The power of risk reversal

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In the 1980s, a lawyer friend and I started a real estate seminar business. We took out full-page ads and invited people to come to our office in the evening to hear about buying real estate with “no money down,” something my partner had had extraordinary success doing. 

We charged $150 for the initial seminar, and at the end, invited attendees to sign up for our primary program, which required an investment of several thousand dollars. 

This was during the real estate seminar boom, and we did extremely well. 

One key to our success was offering a 100% money-back guarantee. At the end of the initial presentation, if they didn’t feel what we taught them was worth the cost, all they had to do was tell us they weren’t happy and we would refund the fee. 

We had thousands of attendees and only a handful asked for their money back. 

We also offered a guarantee on the primary program. If they did what we taught them to do to find properties and didn’t earn a profit of more than they paid for the program, we would likewise refund their investment. 

Only one or two clients requested a refund. 

The business worked because we were good at what we did and made things “risk-free” for our clients. They were satisfied or they paid nothing. 

You might offer something similar in your law practice.

You might “guarantee” the first hour or two, or the initial document you prepare. Your clients are happy with your advice or your work or they pay nothing. 

When prospective clients see you stand behind your work and there is no risk to them, when clients know they can hire you with total peace of mind, your bold and unique promise is likely to attract many clients who might otherwise hesitate to hire you. 

Clearly, risk reversal won’t work for every law practice but it might be worth considering for yours.

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What to do when you get a bad review

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It happens. A client is unhappy about something you did or didn’t do and posts a negative review. And those reviews can hurt you.  

But bad reviews are a fact of life. No matter how good you are and how hard you work to keep your clients happy, you can’t please everyone all of the time. 

So, what can you do? 

  • Don’t ignore these reviews. Contact the client immediately. Take responsibility, apologize, promise you’ll fix things, and then fix them. Once you’ve made amends and fixed what needs fixing, ask the client to update their review. 
  • If necessary, and the review platform allows it, consider responding to the review with an explanation. Show readers you care and have made improvements or are in the process of doing that. But be careful. A vindictive client might not let it go. At least prospective clients will see that you made the effort. 
  • Encourage clients to talk to you about their concerns early and often. Let them complain privately instead of waiting to tell the world. Consider scheduling regular phone calls to review “how you’re doing” and learn what you can  improve. 
  • Ask your happy clients to leave reviews. Get enough of those and you might “bury” the bad ones. 

Finally, learn from your reviews, good and bad. Find out what you’re doing well so you can do more of it, and what you need to change to keep clients better informed and happy.

Client feedback is always important. Negative feedback can be invaluable. 

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Specialization 2.0

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Many lawyers specialize in one or two fields of law and that focus has benefits. Continuing education and law firm management is less demanding, marketing and advertising is less time consuming and expensive. They also tend to get more referrals from lawyers in other practice areas who don’t see them as a competitor.

But there is still plenty of competition. 

My father had a general practice, and did well, but I think he would have done even better if he had chosen one or two practice areas and stuck to his knitting. 

If you wrestle with the specialization question, know that there is another way to specialize. You can specialize in the clients you work with instead of (or in addition to) your field of law.  

For example, you could work only (or primarily) with professionals, business owners or leaders in an industry or market, or in an ethnic or social community. 

By specializing this way, you get to know more about their industry or market and understand their problems and goals better than other lawyers. You speak their language, so to speak, and develop relationships with the leaders in that market. 

In time, you become known as an authority in that market, and other authorities seek you out.

When that happens, building your practice is a lot easier and a lot more remunerative. 

How to choose a specialty and get the most out of it

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Which type of legal marketing has the highest ROI?

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It’s not what you’re thinking. It’s not advertising, networking, social media, blogging, or speaking. It’s not even referrals, although that’s a big part of it. 

Many lawyers don’t think of it as marketing, but it is. The smartest and most profitable kind of marketing a lawyer can do.

And here it is in a nutshell:

Give your clients more value than they pay for and expect. 

Don’t roll your eyes. . .

Yes, it takes times and energy to do this. You’re giving away what might otherwise be billable hours, your knowledge and advice. 

So there is a cost. But if you do it right, it’s not an expense, it’s an investment. With an astronomical return. 

When you give clients more than they expect, they fall in love with you. As a result

  • You increase client retention. Clients aren’t tempted to hire another lawyer or firm, even if that lawyer or firm has significantly lower fees. This means the lifetime value of your clients is much higher than what most lawyers get. They are relatively immune to leaving and this is true no matter what the state of the general economy or your clients’ industry or local market.
  • Higher retention means you get more repeat business. It also means your clients are likely to give you more of their legal work, not just some of it.
  • Stronger client relationships mean you can charge fees commensurate with the higher value you deliver. 
  • You also get more referrals from your clients and their business contacts to “repay” you for all the added value you deliver.
  • You develop a reputation for proving excellent service and, through word-of-mouth, attract better clients who hear about you. You also attract bigger cases and more business opportunities.
  • Your reputation allows you to attract more professionals and business contacts who want to work with you.
  • Your enhanced reputation makes your other marketing easier, more effective, and more profitable. Overall, you have lower marketing costs, better results, and higher profits for you.

Surprise and delight your clients. They’ll be happier and so will you.

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You don’t need to be a brilliant lawyer to be brilliantly successful

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Average is good enough. 

If you’re reasonably competent, deliver value to your clients, and you’re not an asshat, that’s all you need to bring in a steady stream of clients and make a great living. 

Well, almost.

You also need to be good at marketing. 

Look at your competition. What do you see? I’ll tell you what you see. You see average lawyers with excellent marketing beating excellent lawyers with average marketing. 

Your marketing doesn’t have to be amazing. You don’t have to write a lot of big checks. But it needs to get a lot of things right.

Your marketing needs to

  • Get the right prospective clients to find you
  • Get them to view your website and read your marketing materials
  • Get them to understand what you can do for them, and why you are the right lawyer to choose
  • Get them to contact you
  • Get them to meet with you
  • Get them to hire you
  • Get them to pay you in full and on time
  • Get them to hire you again (and again)
  • Get them to send you referrals
  • Get them to give you an excellent rating or review

It’s all about marketing.

So, in the upcoming year, do yourself a favor and pay more attention to your marketing. 

Here’s a good place to start

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Separate the planning from the doing

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I used to call it a “weekly review” but now I call it “weekly planning” because I don’t just want to look at what I’ve done, I want to figure out what I need to do next. 

Whatever we call it, why do we do it once a week instead of more often? Because we need some quiet time to step back from our busy week to reflect on the big picture. During the week, we need to focus on getting the actual work done. 

Planning requires a different state of mind from doing. 

When we’re planning, we’re relaxed and thinking about the future. When we’re doing the work, we’re focused on making the calls, drafting the documents, and negotiating the cases. 

It’s better to break up the planning and the doing into two separate tasks, and do them at different times. It’s more efficient that way and produces better results. 

If you’re writing an article, for example, choose the topic a few days or a week before you do the actual writing. This allows your subconscious mind to “think” about the article ahead of time and find better arguments and examples that make your article easier to write and more effective. 

Whether writing an article, planning your week, or starting a new project, give yourself some space between the planning and the doing. 

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Offer of (social) proof

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You’re good at what you do. You’re a “trusted advisor” and deliver good results for your clients. Great, but can you prove it? 

It’s probably awkward for you to say you’re the lawyer people should choose but it’s a different story when someone else says it. When a client refers a friend or business contact to you, for example, they’re telling their friend or contact that you’re good at your work and can be trusted to do a good job for them.

Which is why referrals are so powerful. 

Referrals are a form of social proof and while they are often the best form, there are others and you should use as many as possible:

  • Testimonials (written or recorded) from satisfied clients
  • Success stories about your cases and engagements
  • Endorsements by other lawyers and industry leaders
  • Reviews on legal blogs or other publications
  • Media coverage of your firm or a case you successfully handled
  • Sharing via social media of articles and posts by or about you 
  • Being photographed in the company of (some) famous people
  • Being interviewed by notable podcasters, bloggers, and reporters

Because these also tell the world you’re good at what you do. 

Social proof gets people to pay attention to you and influences prospective clients who see or hear it, or people who can recommend or refer them to you. Social proof is an effective way to increase your exposure and name recognition, build your credibility, and get more people to visit your website to find out more about what you offer. 

It works by tapping into basic human tendencies like the desire to follow the crowd (the “bandwagon effect”) and/or the fear of missing out. 

Social proof can also help retain clients who might otherwise be lured away from your firm. 

Bottom line, the more social proof you have, the more successful you’ll be.

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Referrals earn referrals

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It’s simple. You get referrals by giving referrals. Send clients or customers to your business clients and contacts and they’ll do the same for you. 

I’m sure you do this when the opportunity presents itself and you “think about it”. I’m suggesting you think about it regularly and go out of your way to find referrals to give.

It starts by getting to know your clients and contacts beyond their legal profile or situation. Learn about their business and industry, find out what they do, for whom do they do it, and why they do it better or differently than their competition. 

And then, promote them. Tell people about their business, practice, or organization. 

And do it proactively. 

Don’t wait until you hear that someone needs their products or services, pass out their flyer, brochure, or business card or do the equivalent online. 

Talk about their business to everyone. Ask if they know someone who might need what they offer. Consider featuring them in your newsletter or blog.

If you’ve hired them yourself and liked what they did for you, write or record a testimonial for them.

Be an ambassador for their business. 

They’ll get more clients or customer, sell more products or services, and the people you refer to them will get products or services they need and want. 

You? You get the gratitude of both of them and, eventually, a lot more referrals.

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Hold on to what’s working and let go of what isn’t

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Most of what we do we do out of habit. We do the same things, the same way, and rarely think about it. 

We evaluate cases the same way we always have. We use the same process to decide to take them, settle them, try them, and drop them. 

We solve problems, draft documents, conduct depos and hearings and trials pretty much the same way this year as we did ten years ago. 

We talk to friends and family the same way as we have always done. We buy the same computers and software, hire the same employees and vendors, and conduct our life and business very much the same as we have before.

Not much changes from day-to-day.

This is a good thing if everything is working well, but a problem if it’s not. 

Which means at all times, we must stay alert and be prepared to anticipate and fix problems and take steps to avoid or lesson them in the future. 

But even if all is well, we’re safe and profitable and growing and happy, even if what we’re doing is clearly working, we don’t know if there’s something we could do that might work better. 

Unless we ask.

In fact, we should always assume there are improvements we could make and regularly look for them. Ways to lower costs, increase profits, and improve our systems.

We must examine, evaluate, and interrogate everything we do. Train ourselves to pay attention to everything and everyone. And ask lots of questions. 

That means doing quarterly and annual reviews of our entire operation, in addition to our weekly reviews.

It’s how we know what’s working and what needs fixing. It’s how we can follow the sage advice to “Hold on to what’s working and let go of what isn’t”.

Effectively managing a successful law practice and happy life depends on it. 

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How to be the top lawyer in your niche

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The top lawyers are different. Not necessarily smarter or more accomplished, they do things differently.

The key is their mindset about serving their clients better than any other lawyer could or would, and the reputation they develop as a result.

They make a commitment to their clients and to themself to be the best at every aspect of what they do. 

Because they do, their clients unfailingly turn to them whenever they need advice or help.  

It starts by letting their clients know that they (or someone on their behalf) will be available whenever they call with a question or to discuss a legal matter. 

They aren’t just willing to do it, they are eager to do it. 

Being the best also means being honest with their clients or prospects about what they can and can’t do for them. If they aren’t the best lawyer for the job, they don’t fake it, they tell the client. If the client insists that they handle the matter anyway, they say no, even if the client is happy to pay for it. 

They explain that the client doesn’t need what they’ve asked for, or that they’re not the best lawyer for the job, and suggest a different solution or refer them to another lawyer who can help them.

The best lawyers are also proactive. They rigorously stay in touch with their clients, even when they’re not actively engaged in legal work for them. They go out of their way to

  • Share useful ideas, information, and resources
  • Introduce them to prospective clients or customers for their business or practice
  • Invite them to sporting or entertainment events they know would appeal to them
  • Educate them about how their legal services work so that the client will be better able to recognize when they need help or advice and be better able to work with them
  • And they look for ways to spend time with them (off the clock) getting to know them, their families, their customers, and their advisors

It all boils down to this: the most successful lawyers don’t just provide good legal services for their clients, they build strong relationships with them. 

As a result, these lawyers never struggle to attract great clients or need to sell them anything. Clients seek them out, stay with them through thick and thin, and go out of their way to refer other clients. 

It feels good to be the best, and it pays well.

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