The problem with most consumer law practices

January 25, 2012 by
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Most consumer oriented law practices have a big problem. Lawyers who practice family law, bankruptcy, criminal defense, estate planning, personal injury, real estate, and other areas, have a preponderance of “one time” clients. Once the initial case or engagement is completed, the attorney gets no additional revenue, or at best, very little.

The problem is worsening. It costs more to bring in a new client today, and overhead and manpower expenses to service those clients are also higher. But clients aren’t willing to pay more, and they don’t have to. With more lawyers competing for the same clients, clients have more options.

I just spoke to an attorney who is spending $13,000 a month on yellow pages. The good news is that her ads bring in a lot of new clients. The bad news is that she loses money on every one.

The solution to this problem is for attorneys to develop their “back end”–services and other profitable initiatives they can offer their clients after the initial engagement.

In any business, most of the profits are made on the back end. There is a cost to acquire a new customer, and while it is hoped that this can be done at a profit, it’s not required. So long as the business can make enough profit after the initial sale, if the back end is big enough, most businesses are willing to lose money on the front end.

How can an attorney develop a back end?

Some attorneys are branching out into new practice areas. So the bankruptcy lawyer who sees a downturn in new clients starts offering family law or estate planning services. The problem with this is that it makes it much harder to get referrals from family law and estate planning attorneys with whom you are now competing. It’s also more difficult to market a general practice than a specialized one.

Instead of taking on new practice areas, here are two things an attorney can do to develop a back end:

  1. Expand and systematize referrals. Focus on getting more referrals, better referrals, and more frequent referrals from your clients. In this way, each client you bring in on the front end represents more profits on the back end. If you spend $1000 to bring in a new client who pays you $1000 on the front end, but you earn an average of $3000 from their back-end referrals, you can afford to bring in as many “break even” clients as possible. You can even lose money on the front end.
  2. Market the services of other lawyers to your clients. Instead of you taking on a new practice area, associate with other attorneys who are specialists in those areas and offer their services to your clients in return for a share of the fees (if ethically permissible) or in exchange for marketing your services to their clients. (You aren’t limited to working with other attorneys; you can also market the services of other professionals and businesses.)

A key number every attorney must know is the “lifetime value” of a new client. This includes the value of their repeat business, their referrals, and other revenue derived as a result of having them on your list. Take some time to determine this number and then work on increasing it.

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Filed Under: Advertising, Attorneys fees, Fees and Billing, Increase your income, Marketing legal services, Specializing Tagged With: , , , , , , , , , , , , , , , , , , ,

Why attorneys need to drink more booze

January 24, 2012 by
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My wife once told me I needed to drink more alcohol. She said I was too uptight and needed to loosen up.

She wasn’t serious (about the alcohol part) but I had to admit she had a point. Attorneys can be pretty serious folks at times.

You and I know a lot of attorneys. As a group, what are they like? Most of the ones I know are intelligent, hard working, responsible, and professional. They have families and hobbies and a life outside of the office. They are successful and well-rounded.

At the same time, most of the attorneys I know are very analytical and a bit uptight.

Like me.

No matter what kind of law we practice, we are all in the people business. People hire (and employ) lawyers they like and if you’re not likable, you’re making things harder on yourself.

So, if you’re a stick in the mud, or have a stick where the sun doesn’t shine, if people don’t “get” you, if you are completely unable to win friends and influence people, you might want to work on that.

I use humor to overcome my natural tendencies. I like to make people laugh. It’s a great ice breaker and helps when I’m speaking to a group.

If you need to loosen up, consider doing something different:

  • Acting classes
  • Public speaking classes
  • Stand up comedy
  • Music/art
  • Exercise
  • Sky diving/race car driving/fire walking
  • Personal development courses
  • Therapy

If you want more people to like you, you don’t have to become the life of the party. You do need to have that stick removed.

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Filed Under: Career satisfaction, Personal development, success Tagged With: , , , , , , ,

Apps for lawyers: do you really need one?

January 23, 2012 by
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If you have a smart phone, the chances are you’ve seen more than a few law firm apps coming through the app store. A lot of law firms are getting them and you may be tempted to do the same. With all the smart phones out there, it’s got to bring you some business, right? Hey, even one new client will pay for the app.

Before you get out your checkbook, there are some things you should consider.

Most apps fall into two categories. The first is of the “digital brochure” variety. This may do a great job of showing your firm’s capabilities but you’re not going to bring in much business with an app that nobody downloads and if a brochure is all you’ve got, not many will.

The second category of app falls into the utilitarian category: it does something useful. Personal injury lawyers seem to have a preponderance of this kind of app, of the “what to do in case of accident” variety. There are places to fill in information about the other parties, witnesses, insurance information, and also some pointers on what to do.

This sounds good but think about it: when you’re in an accident, nervous, waiting for the police or ambulance or tow truck, will you really want to launch an app and start typing with your thumbs?

Some of these apps have audio recorders, but still, in the heat of the moment, most people aren’t going to use it.

“Ah, but the point isn’t that they use it, it’s that they have it so that when they get home, they’ll remember they have it, look through it, and call us.”

This is true, but you don’t need an app for that. An old fashioned booklet in the glove box will accomplish the same thing. A booklet is a lot cheaper (free if the client prints it themselves from your pdf) and a booklet is something people might actually use.

Another form of utilitarian app is one that contains information. It might be a summary of bankruptcy laws, divorce options, or tips for protecting your small business. If a prospective client is browsing through the app store and sees an app that promises to inform him about something that’s currently on his mind, this could get his attention. The big question is, “will he see it?”

When an app is released, it appears in the list of new apps for a few days, and then it’s no longer “new”. Unless an app is extremely popular, very unlikely for a law firm app., the odds are that nobody will ever see it again in the app store.

What good is an app that nobody knows about?

It will be up to you to promote your app via your web site, newsletter, and social media. If it’s good, people will download it and promote it. But you can accomplish the same thing without an app. All you need to do is put your information into a report or ebook.

Can an app bring in some business? Yes, it can. But before you rush into having one made, lest you be “left behind” by your competition, remember that getting the app made is just the beginning. If you’re not willing to invest in promoting the app, don’t bother getting one. If you are prepared to promote your app, you might simply write a report and save yourself several thousand dollars.

Does your law firm have an app? Has it brought in any business? Please share your experiences in the comments.

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Filed Under: Advertising, Marketing legal services, Online Marketing, Referrals, Social media marketing, Writing Tagged With: , , , , , , , , , , , , , , , , ,

The paperless law office: what’s the big deal?

January 20, 2012 by
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I like the idea of going paperless. I think most people do. Millions of people have opted for paperless billing and banking, reducing the paper and clutter in their lives and saving on postage and fees. Millions more are investing in scanners to eliminate paper that resides in their closets and file cabinets.

Lawyers in particular, who have more than their fair share of paper, are coming to understand the benefits of a paperless law practice:

  • Saving money. A paperless practice saves the not inconsiderable costs of paper, copy machines, toner, file cabinets, office space, and storage space, not to mention the wages of staff members responsible for creating, storing, and retrieving all that paper
  • Increasing productivity. Digital information can be retrieved, and therefore, utilized, much more readily than paper files. And having information in the cloud means it is available to you anywhere–from home, office, the courtroom, in a meeting.

Converting a law practice to paperless, or even “paper-lite,” is not a simple task for most lawyers. First, there is the process of converting thousands of closed files to their digital equivalents. Then there is the issue of working with current files and open cases using a laptop or iPad instead of a manila folder. How do you get the information in, and how do you get it out? All of this has to be thought through before the first page is scanned. Finally, lawyers must consider the security of client data, both on their hard drive and in “the cloud”.

The larger your practice, the more complicated these issues become. A big practice will probably hire a consulting firm to advise them on the process of going paperless and selecting the tools for doing so. A smaller practice must address the same issues as the big firm but they have more options, many of which are free or low cost.

I wrote about “going paperless” and “data security” in my new eBook, Evernote for Lawyers: A Guide for Getting Organized & Increasing Productivity. If you want to eliminate or reduce the use of paper in your law practice, Evernote is a great tool for doing so. If you are a small firm, it could be all you need.

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Filed Under: Law office management, Legal industry, Productivity Tagged With: , , , , , , , , , , , , , , , , , , ,

Attorneys: An alternative to free consultations that might work even better

January 19, 2012 by
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Yesterday, I posted about the problem with free consultations and what to do about it. Even though people like to get things free, if prospective clients don’t see the value in your offer they either won’t call for an appointment or if they do, they won’t keep it.

There’s another way to get prospects to see the value of your offer and that’s what I want to talk about today.

Instead of offering a free consultation, consider offering a “introductory great deal”.

The popularity of Groupon, Living Social, and other “bargain” apps prove what everyone already knows, people love getting a bargain. A $450 weekend spa package for just $77, a $40 dinner for two for $20, brings in a lot of new customers to the businesses that offer them.

Why can’t you offer something similar?

Bundle up your free consultation package as attractively as you can, put a “regular” price on it, and offer it at a special “introductory” (bargain) price.

If your “free consultation” is normally a “$250 value,” for example, and you offer it for a nominal $39, you might get a lot of takers.

You still have to show prospects the benefits of everything they get. You still have to “sell” your offer, just as you do when it’s free, and probably more so.

Give your package a name, something that implies enhanced value. For example, “Comprehensive asset protection planning session” or “Corporate risk evaluation” or “Pre-Divorce diagnostic and strategy plan.”

And make sure to include the dollar amount your package is worth. When a prospect sees that they can get $250 in value for just $39, their shopping instincts often kick in and they want to buy. Add a “deadline date” when your offer expires and fear of loss will get more prospects off the fence and into your office.

Charging a fee will usually depress response. But not always. The right offer, in the right market, could actually increase response. Charging a fee, however nominal, will almost certainly increase qualified response, which means you will have fewer “shoppers” and more “buyers”. And your no-show rate will plummet, especially if you collect the initial fee at the time the appointment is booked.

As with everything in marketing, you won’t know whether this will work for your practice and your market until you test it. Put it out there, see what happens, track your numbers.

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Filed Under: Marketing legal services Tagged With: , , , ,

The problem with free consultations (and my offer to you)

January 18, 2012 by
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People prefer to hire lawyers they know, like, and trust. One of the best ways to get prospects to know, like, and trust you is to give them a sample of what you do.

To some extent, that’s what you do when you provide free information. Blog posts, reports, articles, seminars, and so on, give prospective clients an insight into what you have done for others, suggesting that you can do the same for them. They can see you know what you’re doing and get a sense for what it would be like to work with you. Through your words, they come to know, like, and trust you, bringing them one step closer to hiring you.

And yet, of all the people who read or listen to your information, only a small percentage actually take it upon themselves to call and book an appointment. There’s too big of a gap between “reader” and “client”. One way to bridge that gap is by offering a free consultation.

Free consultations allow you to initiate a personal relationship with a prospect and provide them with “customized” information. It’s one thing to provide generic information in your practice area, quite another to interpret that information in the context of a prospect’s particular problem. Prospects who read your information may like what you say and the stories you share but this will never take the place of actually speaking with you.

Done right, free consultations can bring in a lot of business. The problem with free consultations, especially in practice areas where they are common, is that they are usually not done right.

“Free” is one of the most powerful words in the dictionary, but just because something is free doesn’t mean anyone will want it. Many prospects today, seeing that most attorneys in your field offer free consultations, don’t see the value in yours. In fact, many prospects see no value in a consultation, believing it is just an excuse to get them into your office so you can do a sales pitch for your services. Unfortunately, for many attorneys, that’s exactly what it is.

One solution is to include a detailed description of everything the prospect gets as part of the free consultation. Tell them what they will learn, what you will explain, what you will do for them, and what you will give them (e.g., reports, checklists, case evaluation, issue summary, etc.).

Also tell them how they will benefit. Yes, you evaluate their situation and explain their options, but so what? What does that mean to them? It means they will be able to make better decisions about what to do, making it more likely that they will resolve their problem or achieve their objective. It means they will save time or money. It means they will be one step closer to eliminating their anxiety and worry and sleepless nights.

In other words, you can’t simply say the magic words “free consultation” and expect people to come running. You have to “sell” it.

Let me give you an example with my own services.

Starting today, until further notice, I’m offering free consultations for my consulting and coaching services. These will be on a first come, first served basis since I can only do so many of these and I expect to get a lot of response.

During our consultation we’ll talk about where you are and where you would like to be in your career. I’ll ask questions and I will give you my advice. I won’t mince words. I’ll tell you straight out what I think you should do. As a result, you’ll know exactly what to do to bring in more clients, increase your income, or otherwise improve your current situation.

In addition, you’ll be able to ask me questions. You can ask about marketing, cash flow, productivity, goals, or anything else that’s on your mind.

As you know, I’m not somebody who simply read a few marketing books and set up a web site. I practiced law for more than twenty years and learned (the hard way) what it takes to bring in good, paying clients. I know what works and what doesn’t, what works quickly and what doesn’t, because I’ve tried it all. I’ve been in your shoes. I know what it’s like to struggle to make rent. I know what it’s like to question whether you made the right choice of career or specialty or market. I also know what it’s like when the business is coming in faster than you can handle.

I have seventeen years experience consulting with attorneys and helping them to get more clients and increase their income. But then if you’re a regular reader of this blog, you know most of this. That’s why you read it.

These consultations are free and there is no obligation to you whatsoever. Sure, I hope that after the consultation you will want to hire me or buy something from me, but that’s not important. What’s important is that I give you so much value during our consultation, so many ideas for taking your practice to a much higher level, that you can’t wait to get started. I know that if I deliver that to you, we’ll do business some day.

Because I expect to get a lot of response to this offer, I must limit these consultations to 15 minutes. Therefore, after we schedule your consultation, please email me as much information as possible about your current situation. Tell me your problems, obstacles, questions and objectives, so that when we talk, we can get right to the solutions.

Fair enough?

If you’re interested in setting up a consultation, please email info[at]attorneymarketing.com and put “consultation 15” in the subject. Give me three dates and times when you will be available for 15 minutes and the best telephone number to reach you. (I’m in California, so mind the time zone.) I’ll email back and we’ll confirm the date and time.

I look forward to helping you make 2012 your best year ever.

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Filed Under: Career satisfaction, Coaching, Increase your income, Marketing legal services, Marketing Plan, success Tagged With: , , , , , , , , , , , , , , , , , , ,

When you’re not the best lawyer in town

January 16, 2012 by
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So you’re not the best attorney in your field. You didn’t finish first in your class. You’re not the best presenter, writer, or negotiator.

You’re just you, someone who loves being a lawyer and helping people.

And you know what? That’s enough.

You don’t have to be the best to have a very satisfying and rewarding career. In the long run, your passion for what you do will attract everything you need. You can learn what you need to know and get better at what you do.

But you must be willing to grow.

Unfortunately, many lawyers stop growing the day they receive their license. The got school “out of the way” and then switched gears to focus on building a career.

Oh they go through the motions of continuing their education but mostly because they have to, not because they want to. Soon they find themselves in a rut, a career rut where billable hours and overhead and moving up the ladder are job one. In time, many such lawyers find themselves dissatisfied with their careers, but often they don’t know why.

It’s because they’ve stopped growing.

Charles Darwin said, “It is not the strongest of the species that survives, nor the most intelligent. It is the one that is most adaptable to change.” Lawyers who stop learning stop adapting to the changes around them. If they’re not careful, they’ll find themselves on the endangered species list.

Learning and growth aren’t limited to the law, however. There is much more to being a lawyer. You need to learn marketing. You need to understand human psychology. You should be able to read a balance sheet. And much more.

I heard someone say (on LinkedIn, I think) that it’s no longer acceptable for an attorney to say they are “computer illiterate”. Yet many attorneys are functionally so. Yes, you can hire people to do what you don’t want to do, but in the wired world we live in today, someone who refuses to learn some basic computer skills might as well waive a white flag and call it a day.

Never stop learning. Never stop growing. Never stop adapting to the changes around you. That’s how you will survive in this jungle.

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Filed Under: Career satisfaction, Continuing Legal Education, Inspiration, Personal development Tagged With: , , , , , , , , , , , , , , , , , , ,

How to create a more successful law practice

January 13, 2012 by
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I read another thoughtful post by Leo Babauta on the Zen Habits blog about the subject of practice. No, he wasn’t writing about a law practice, but I thought his message of “practicing” to effect improvement applied as much to a law practice as to anything else. Plus, I like the play on words.

We are what we repeatedly do. We are the sum of our habits. If we want to change who we are, we have to change what we do.

Change begins with awareness. If you didn’t say “thank you” to the new client who just hired you (you’d be surprised at how many attorneys don’t), reading this sentence made you aware that you didn’t and also aware of how important it is. (Your mother will tell you, it’s one of the most important things you can do.) If you usually say thank you, but for some reason didn’t do it last time, there is room for improvement. The standard of excellence isn’t saying thank you most of the time, but every time.

Now that you are aware, make a decision to change. Then, practice your new habit. With something as simple as saying thank you, you might only need to be reminded. Write it down on your intake sheet, use a post it note, put it on your calendar, whatever you need to do to remember to always say thank you.

Also be aware of what happens when you get it right. Watch your new client’s face as you look him in the eye, shake his hand, and sincerely tell him how much you appreciate having him as a client. Tell him you’ll take good care of him. Let the handshake linger a few seconds longer. Give him your full attention. Say thank you, and mean it. You’ll see some of the tension leave his face as he comes to realize that you really do care.

Your law practice is a collection of habits. What you (and your staff) regularly do and how well you do it defines you, distinguishes you from other lawyers, and plays a big role in determining your success. There are big habits and many small ones and they all matter.

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Filed Under: Client loyalty, Client relations, Image, Marketing legal services, Personal development, success Tagged With: , , , , , , , , , , , , , ,

A habit that will make you rich (hint: it’s all in your mind)

January 12, 2012 by
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One of the “Eight Secrets to Getting More Done in 2012,” in this Forbes magazine article struck a nerve with me because it is something I have struggled with. If you have ever been accused of being “overly analytical,” “a perfectionist,” a “procrastinator,” or just somebody who has trouble making up their mind, we’re bred from the same stock.

Yes, being an attorney means being careful, not jumping to conclusions, and not making rash decisions. We carefully weigh the options and we go out of our way to avoid risk. It goes with the job description.

It’s also why attorneys usually make poor business people. Entrepreneurs see a vision of success and act on it; lawyers see what could wrong and either say no or mull it over so long the opportunity passes them by.

But according to Napoleon Hill, author of Think and Grow Rich, the ability to make quick decisions is the hallmark of rich people:

Analysis of several hundred people who had accumulated fortunes well beyond the million dollar mark, disclosed the fact that every one of them had the habit of reaching decisions promptly, and changing these decisions slowly, if and when they were changed at all. People who fail to accumulate money, without exception, have the habit of reaching decisions, if at all, very slowly, and of changing these decisions quickly and often.

Marty Zwilling, founder and CEO of Startup Professionals understands this. It was his contribution to the Forbes article that caught my eye:

My key to productivity is simply “make a decision.” Even a bad decision is recoverable, and better than no decision, since it gets the issue off your plate and moving. Making no decision bottlenecks your work, and causes things to happen to you, rather than by you.

But if the ability to make decisions quickly is a habit of the rich and attorneys are prone to doing the opposite, why are there so many rich attorneys?

Two reasons, I think. First, we’re around a lot of successful people and get in front of a lot of good opportunities. The odds are in our favor that we will be “in the right place at the right time”. Second, attorneys are intelligent people and tend to make “good decisions,” albeit not quickly. If we could combine the two and make “good decisions quickly,” I think there would be many more rich lawyers.

Fortunately, making decisions quickly is a habit and habits can be developed. You do it once, the world doesn’t end, you do it again.

Wash, rinse, repeat.

Start with little decisions, “which movie to see,” or “which topic to write about today.” Give yourself five minutes to decide. Use a timer. Use a screen saver message or post-it to remind you to “Decide Now!” And do it every day.

If you mindfully make quick decisions every day, making quick decisions will soon become a habit. Eventually, you’ll be able to make quick decisions about important matters and that’s when you will see more significant results.

But don’t forget the other side of the equation. Once you’ve decided, you must stick with your decision. Practice not changing your mind. Yes, you’ll make mistakes, but as Zwilling says, “even a bad decision is recoverable”. Isn’t that why God invented E and O coverage?

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Filed Under: Inspiration, Personal development, success, Wealth Tagged With: , , , , , , , , , , , , , , , , , , ,
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