Why do lawyers go out of business so infrequently?

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According to The Bureau of Labor Statistics, 70% of business owners fail by their 10th year in business. In some industries, the failure rate is much higher.

So why do lawyers and law firms fail much less often?

Lawyers close shop because they don’t like the work or they find something else they’d like to do, but not so many leave because they couldn’t make it. Even with plenty of competition and tough times, lawyers can hang in there if they want to.

But why?

Many people start a business who have never run a business before. They may be good at making widgets or installing water heaters, but as Michael Gerber points out in The E-Myth, those skills don’t necessarily qualify someone to start and run a business.

But isn’t that also true for lawyers?

Just because we know how to prepare a lease or take a deposition doesn’t mean we’re qualified to run a law practice.

In addition, lawyers are far more risk adverse and often lack “people skills” that are the driving force of many businesses.

So why do we have better numbers?

Overhead and margin.

Lawyers have no inventory, lower rent, lower debt service, and a lower cost of doing business. It takes a lot less income to keep the doors of a law office open compared to many other businesses.

In addition, most businesses have smaller margins compared to a law practice. A business might markup their products by a few percentage points, requiring a lot of sales to make a profit, whereas a lawyer might need only one or two cases or clients a month to do the same thing.

The bottom line, therefore, is the bottom line. Lawyers don’t go out of business as often because they have staying power.

Lower expenses and higher margins give us time to learn how to build and manage a practice. We can survive lean times and growing pains and stick around long enough to become successful.

But don’t take anything for granted.

There are still lean times. Competition that wants to eat our lunch. A lot to learn and a lot to do.

If you’re like a lot of lawyers I know, you wouldn’t have it any other way.

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Networking math

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We tend to think of networking as arithmetic. The more people we know, the more likely it is that someone will need our services or know someone they can refer.

But it’s not arithmetic. It’s multiplication.

It’s not just about the people you know, it’s about the people they know.

A new contact may never need your services themselves, they might never send you referrals, but might know people who know people who will.

When you meet someone new, therefore, don’t look “at” them, look “through” them. Who do they know? Who could they lead you to?

If you meet your new contact in a networking-type setting where giving referrals and introductions is expected, tell your new contact what you do, describe your ideal client, and also describe your ideal referral source.

If they know someone who might be a good fit, ask them to introduce you.

If you meet them under different circumstances, it’s a longer process, but unlike a formal networking group, there’s no competition and you might make some great new connections.

One new contact might lead you to dozens of new clients; if that contact is well-connected, if they are a center of influence in your target market or your community, they might lead you to enough business to put you in another tax bracket.

Yes, it can be a lot of work. The good news is that you don’t need hundreds of new contacts to make your networking efforts worthwhile, you only need one.

Because one can lead you to many more.

How to get more referrals from lawyers and other professionals

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Thank you

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Every day, we’re presented with opportunities to say thank you.

To the new client who chooses you instead of any other lawyer, the existing client who sends you a referral, your assistant for covering for you when you’re late, the stranger who opens the door open for you.

And we usually say it.

We say it so often we don’t always realize we’re saying it.

We’re being polite. Saying what we were raised to say when someone does something for you. And in terms of civility, that’s good. But for the important people in our life, we can do better.

A recent study found that when it comes to showing gratitude, quantity doesn’t matter as much as quality.

So, what can we do to show people we truly appreciate what they’ve done? We’re not just being polite, we mean it?

The best way to show someone you mean it is to mean it. To feel it inside you and to share that feeling with them. Not just with your words, but with your tone of voice, your eyes, your complete attention to them.

When you are sincerely grateful, they know.

When you send a thank you note or letter, you can show them you mean it by personalizing the letter. Use their name, mention what they’ve done, and tell them why it means something to you.

You can also show people you appreciate them by showing them you’re thinking about them. Sending articles or links to videos you’ve found, about subjects you think will interest them, is a simple way to do that.

Remembering things about them—where they went to school, the names of their kids, the breed of their dog— shows people you care about them as a person, not just someone who helps pay your mortgage.

If you want someone to know you appreciate them, do what fiction writers do: “Show, don’t (just) tell.”

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Information vs. Implementation

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When I was studying for the bar exam, someone told me (or I figured out on my own) that I needed to not just read and re-read the material, the “input” side of studying and preparing for the exam, I also needed to work on the output.

So I spent a lot of time re-writing my notes and taking practice exams.

Most of my classmates read and re-read the material, seeking to memorize it. I did that too, of course, but I’m convinced that it was working on output that made the biggest difference.

One thing I did that really tested me was to re-write my notes from memory.

I’d take a topic, say “negligence,” and write down everything I knew. As though I was going to teach the subject to a classroom—or the bar examiners.

There’s no better way to see how much you know (or don’t). Try it with a case or contract you’re working on right now, or something you have to write. No notes, just write down everything you know.

Anyway, I thought about my experience this morning when I read that most successful people tend to invest as much time, if not more time, on implementation.

For every hour they spend reading or listening to information, they spend two hours applying what they learned.

If they take a course on marketing, for example, they don’t just sit on what they’ve learned; they use it. They write something, they practice doing something, they improve what they’ve been doing or they do something new.

Or so the theory goes.

But how does a lawyer measure something like this in terms of their practice? How do we know how much time we spend on output?

We write and speak a lot, and we get paid for our advice, but we do more thinking than anything else.

Is “thinking” considered output? Implementation?

If it is, we’re covered. We output all day long.

The ultimate marketing course for attorneys

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The one thing your first-time website visitors look for

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Someone finds your website and sees a lot to look at and read. Articles and blog posts about the law, about their legal situation, about the services you offer, and about you.

But that’s not what they’re looking for. If they’re like you and and me and everyone else on the net, they’re looking for a reason to leave.

Something that tells them, “This isn’t for me.”

It’s survival instinct. There’s too much to read online and too little time to read it. So while you may provide a lot of great information and reasons to hire you, if you don’t give them a reason to stay and read it, most people won’t.

Your website needs a hook. Something that catches the reader’s attention and compels them to keep reading.

Usually, that will be a headline that promises something they want or makes them curious about something that interests them.

It might be a sub-heading, a bullet point, or a callout box. It might be a chart, a checklist, or a few words of bold text.

But you need something to stop them in their tracks and give you a few seconds of their time.

Once you have that, once they decide they won’t leave (yet), you need to give them more reasons to stay and learn about what you do and how you can help them.

But they’re still not ready to read everything, top to bottom. People scan and scroll, so give them something that allows them to do that.

If you do, they might read more. If you don’t, they won’t get to read all of your amazing insights, hear about your glorious victories, or convince themselves to take the next step.

So you (and your team) have your work cut out for you.

You may get it right, or you may get close, but close only counts in horseshoes and hand grenades. That’s why, statistically, the vast majority of first-time visitors leave and never return.

So you need one more hook.

You need to offer them the opportunity to receive something they want—a report or ebook, checklist or form—something that ties in directly with whatever brought them to your website in the first place.

Something that makes them say “I want that” and be willing to give you their email address to get it.

If they do, you can stay in touch with them and continue to persuade them to take that next step.

Here’s how to do that

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Someone needs your help

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Imagine you have a lawyer friend who asks for your advice.

Not about legal matters, about marketing.

They are in the same practice area as you and want your advice about getting more clients and increasing their income.

What would you say to them? What would you tell them to do?

You would probably start by asking questions.

What do you do now to bring in business? How well does this work? What have you tried before? Why did you stop? What other strategies have you considered?

You’d want to know what’s working for them and what isn’t, what they like and what they’re good at.

And then, you’d probably tell your friend to continue doing what’s working and look for ways to improve his results. And you’d suggest some additional strategies to consider.

Yes?

Okay.

You’ve probably figured out that this other lawyer we’re talking about is you. You’re having this conversation with yourself.

And you should because it’s often easier to see answers for others than for yourself.

If I asked you those questions, your answers would help clarify where you’re at and where you want to go, and we would then talk about what to do to get there.

You can have that same discussion with yourself, because you already know many of the questions—and the answers.

Questions, answers, marketing plan: The Attorney Marketing Formula

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How often do you check email?

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I have an addiction. I can’t stop checking my email inbox. All day, every day, I click and see what’s new.

I delete 90% of what comes in, but that still leaves me with a lot of messages to respond to or think about or flag for future action.

True, that’s the nature of email, but when you process your inbox every hour, or several times an hour, you get distracted from other things you’re working on, or should be working on.

A lot of rabbit holes find their entrance in your email inbox, don’t they?

I know I’m addicted and not just busy because when I’m not checking email, I’m thinking about it. Which drives me to check again.

I’ve got notifications turned off, and that helps. But like Pavlov’s dog, I’m already conditioned. Whenever I’m in front of my computer or I have my phone in hand, I click and check.

No matter what else I’m doing, there’s always a bit of underlying tension in my body as I feel the urge to click something.

Enough is enough. Recently, I decided to break my addiction.

I set up two rules for myself:

  1. I keep the browser tab closed. To check Gmail, I have to open a new tab. By making it a deliberate act instead of a reflexive one, I give myself a moment to consider what I’m doing.
  2. I treat processing email as a task and schedule it. Once in the morning, once in the evening.

How’s it going?

I’m having withdrawal systems, that’s for sure. I had to break my rule once because I was waiting for something to come in and if I waited until the evening to check, I wouldn’t have had time to handle it.

But once I’m used to this new schedule, I think my brain will thank me for giving it some time off.

On the other hand, it might demand that I change the rules so I can check my inbox 3 times a day.

Most people check their email often. Which is one reason email is so effective for marketing legal services

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Eight days a week

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I got an email this morning that opened with, “Hey David, I’m on vacation this week. . .”

It was shorter than his usual and he wrote it, he said, “from the beach” in Atlantic City, but it struck me that if he was on vacation, he shouldn’t be writing to me—or anyone.

But who am I to talk?

I rarely take vacations, and when I do, I bring work with me. I don’t always do the work but I like knowing I could.

When I worked at an office, I usually brought a file or two home with me for the weekend.

And there were plenty of Saturdays when I was back in the office, sometimes half-day, sometimes all day. I got a lot of dictation done with the phones quiet and nobody else around. I would have worked Sundays, too, but the air conditioning was off.

Poor me.

Can you relate?

Why do we do it? Why are we always working?

Yeah, we’re busy, we’ve got bills to pay, goals to achieve.

But also because we see hard work as a virtue and time off as an indulgence.

But it’s not. We’re not machines. We need time off.

We need time to rest our bodies and our minds, to play and enjoy the fruits of our hard work. We need time away from from demanding clients, deadlines, and overwhelming inboxes.

Even if we love every minute of our work, we need time off. We don’t necessarily need long breaks, but we need something.

When we push ourselves to keep working, when we rely on willpower and negative reinforcement, we reach a point of diminishing returns. We might get more work done, but the quality of that work often suffers.

So does our emotional well-being.

Go for a walk this afternoon. Take the weekend off. Put your vacation back on calendar.

And when you take that vacation, don’t bring any work with you and don’t send me an email.

Read a book and enjoy the fresh air. The work will be there when you get back.

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Not too hot, not too cold

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When it comes to communicating with your list(s), whether through a newsletter, blog, social media or any other mechanism, you have to ask yourself, “How much is enough?” and “How much is too much?”

How often should I contact them? What is a good length or word count for my articles or posts or videos?

Because if you send them too much or too often, you might overwhelm them and lose them. They might unsubscribe or they might stop reading or listening and responding.

But the same can happen if you give them too little.

If they don’t see value in what you send them, or they don’t hear from you often enough and forget who you are, they will leave or tune you out.

That’s not necessarily fatal, however. The only metric that really counts is the amount of business you get from your articles or posts.

How many new clients, repeat clients, up-sells and cross-sells, and referrals is the only thing that matters. Everything else is nice to have but not essential, even if you could track it.

Opens? Clicks? Shares? Engagement? Hard to track, and if you have a small list, usually not worth the effort.

Capice?

Still, you don’t want to overwhelm people with too much information, any more than you want them to stop following or listening to you because you send them too little.

You also don’t want to make more work for yourself than necessary.

You want to build a “relationship” with them, so that they come to know, like and trust you, and eventually hire or refer you. You do that by providing valuable and interesting information, and making it good enough that they look forward to getting your next.

What makes it good enough? It doesn’t need to be brilliant or exhaustive. It simply needs to be interesting and relevant to your readers.

As for quantity, when it comes to a newsletter or blog post, I suggest you publish or post once a week. Often enough to keep your name in front of your list, but not so often that anyone tunes out or you can’t keep it up.

And keeping it up is important because you never know when someone will be ready to hire an attorney or has a friend who needs one.

You can publish more often than once a week. Whether or not you should do that depends on your practice area, your market, and you.

You need to find a happy middle ground, one which keeps people reading and responding, and allows you to publish regularly, without taking up too much of your time.

As for length, a few paragraphs or a few hundred words are enough, and certainly not too much. You’ll never overwhelm anyone by sending them something they can consume in 2 or 3 minutes.

Shorter posts are easier to write and take less time. You can do everything in less than an hour a week.

Not too hot, not too cold. It’s just about right.

How to build your practice with a weekly newsletter

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Did I ever tell you about the time I messed up a case?

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Success stories are valuable tools for marketing professional services. They show prospective clients that you’ve helped others solve the same or similar problems, implying that you can do the same for them.

Talk about the problems people brought to you, the pain this caused them, and the hard work you did to deliver them from misfortune.

And don’t forget the happy ending.

On the other hand, don’t make everything look too easy.

You’ll be more believable and relatable if you tell people about cases that didn’t have a happy ending.

The client didn’t listen to you or the case had problems you couldn’t solve.

You might also tell stories about times when you messed up.

Talk about a case you lost and how this affected you. Talk about your struggles to “save” people and your guilt or sadness when you couldn’t. Talk about a mistake you made and what it cost you to fix it.

Show people the human you, the imperfect you, because people know you’re not perfect and they’ll love you for being honest with them.

But be careful. You need a deft hand to do this.

It’s best to talk about failure in the past tense. Talk about what you learned from the experience and how it made you better at what you do.

You’ll hear me talk about things I did when I first started practicing, how I struggled, what I learned, and how I changed and became successful.

A failure story with a happy ending.

You also need to be selective about the issues you talk about.

If you messed up a case because you got hooked on pain meds after surgery a few years ago and finally kicked the habit, I don’t think anyone would look down on you. If you abused recreational drugs for many years, however, and only recently got clean, you might find some people worrying about you relapsing.

I was late for court once and my case was dismissed. I had to file a motion and pay sanctions to save it. I can tell that story because people understand “being late” and because I saved the case. If I lost because I blew a statute and the client sued me and won, I probably wouldn’t tell that story.

Tell success stories, mostly, but occasionally talk about things that didn’t go so well. If it was your fault, be careful. It’s easy to go too far.

If you’re not sure, have a friend look at your story before you publish it.

Because friends don’t let friends publish drunk.

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