Archives for August 2007

How to build your prospect list: just ask three questions

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This Labor Day weekend, many will attend parties and meet new people. Social (or business) gatherings are an opportunity to expand your network of contacts, all of whom could be potential clients or referral sources.

If you have something planned this Labor Day weekend, before you go, I know you’ll check your wallet or purse, making sure you have plenty of business cards on hand. But if you’re like most people, the opportunity to connect with new people will come and go. You will neither pass out cards nor collect any.

You’ll meet people and politely discuss sports or the weather or how tasty the hamburgers are, but you won’t get their contact information and they won’t get yours.

But you don’t have to squander this opportunity. All you have to do is ask three simple questions:

First, introduce yourself and ask for their name. "I’m David, what’s your name."

Easy enough. Now you know their name and they know yours. Use their name a few times so you don’t forget it three seconds later, as we so often do.

Second, ask them what they do. 

You can first ask how they know the host or how they are otherwise connected with the event, but then ask them what they do for a living.

"So, what do you do?"

Also easy.

Ask a follow up question or two and let them tell you all about what they do. When they are done, most people will ask you what YOU do. On the rare occasion when they don’t, just go on to the third question.

Third, ask for their card. "Do you have a card?"

When they give you their card, give them yours.

Voila, instant contact.

If they don’t have a card with them (and many won’t, especially at a social function), give them one of yours and ask them to write their information on the back.

"Write your contact information here." At least get their email address or web site.

It will help if you offer them a reason you are asking. If appropriate, tell them you might run into someone who could use their products or services. Or, simply tell them you would like to stay in touch.

Any reason will do.

Your objective at any social or business function is not to pass out your card (although that’s good, too), it is to find out something about the people you meet and capture their contact information so you can stay in touch with them.

To accomplish that, all you need to do is ask three simple questions.

Have a great weekend!

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What did YOU learn about marketing in law school?

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"91% of Lawyers Unhappy about Lack of Marketing Training in Law School," says the headline of a report of a recent poll. "We must have struck a nerve because the responses were overwhelming and many lawyers even took the time to make pointed comments," said Daniel Guttman, MBA, principal in the firm that conducted the poll.

Is anyone surprised by this?

When I went to law school over thirty years ago, there wasn’t a single class on anything having to do with the "real world" of being a practicing lawyer. Nothing about how to open an office, hire employees, or set up a filing system. No guidance on calendaring or conflict checking, file retention or bookkeeping. And we certainly weren’t taught anything about marketing.

Is it any different today?

Did you learn anything about marketing in law school? Did they teach you how to bring in clients or how to keep them happy ("client relations") so they would come back and refer their friends?

I wrote an article on this subject: What I learned about marketing in law school, detailing my experiences. Now ‘d like to hear yours.

And while we’re comparing notes, tell me if your state (province, jurisdiction) allows you to earn continuing legal education credits for classes in marketing. Last time I checked, most jurisdictions allow credit for ethics and certain law office management topics, but not marketing.

I taught myself how to market my services. I had to, to survive. At the time, there were very few resources available to attorneys who wanted to learn marketing and the practical side of running a law practice. There was Foonberg’s book and little else. (That’s why I wrote Referral Magic.)

In 1977, Bates vs. Arizona made it possible for attorneys to advertise, officially blessing the notion that the law is a business as well as a profession and suggesting that the "business of law" might be something we want attorneys to know. Unfortunately, I don’t think much has changed since then, and this poll says most attorneys agree. Here’s how the author summed up the results:

  • 41% don’t get good marketing results, don’t know how to market or don’t bother to do any marketing at all.
  • 37% manage to just generate enough business for themselves.
  • Only 22% of respondents consider themselves rainmakers

The article, along with lawyer comments and a link to the complete poll results can be found on this page.

 

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Do you have arrangements or relationships?

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I have an arrangement with my dry cleaner. I bring in clothing, he cleans them, I pay. The arrangement works for both of us. We each know what is expected of us, we do it, and we both benefit.

In contrast, I have a relationship with certain business associates. Like my arrangement with my dry cleaner, my business associates and I know (generally) what is expected of us and we all mutually benefit from our relationship. 

But arrangements and relationships are different.

Arrangements are tidy and business-like. The parties know what to do, it’s understood that they will do it, and it usually gets done without a hitch.

Relationships are untidy and time-consuming. There is an emotional element to them. The unexpected often happens, and the consequences can be seriously detrimental.

Relationships are deeper than arrangements, and stronger. Relationships are the foundation for building a strong professional practice. Arrangements come and go, but relationships can last a lifetime.

Do you have arrangements or relationships with your clients and professional contacts? Surely you have both. But unless you have a core group of relationships, your future success is on shaky ground.

If your clients hire you because you do good work and only because of that, your future business with them is as much "at will" as the business I give my dry cleaner. It would not take much to woo me away to another dry cleaner. One screw-up might be all it takes.

Who refers you business? Do you have arrangements or relationships with them?

Relationships are equity. If you work hard for 5-25 years and all you have to show for it are a multitude of arrangements,  then every year you are starting over, and your income is as unpredictable as it was your first year.

You don’t have to develop relationships with everyone. You couldn’t even if you wanted to. Relationships are messy and emotional and require dedication and personal time to develop. You only have time to develop a few relationships, but a few is all you need.

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Three simple ways to increase your income

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Getting more clients through networking, advertising, writing articles, speaking, and so forth, is the obvious way to grow your law practice, and your income. But there are other ways.

There are three things you can do to increase your income that require no time or money, only a little creativity.

The best part is that if you do ALL THREE THINGS, your practice will grow not arithmetically but. . .

. . .geometrically.

Interested?

Okay, here are the three things:

1. Enlarge the size of your average engagement
2. Encourage your clients to hire you more often
3. Get your existing clients to refer other clients

You can enlarge the size of your average engagement by offering a "deluxe" version of your services or by packaging your services in ways that offer clients incentives to hire you to do more now.

You can encourage clients to hire you more often by offering "maintenence contracts" or other incentives to use you more often, or by simply staying in touch with clients and reminding them of the need for your services and the benefits thereof.

You can get your clients to refer other clients by asking for referrals or asking them for the names of their friends and colleagues to whom you can send valuable free information, i.e., reports, newsletters, etc., or special offers, or to simply inform them about your services.

You invested time and money in acquiring your clients. Work smart and maximize your profits with bigger engagements and more repeat business and referrals.

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How to use your business card to get referrals

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When you hand out your business card, always hand out two. "I’m giving you two cards, one for you and one to give to someone who might need my services."

This causes them to think about who they know who might need your services. They might think of someone immediately and tell you. They might ask for additional cards, because they know several people to give them to.

It also plants the seed in their mind that they should be on the lookout for referrals.

Simple, but it works.

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What do prospective clients want to know about you?

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An article in my local newspaper a few years ago asked, "What do clients want to know before choosing a business attorney?" The author, an attorney, says to consider these factors:

  • Does the attorney guarantee to return telephone calls the same day?
  • How are telephone consultations billed?
  • How strongly does the attorney support alternatives to traditional litigation, such as arbitration, to reduce the time and costs of resolving disputes?
  • How much experience does the attorney have with business clients?
  • Can the attorney provide referrals and contacts with highly skilled professionals in different industries who can help your company grow?

First, how would you answer these inquiries if a prospective client asked you? Write out your answers and read them as a prospective client would. How do they make you feel? Is there anything you can improve on?

Second, why not create a letter or other document that outlines your policies and commitment, and give it to clients and prospects BEFORE they ask?

Third, notice the last factor–being able to deliver MORE than your core services. The most successful attorneys are not merely draftsmen, advisors, or litigators. They are "partners" in their clients’ success.

Be prepared to help your clients in ways that go beyond your legal services. Take the time to develop contacts in your clients’ fields, so you can make referrals to people who can help them achive their objectives. (If you have a consumer-related practice, be prepared to refer them to building contractors, real estate agents, and insurance professionals, et. al.)

Continually look for ways to provide clients with information and referrals and other assistance that can improve their lives and livelihoods.

If you don’t, don’t say I didn’t warn you when they go looking for someone who does.

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“Could you take anything off your fee?”

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An estate planner who does a lot of seminars asked about discounting fees, a subject that comes up quite frequently. His question and my response:

Q: About 20% of prospective clients ask if I can "take anything off" my fee. I have positioned myself as being a specialist who charges a bit more. I usually do take a few hundred dollars off so I don’t lose the client but I wonder is that smart or am I devaluing my services?

A: The answer is, simply, don’t do it. Most clients don’t shop fees and the ones who do you don’t need. Especially since you (correctly) position yourself as being worth more. You devalue your services and professionalism when you say yes to a request for a discount. Word will spread and before you know it, you’ll have people say, "I heard you gave Joe Jones a $300 discount, could I get that, too?" Before you know it, you’ll be giving everyone a discount, and then where are you?
 
At times, it’s okay to offer a discount, such as when you tie it to a "good cause" or as a closing tool at the end of a seminar, but NOT when they ask. Can you imagine asking your doctor for a discount?

The proper way to handle someone who asks for a lower fee is to let them know that if they can’t afford you, you would be happy to refer them to a lawyer who charges less. Watch, not one in 20 will go. But even if they all did (all 20% who ask), that’s okay, those are the ones you want to let go. Lawyers should continually prune the lowest 20% of their client base in favor of upgrading the quality of their clients and the fees they charge them.

Alternately, see if there are any services you could offer them "within their budget". If your complete package has A, B, and C components, you could offer them A and B for a lower fee; perhaps they can get C later.

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What to put in a thank you letter

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Q: What are the main points to get across in a thank you letter to a client? Is it appropriate to add that I’m working to build my practice and referrals are appreciated?

A: It’s not wrong to mention referrals in a thank you letter, but I think it’s better when a ‘thank you’ is just that and nothing more. Let the client know that you appreciate him or her and just wanted to say so. It will mean more to them that way, don’t you think?

I also recommend that the ‘letter’ be a ‘note’ — hand written on note cards. It’s more personal that way and people appreciate that you took the time to write them a personal note. There’s less room on a thank you card, too, so you can be done with just a few sentences, whereas your letterhead has a lot of space to fill.

The note should say:

1. Thank you; I appreciate you; I am glad to know you
2. Reference something personal about them or their case
3. Call me if you have questions about anything
4. Thanks again

Sign the note, "Sincerely," or "Warmly," followed by your signature.

That’s not the only way to write a thank you, but it works. In just three or four lines, you show the client that he is not just a name on a file to you, you really do appreciate him.

Hand written notes are an extremely potent form of communication for another reason: nobody sends them. So when you do, you will really stand out in the mind of the recipient. You didn’t send a form letter, you didn’t email, you took some of your precious time to pen a personal note and put a stamp on it.

One attorney started doing this and told me his secretary made him stop. Apparently, they were getting so many calls to say "thank you" for his "thank you," she didn’t have time to do her work. But it was a nice problem to have (and they didn’t stop) because they also got a lot of referrals.

Try it, and watch what happens.

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Before you set any goals. . .

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Goal setting is a critical component to success in anything, and that includes a successful life. Life is a journey and without a destination, all you’re doing is wandering.

Before you set goals–big, lifetime goals, and small, “here’s what I want to accomplish tomorrow” goals–before you get specific about what and how much and when and who, I want to encourage you to spend some time doing something else.

I want you to dream.

I’ll bet it’s been a long time since you did any dreaming. You’re so busy making a living you don’t have time to do anything else. But what if, in your zeal to climb the ladder of success you overlooked the fact that it was leaning against the wrong wall?

It’s not too late. You can dream again–and you should.

Mark Twain said, “Twenty years from now you will more disappointed by the things that you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Dream. Discover.”

Too often, people plan their lives logically. They assess where they are and look forward and the path they see before them is the one they take.

“Well, I have these skills and that degree and these are my assets, and it makes perfect sense for me to. . . blah blah blah.” Before you know it, twenty years have gone by and while they may be successful, too often, they aren’t happy.

And happiness, my friend, is why you were put here on Earth.

Put logic aside for a moment and get in touch with your emotions. What makes your heart sing? What did you once want so much it makes you cry thinking about it? What would you be doing right now if you had all the money you could possibly spend, perfect health, and unlimited time?

When you have answered these questions–truthfully–come back and we’ll talk.

Harold Thurman Whitman said, “Don’t ask yourself what the world needs, ask yourself what makes you come alive, and then go do it. Because what the world needs is people who have come alive.”

I like the way an unknown writer put it: “Life’s journey is not to arrive at the grave safely in a well-preserved body, but rather to skid in sideways, totally worn out, shouting, ‘Holy sh**… what a ride!'”

David Ward
“Be a mentor with a servant’s heart!”

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How I (finally) got organized

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I‘m in love!

Well, okay, when you’re talking about a piece of software, that might be a bit strong. But, I can’t help it…

I really am IN LOVE!

The software I’m talking about is Info Select. It’s been around for twenty years and I can’t believe I just found out about it.

Info Select is an information management system that allows you to organize EVERYTHING: notes, contact info, ideas, emails, phone logs, client data, calendars, presentations, research…

EVERYTHING!

I don’t use Outlook anymore. I use Word only occasionally. I’m getting rid of mounds of loose scraps, notes, reminders, post-its that have adorned my office for years. I can see my desk again!

I can now find anything I’m looking for by using Info Select’s robust search capability.

Here’s what one lawyer says about a previous version:
http://www.stepup.com.au/product/isw6/lawyer.htm

More info:
http://www.innovationtools.com/Tools/SoftwareDetails.asp?a=68

Here’s the company web site: http://miclog.com. They offer a thirty-day free trial. Careful, it’s addicting!

If you use Info Select, please share your experiences. If you haven’t, check it out!

David Ward
“Be a mentor with a servant’s heart!”

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