Marketing insights for sole practitioners

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My post on going solo brought emails from lawyers who appreciated that I didn’t varnish the truth about how hard it is.

If you are a solo or thinking of opening your own office, I recommend you read Philly attorney Jordan Rushie’s candid post about his experiences in staring his own practice. It’s interesting reading if you want to compare notes, required reading if you’re about to open that office and need to make a shopping list.

Rushie agrees that going solo is almost a crazy idea–a lot harder and more costly than some would have you believe, far more work and far less income than you can imagine. Although he acknowledges that it’s never the “right time” to go solo, if you have a choice, wait until you have the experience, money, and contacts to be able to do it right.

Rushie’s has some interesting comments about marketing for the new solo. Actually, his advice rings true for just about any attorney. He says you don’t need:

  • An expensive, fancy web site. I agree. You need a place to send people to get information about your practice and how to contact you. You can add more content and make things look nicer later on, after you’re making money.
  • A logo. Right again. Although you can get a decent one designed for a few dollars to a few hundred dollars, you’ll waste too much time deciding on the right look. You don’t need a logo, you need clients.
  • SEO Optimization”. Rushie suggests that more traffic won’t necessarily bring you good clients but that it will certainly bring you tire kickers. You can set up mechanisms to screen and filter out the low-quality inquiries and, therefore, get some decent clients, but the time (and money) you will spend are probably better spent elsewhere. Put this on the list for later.
  • A marketing/PR firm. I agree with this, too. Even if you could afford the cost and could find a firm that really knows what they’re doing (many don’t), you’re better off building relationships. Rushie says, “take potential clients to a ball game,” family, friends, and other lawyers out to dinner. No question about it, you will get far more business by leveraging your existing relationships for business and referrals than you will get hiring a marketing firm. I’m not saying you don’t need marketing information and advice. You do. But you’re better off learning it yourself so you can do it yourself.
  • Social Media or a social media consultant. Rushie says he doesn’t rely on social media to build his practice. He gets about 5% of his work from Facebook friends, “but they are usually people I knew from high school who would have called me anyway.” I know there are exceptions, but I hear something similar from a lot of attorneys. Don’t ignore social media but don’t depend on it, either. Use it as an excuse to connect or re-connect with real people because the magic happens when you talk to people or meet with people in the real world.

Rushie says not having a plan on how to grow your practice is a big mistake and of course, I concur. The good news is that the plan is a lot easier, less technically challenging, and less costly than you might think. Build your practice by building relationships.

Unfortunately, unless you know a lot of (the right) people, building relationships may take up a lot of time. Fortunately, as a new solo without a lot of clients or work keeping you busy, you have time to go meet some new people. Unless you’re too busy learning how to practice law.

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The economy sucks. What are you doing about it?

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Okay, I’m not going to go all save-the-world on you but yes, if you can do something to make things better, you should. Get involved in local politics, volunteer at a charity, help someone in need.

The best thing you can do is to grow your practice. A bigger income would mean you could do more to help others. And you know what they say about the best way to help the poor: don’t become one of them.

I saw this photo on Facebook yesterday and it touched me. In case you can’t see it, it’s the window of a dry cleaner’s with a sign that says, “If you are unemployed and need an outfit clean for an interview, we will clean it for FREE”.

Nice.

Do you think the owner will get some business from this, beyond what he does for free? Publicity? Positive word of mouth? Do you think anyone who takes him up on his offer will continue to patronize his store in the future? Do you think he will tell everyone he knows about the business owner who helped him when he really needed a break?

No question about it. Doing good is good for business.

Could you do something similar for your clients and prospects? For your community?

A discount, a free service, even some non-legal advice. Offer a free financial literacy seminar to help people get a handle on their debts. Get someone a job interview at one of your client’s companies. Offer struggling entrepreneurs two hours of free advice.

Lots of people need help right now. Unemployed, struggling military families, people losing their homes.

What can you do?

Don’t do it solely because it might bring you some business. Do it because it makes you feel good to help a fellow human being.

If we all do that, even a little, everyone will be better off. Including us.

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Would you ever sue your own client for fees owed?

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I was asked that in an email this morning and it’s a great question. How would you answer it?

I never sued a client for fees. I don’t think I would, but “would you ever?” covers a lot of territory. I suppose it’s possible. But unlikely, at least for me. Bad Karma. Better to focus on getting new clients and especially, better paying clients.

If I considered it, I would think about things like

  • How much was owed and for how long
  • Who the client is (corporate or individual, long-time client or first time client)
  • Why aren’t they paying? Are they dissatisfied with something? Having financial difficulties?
  • What is their attitude? Contrite? Jerk? Are they ignoring me or willing to talk about it?
  • Are they willing to pay anything?
  • Could I collect if I won?

I’d also think about what I might lose if I did sue. Maybe if I cut them some slack they would pay me when they could. Maybe they’ll feel guilty and send some referrals. And maybe they will solve their immediate cash flow problem and become long-time, good paying clients.

One thing is sure, if you ever do sue a client, you can be pretty sure they will never hire you again (although it does happen) or send you any referrals.

Of course the best thing to do is avoid getting into this position. Get paid in advance or at least get big retainers, auto-bill their credit card, and never let the balance get too big (i.e., bill monthly).

At the end of the day, there will always be uncollected fees. As long as it’s a small percentage of gross receipts, I consider it an acceptable cost of doing business. If it’s not a small percentage, I know I’m doing something wrong.

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Thinking of going solo? You must be crazy.

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I was reading an article that had questions you should ask yourself before you go solo. Questions like, are you self-disciplined, can you financially and emotionally handle not having a steady income, and do you like wearing many hats because in the beginning, you’ll be doing everything yourself.

If you are a sole practitioner, you may have asked yourself these types of questions before you took the plunge. If you’re thinking about going solo, you may be going through this process right now. But if you’re like a lot of attorneys today, you may not bother asking these types of questions, you’re going solo because you have no choice.

Maybe you’re fresh out of law school and you can’t find a job. Maybe you got laid off and know that the odds of replacing the job you just lost are very slim. Or maybe you just can’t stand what you’re doing and you need to be on your own.

Solo practice sounds exciting. No one to report to, make your own hours, do your own thing. In reality, sole practitioners put in longer hours and have far more pressure on them than their employed counterparts.

You have to bring in the clients and do all the work, and since most newly minted sole practitioners don’t have employees, you have to do all the ancillary chores as well. There are no benefits, paid vacations, or sick days. And when you’re the only one who shows up for work every day, it can get lonely.

A solo practice is actually a very poor business model.

And yet, many attorneys make it work.

I wasn’t one of those who was ideally suited to being a sole practitioner. I just knew I couldn’t work for anyone else.

I had worked for my father for a year out of law school and then opened my own office. I must have been crazy to do it. I had no clients, no money in the bank, and very little experience as an attorney. On top of that, I was 24 and looked 20.

From day one it was a constant struggle to survive and it was five years before I actually had anything resembling a successful practice.

I went solo because I had to. I survived because I had to.

If you’re thinking of going solo, do it because you have the experience, the clients, the financial staying power, and the temperament to run your own show. Or do it because you have no choice.

When you have no other options, you keep going. You figure it out. You do what you have to do.

One more thing. When everyone says you’re crazy for doing it, just keep thinking about how good it will feel when you prove them wrong.

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Why you don’t have to be better than your competition

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Are you are a better lawyer than your competition? Maybe, maybe not. Guess what? It doesn’t matter because most clients can’t tell the difference.

When was the last time you heard something like,

  • “Wow, great motion you wrote there!”
  • “Nobody takes a deposition like you,” or
  • “You are so much smarter than my last attorney. . .”

If you are a better lawyer, and you can prove it, great. But marketing legend, Dan Kennedy, says, “It’s better to be different than it is to be better.”

People notice different. People remember different. People are attracted to different.

You can build a strong marketing message around what makes you different from other lawyers. It could be as simple as telling your story. Your legal services may be identical to what other lawyers offer but you are unique.

Incorporate your background, your outside interests, or your personality into your marketing message. That message will show people how you are different.

There are other ways you can be different: who you represent, the added value you deliver, a performance guarantee, or alternative fee arrangements, to name a few.

Your challenge is not to prove that you are a better lawyer, but to distinguish yourself from other lawyers.

If you are better and you can prove it, great. But you don’t have to better, just different.

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Why you should consider increasing your legal fees

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Times are tough. Clients are having trouble paying their attorneys. And that’s exactly why you should consider increasing your fees.

When times are tough for your clients, you also feel the pinch. But your overhead keeps increasing, doesn’t it? At some point, some of the services you offer will no longer be profitable. “We lose money on every client but we make it up in volume,” is an old joke. But some attorneys don’t understand, the joke is on them.

What would happen if you raised the price on those services? You may lose a percentage of your clients, but the increased revenue from your remaining clients would provide a profit on every “sale”. And if you lose more clients than you expect, you will have more time to do more (higher paying) work for other clients.

True, you may not have other clients to fill the gap right now, but you will have more free time for marketing so you can bring in new clients, something you may not have time to do right now.

And you may find that you don’t lose many clients when you increase fees. Prices for everything are going up these days, so to some extent, your clients expect you to follow suit.

When an airplane loses cabin pressure we’re told to put the oxygen mask on our mouth first. Once we’re out of trouble, we can help the people next to us. It’s the same thing in a law practice. If your practice is in trouble, you won’t be around long to help your clients with their troubles.

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The Rule of 3 in Writing, Speaking, and Productivity

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Last week I did a training for a group of business partners. I created a series of slides and each one began with, “3 Things. . .”, “3 Ways. . .”, or “3 Reasons. . .”. I did it that way because it’s an effective way to convey information in writing and public speaking.

3 things are easy to follow and easy to remember.

If I gave you 142 tips for writing better blog posts, you would read or listen to the first few, perhaps nine or ten, and then you would begin to tune out. It’s too much information to process, absorb, or remember. Yes, you can go back later, but you may never do so. You can handle 3 tips, however, and later, I can give you more.

There’s too much information coming at us today. To protect ourselves, we have learned to tune out most of it. If you want to get someone’s attention and deliver an effective message, if you want them to act on your message, put that message in a smaller package.

The same is true of our task and project lists.

If your list has too many things on it, it’s overwhelming. You look at that list and wonder how you can possibly make a dent in it, let alone finish everything. It’s daunting and depressing.

In addition, when you have too many projects and tasks, there is a tendency to choose the easiest or most urgent ones, instead of the most important.

I have long lists of tasks and projects, but I don’t let them overwhelm me. I use The Rule of 3 to help me sort out the most important things and keep those in front of me until they are done. The rest, I keep out of sight until it’s time to go back and get some more.

To adopt the Rule of 3 to your tasks and project lists, choose (no more than)

  • 3 tasks for the day.
  • 3 outcomes for the week.
  • 3 goals for the year.

I’ve written before about the concept of MITs (most important tasks). Every day, I choose one to three MITs for that day. If I get those done, I can go back for more, but if I only get those done, I know I have had a productive day. I also wrote about how I use MITs in my Evernote for Lawyers eBook.

The 80/20 rule (Pareto Principle) says that in most situations 80% of results (income, clients, happiness, etc.) come from 20% of causes (efforts, clients, tasks, etc.) That means that most things aren’t important and can be safely eliminated.

Focus on the few things that are important and valuable and likely to advance you towards your most important objectives. Don’t worry about anything else.

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Attorney-to-attorney referrals video replay: learn how to “mine your practice for gold”

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This morning, I participated in a video discussion about attorney-to-attorney referrals. The featured guest was Los Angeles personal injury attorney, Lowell Steiger, who maintains a popular attorney referral Facebook group. Our host was attorney Mitch Jackson, who hosts a variety of interviews of interest to attorneys on his Spreecast Channel.

We started off discussing how attorneys can dip into their client database to find cases they can refer to other attorneys. We talked about the mechanics of making those referrals, how to protect your referral fees, and how to make sure secondary referrals from your clients come back to you.

In addition, we talked about referrals from clients and other professionals, and shared other tips for getting more referral.

Got to this page to watch the  replay of, “Mining Your Practice For Gold”. I’d love to hear your comments about the interview. Please post them on the blog.

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Why you should create an “inner circle” for your clients

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An attorney liked my post about the magic of practicing law and asked how we can “capitalize on the mystery, the magic, and the utility of the work we lawyers do?”

In other words, how can we use this mystique about what lawyers do to bring in more clients?

Yesterday’s post provides one answer: eliminate the mystique. By educating prospects and clients about what you do, they see that what you do isn’t magic at all. It’s years of study, the scars of many battles, and hard work, harder than they ever imagined. By removing the veil of mystique surrounding what you do, clients are more likely to appreciate what you do.

For most attorneys this is the best way to capitalize on the mystery of practicing law. It’s easy to do and it works. And since most attorneys don’t do this, you can easily stand out when you do.

Another way to capitalize on the mystique is to add to it. Continue to educate prospects (blog readers, newsletter subscribers, etc.) about what you do but let it be known that you have a lot more that you share only with your clients. If your public information is good, anyone who is considering you for their attorney may tip the scale in your favor to get access to your best information.

Let it be known that your clients get “private” information, not just about your practice area, but on other topics: tax savings, consumer advice, strategies for improving credit, business building ideas, and so on, supplied by you and other professionals you know and work with.

But don’t stop with information. Promote the fact that your clients get other benefits as a member of your “inner circle”. They get discounts from local merchants you have negotiated with on their behalf, access to free seminars, gift certificates, and other benefits. You might have “client only” luncheons, picnics or retreats, or other activities exclusively for your clients.

And talk about those activities. Blog about them, show pictures from them, get quotes from your clients about how much they learned or how much they enjoyed bowling and pizza night.

When someone hires another attorney, they get the work done. When they hire you, they get to belong to a private club. Members of that club get far more than the basic services any attorney provides. They get specialized information, valuable benefits, and access to fun activities.

Yes, this takes more work. But it gives you something unique that you can use to build a culture of clients who would never think of hiring anyone else.

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Why clients don’t appreciate their attorneys (and what to do about it)

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An attorney mentioned to me that clients often don’t appreciate what attorneys do for them. He said, “. . .[B]ecause they can’t see what we do or because they believe that it’s just templates and forms, [they think our] fees should be low and that we don’t really do much for our fees.”

We shouldn’t be surprised that clients feel this way. After all, we sell an intangible service, something you can’t look at or hold in your hands. We deal in ideas and paper and much of the hard work goes on in our brains.

And attorneys are expensive. When the client earns $30 an hour and you’re billing $300 an hour, or when you get $3,000.00 for “a few letters and phone calls,” you can see why they don’t appreciate what we do.

A detailed accounting of your work helps them see how much effort you put into their case or matter. But this can backfire if they don’t understand why you had to do what you did.

The solution is to teach your prospects and clients as much as possible about what you do. Educate them about the law and procedure. Teach them about their options, the risks and the contingencies. Show them the process and the paperwork.

The more they know, the more they will appreciate what you do for them.

Write articles and blog posts. Tell war stories that illustrate what can go wrong. Provide interviews, Q and A’s, and FAQ’s.

Record videos that walk them through the documents in a typical file or a pile of depo transcripts, tabbed and notated. Give them copies of the full opinions you quoted in your motion, highlighted and with your notes in the margins. Give them copies of everything that comes into, or out of your file.

And explain everything. What is obvious to you is not obvious to them. What you do every day is something they’ve never seen before.

Tell them why you choose A instead of B. Explain why you used to do C (which is what other attorneys do) and why you no longer do it that way.

Don’t hold back. Teach them enough so that they could do all of it, or parts of it, themselves. They won’t even want to try and they will begin to appreciate how hard you job really is.

They won’t understand everything and they don’t have to. They simply need to see that what you do is a lot more than they thought it was.

Educating prospects and clients is also one of your most potent marketing strategies.

When you teach people about what you do, and other attorneys don’t, you have an advantage. All of that information positions you as knowledgeable and experienced. It also positions you as generous. “If he gives away all of this information free, I can only imagine how much he does for his paying clients!”

Educate the market. Provide lots of information. Teach them what they need to know about their legal matter and about what you do. More often than not, they’ll choose you as their attorney and instead of questioning your fees they’ll thank their lucky stars you agreed to represent them.

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