. Make sure everyone knows you own that area of law.
Create systems: An activity you must execute personally and repetitively is doomed. Develop systems for your law practice and monitor their effectiveness.
Focus on relationships: Do not sell. People want to know you, like you, and trust you before they work with you. Help them do that.
Take decisive action: If you can’t figure out which action to take, do something. Don’t wait. Get into motion.
Practice continuous improvement: This should be true of your legal education as well as of your education in marketing and business strategy. You should strive to do things better, faster and more efficiently.
Accept feedback and support from a circle of trusted advisors: Some people call this a Mastermind group. Others call it a board of advisors. You need to have a group of people you can rely on to give you unvarnished feedback about your performance.
You control your destiny. You alone are responsible for the success of your law firm. Accept this and begin to work on each of the seven fundamental behaviors listed above. Once you do, you will find that client attraction is natural and consistent.
Is Law Firm Marketing Part of Your Belief System?
“I don’t need marketing. Marketing is for sleazy lawyers who are constantly chasing a buck. I am a professional. As long as I do a good job, clients will find me.”
This quote is from a lawyer I went to lunch with last week. He has been practicing for over 20 years. He made a big deal of telling me that I should “reach out to a broader group of people” because “no self-respecting lawyer would hire a consultant to teach him about business strategy or marketing.”
About 10 minutes after he imparted his words of wisdom on me he went to pick up the lunch tab. I offered to split it. He refused. When the waiter returned and announced that his credit card had been declined, I ended up taking care of it.
You may think his comments about law firm marketing have nothing to do with his credit card issue. Maybe the bank made a mistake. Maybe the magnetic strip on the card was worn out.
Or maybe this guy was just totally full of crap.
I see that often – lawyers who believe that marketing is unprofessional or something they should avoid because of some false stigma associated with it.
These beliefs have limited this particular lawyer during his entire career. He is a terrific lawyer. One of the best in his practice area. But he never got the big, high profile cases. Never commanded big fees. And he is now “of counsel” to two separate firms because he cannot develop enough business to land a full time position or to maintain his own solo practice.
But he believes that focusing on marketing and business strategy would somehow cheapen his practice. And for this guy, that is an unshakable belief. It is part of his DNA.
I do not work with people like that. They see no value in what I do. We do not share the same belief system.
I improve the lives of lawyers. Business strategy and marketing are the tools I use to do that. I teach lawyers to use these tools. My clients make more money and have more fun while practicing law.
My belief system is different than the belief system of many lawyers.
Here are my unshakable beliefs:
I believe your law firm should support your lifestyle. If you like being home for dinner every night, you should develop the kind of practice that will allow you to do that. If you want to work with a select few clients, and charge high fees, your law firm should offer you that opportunity. Your ability to create this kind of law firm is directly related to your ability to attract clients. Client attraction involves business strategy and marketing.
I believe money follows value. If you have a reputation for providing outstanding service and you have a reputation as being an excellent lawyer and you have a reputation of giving people straight answers, you will command high fees. You get that reputation by doing excellent work and by making sure EVERYONE knows you do excellent work. That happens when you tell your story to others. That’s marketing.
I believe a lawyer grows his/her practice one relationship at a time. Those relationships must begin somewhere. Since lawyer solicitation is forbidden in most jurisdictions in the United States, clients must find you before they can enter into a relationship with you. The finding you part of being a lawyer is called marketing. The relationship development part of being a lawyer is also called marketing.
I believe that lawyers who follow the crowd make an average living and live an average life. If you follow the advice of the old guard and you just be a good lawyer and wait for the business to come rolling in, you will make an average living. And that’s fine for most people.
But if you want to be in the top one to two percent of the legal profession…if you want to attract matters that really turn you on…if you want to be home for dinner every night and …if you want to control your own destiny, you will embrace business strategy and marketing.
Most people will read this message and ignore it. Most people find it easier to adopt the beliefs of others instead of thinking for themselves. Most people never achieve the greatness they dreamed about when they started their career.
Do you want to be like most people? Or do you have some unshakable beliefs of your own?
